Penny Cash asked:




Getting a foot on the first rung of the housing ladder is a priority for most young people, but these days getting a first mortgage is more challenging than ever. If you are thinking about taking those first tentative steps you will have more than a few questions that need answers. Hopefully this concise guide can point you in the right direction.

Type of Ownership
You may find that joining one of the council-run schemes in your area which offer shared ownership will make buying your first home easier. Another option is to club together with friends or to have your family help you. Remember to always consult a solicitor to get the details sorted out.

Getting a Mortgage
A first time buyer mortgage will require a deposit of at least five to ten per cent of your desired property’s value. For this reason, many first time buyers stick to homes which are of a lower value, such as flats or smaller terraced properties. You will need to approach your bank with details of your work situation and income. It is unlikely you will be offered a first mortgage at more than three times your annual salary. If all is well, your bank will give you a mortgage in principle, at which point you can start looking for your dream home.

Other expenses
Unfortunately, it isn’t just the cost of your deposit which you need to be prepared for. In addition, you will have to pay stamp duty (if required), surveyor fees, lender fees, land registry fees and your total moving costs.

Once you have settled into your new property, the process of applying for a first time buyer mortgage will be put behind you, meaning you can enjoy your new life in your brand new home.

Franklin