Home Property What You Should Know as a First-Time Homebuyer

What You Should Know as a First-Time Homebuyer


There are numerous factors to consider when purchasing a home for the first time. It’s likely one of the most important decisions you’ll ever make, so ensuring sure you understand the process is essential. If you’re not sure how to buy a house, check out the guide by estate agents in Orpington for first-time buyers below.

Putting money aside for a deposit

Saving for a deposit is among the initial steps in the home-buying process. The average deposit for a first-time buyer is roughly 20% of the purchase price, which may entail saving £20,000 or more. Be realistic about how much money you could save each month, check all of your expenses, and see if there are any areas where you can save money. To save money on rent, many first-time buyers nowadays consider moving in with their families. Although this isn’t an ideal circumstance, it can assist you in saving a lot faster, so that you’ll be close to getting your own room again.

A useful hint is that saving is always simpler on payday. You’ll find a way to live without it if you immediately deposit as much money as you can into a different account. 

Looking for a House:

Finding your first house should be high on your priority list, so think about what you want.

Should you buy a house or a flat? Which is better: freehold or leasehold? Freehold property means you own the ground on which your house is built. A leasehold means you possess the property but must pay the freeholder rent. Is it an existing property or new construction? What is the reason for the property’s sale? Since when has it been available? Is the seller looking for a new home? Have they received any other offers?

Once you’ve chosen what you want, start looking for your ideal home and scheduling viewings. It’s a good idea to compile a list of all the questions that you would like to ask before you get to the property, as it’s easy to forget things. It’s also a good idea to take along a family member or friend who could encourage you to discuss the critical questions.

Including a second person ensures that someone will be present to provide an unbiased opinion. Consider that as a first-time buyer, you’re more appealing to sellers because you don’t have anything to sell and are more inclined to want to settle in as soon as possible.


There are several types of mortgages offered to first-time buyers, and it’s vital to understand what each one means. The loan-to-income ratio is typically capped at four and a half times your income by most mortgage providers. Mortgages are normally paid off in monthly instalments over a period of 25 to 40 years. Because the bank will charge extra on your loan, you will end up repaying higher than you borrowed.

Take the time to compare the interest rates offered by different mortgage lenders, as some provide better bargains than others. Your mortgage provider will require a lot of material from you in order to determine how much of a risky borrower you are. There are ways to lower your mortgage payments, but remember to seek legal counsel when selecting the right mortgage type for you.

Making A Purchase Offer

Once you’ve discovered your dream home, you’ll need to submit an offer through an estate agent. You may be required to show proof that you can acquire a mortgage based on an agreement concept. You must properly take out a mortgage once the offer has been approved. For people looking to purchase their first house, the government offers a variety of programmes.

What Does Stamp Duty Mean?

When you purchase a home or land in the U.K. for more than a particular amount, you must pay Land Tax. The amount you must pay is determined by the property’s worth. First-time buyers, on the other hand, are exempt from paying duty on the initial £300,000 up to a total of £500,000. The 5% charge applies solely to that part of the transaction (nothing less than £300,000). To qualify for this reduction, you must have never held a property, whether purchased, gifted, or inherited, within the United Kingdom. You must also live in the property you are purchasing; you cannot rent it out. If you are purchasing a home with a partner who is not a first-time buyer, you will be ineligible for the exemption.

With these few pointers, it will be easier for first-time buyers to select and purchase a property.

Andrew Mcaffrey