First Time Buyers: 4 Tips For Getting On The Property Ladder

Buying your first home is both a daunting and exciting journey, but ensuring that you thoroughly plan your finances can keep you on track throughout this time. As a first time buyer, it is very easy to get excited and let the idea of owning your own home take over your thoughts, without considering your finances or the other tasks at hand.

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But, it is also very easy to become pessimistic and be put off by various steps along the way. There are some top tips which all first-time buyers should keep in mind when it comes to getting on the property ladder in order to make the process much more hassle-free and fun.

Save, And Then Save Some More

Whilst there are some LTV (loan to value ratio) mortgages on the market, with some going up to as much as 95%, it is important to remember that the bigger deposit you have, the lower your interest rate will be, meaning that your monthly repayments are much more affordable. You don’t just need to think about getting the biggest deposit together as possible either, you will also need to consider the costs of paying legal fees.

Check that your savings are giving you the maximum which is on offer and compare different savings accounts to find one with the best competitive rates. You can set a direct debit up which goes straight from your current account into your saving so that your saving build up steadily without much thought. The more you save, the less stress you will have to deal with when the time comes, so try and plan as much in advance as possible.

Health Check Your Finances

Having a healthy credit score and history is vital when it comes to finding and applying for a mortgage. Check your credit score as regularly as you can in order to get a snapshot of your credit. By doing this, you can see how much you owe together in one place, such as gas & electricity bills and mobile costs, as well as loans, credit cards and mortgages.

You will also be able to check that the information is correct. If you do notice any errors, then you can contact your relevant lender and ask them to make a correction if needed. You will need to bear in mind that you will need to provide proof, should a mistake have been made. If you are interested in applying for a short term loan, such as a bridging loan, then you will also need to make sure you have run the appropriate background checks needed to apply. UK bridging loans have a few terms and conditions, so you need to ensure that they match up to what you want.

Register To Vote

If you aren’t on the electoral roll whilst living at your current address, you need to get on it now. Lenders will check whether or not you are on the electoral roll for your given address when they decide whether they lend to you or not, as this is one of their precaution checks against fraud, so it is very important that you are registered. You might want to check your credit report and score to see if there are any other areas of your financial history may be affecting your ability to borrow or lend money.

Apply With Caution

When you are ready to apply for your mortgage, you must make sure that you read all of the small print in order to avoid making multiple applications just because you are tempted to see what kind of offers you get. Each and every mortgage application you make will leave a mark on your credit report which can then be seen by other lenders and this will harm your credit rating. Making lots of applications in a short space of time could make it look as though you are desperate for money or are committing fraud.

FeliciaF.Rose

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