Troubleshooting your first time as a buyer?
Here are the top six issues that you may face and what you can do about it...
Buying your first home is exciting! Finding a house you love can be a great experience... but the actual process of making it happen can feel overwhelming. So here are the top 6 problems you can face and the best solutions to them.
Problem one: I can’t afford the deposit
Solution: Save, save save
Saving is hard to do, but if you can get into the practice of putting money aside regularly, you’ll be surprised how quickly it can mount up.
Look at all your outgoings and pair back what isn’t strictly necessary and economise where you can. Think about living with parents to save on how much you have to spend each month, look at the different types of mortgages and maybe think about lowering your expectations on the kind of property you want to make your first home. It’s also worth looking for new build companies, as developers will often pay for either all or some of your deposit when you buy one of their homes.
Problem two: I can’t afford to buy a property
Solution: Think about changing your search location, buy with a friend or consider a shared ownership scheme
Consider an area you can afford. You may need to think hard about where you want to ideally live, versus how much you want to buy a property. Sometimes, if you expand your search area by just a few miles, you can find that sweet spot that’s on the fringe of a ‘good area’ and in an affordable price range. The bonus of buying in these areas is that typically they will grow in value more than the area that you wanted to live in, making it possible one day to move to where you wanted to live.
Have you thought about buying with a friend or a colleague? You’re likely to be in the same position so it makes it a good alternative if you can’t buy on your own. Make sure you both think about and agree in writing with a legal company what you’ll do if one of you wants to sell, if either party can’t afford the mortgage, if you fall out or if one of you becomes ill.
With shared ownership, you can look for properties where you can choose to buy from 25% to 50% of the property and ‘rent’ the rest. You are eligible if you are on a low, but steady income or are classed as a ‘key worker’.
Problem three: I can’t find a house I like
Solution: Be patient
When you’ve made the decision to buy, it can be hard to wait for the right property to come along because you’re raring to go, but it may take you a bit longer than you were hoping for. But don’t lose hope.
Have you thought about being proactive in your search? Talk to your local agents about the kind of properties you like so they can help search. At Giggs and McGrath, we’re always talking to prospective vendors so we may have news of properties that haven’t come on to the market yet. Sign up to our Heads-Up Property Alerts by clicking the image below to help you get ahead of the crowd.
Problem four: I don’t know where to start to get a mortgage
Solution: Find an independent mortgage advisor
Independent mortgage advisors often have access to products you wouldn’t have been able to find yourself. They will advise you on affordability, the best way to structure your loan and the benefits of each product you might want to consider – but they’ll also look after your application from the point you start to the point you receive your mortgage offer and beyond!
We recommend talking to our trusted partner, Assured Mortgage Advice. Click the image below to start your journey.
Problem five: My offer was rejected
Solution: Don’t panic yourself into increasing the offer
Find out why they rejected your offer and what price they would accept, and then decide if you think it’s worth paying the extra. Or even if you can! Think hard and be realistic about whether you can actually afford it.
You could ask your agent whether there has been lots of interest in the property to see whether it’s worth sticking with your original offer and even if there has been, let the agent know that you’re still interested and then start your search again. You never know what can happen in the future so keeping one eye on the property you offered on may be worth it.
Problem six: The survey says there’s some problems with the property.
Solution: Ask lots of questions
Most surveys will find some issue or other because a lot of houses were built more than 50 years ago! So, just breathe and then find out:
- How serious are the problems and do they need fixing now, or in the next five years?
- Will the problems stop you from securing a mortgage?
- What work is required?
- Do you need to get any specialist surveys done eg timber and damp, electric, gas or structural?
- How much will the costs be to fix the problems and does this mean you need to re-negotiate the value of the property?
These are just the top six issues we know first time buyers face and you probably have lots more questions. If you do, please contact us, we’d be really happy to chat and help you through your first purchase!