Now you have decided to buy a home. It is the right decision because having your home has its own charm. It will be recognised by your name and thus, creating a proud moment for you. For most of the time, purchasing a new home has been a dream comes true, but it will take time. It is a cumbersome process that may take several months to complete.
The biggest investment! Yes it is not the small thing to do. By considering the bulky process, one might think of living in the rent because they either do not have enough earning or they do want to disturb their savings.
But suggestion would be to go for home purchasing. Two reasons that make this suggestion stronger are:
- It would be your right financial decision (as you can save money by not giving a rent)
- You may come under the tax shelter (as mortgage interest does not attract taxes)
A Critical Scenario for the First-Time Buyer
Climbing on to the housing ladder is not as easy as it looks sometimes. You have to do a lot of preparation, especially if you are a first-time buyer. You have to indulge in the documentation, multiple processes and indeed, a hefty financial obligation (using the home as collateral).
As being a first-time buyer, how can you ensure that you are purchasing the right property? How to make the process hassle-free at large? How can you manage the burden of the long process?
To help you in this regard, here are some vital 7 TIPS that you need to follow while buying a home in the UK:
Inspect the location before the home purchase
Do an early inspection of the place where you want to purchase a new home. You have two options to do that, such as:
- Travel around the streets and inspect the entire infrastructure
- Take out a local person if he is in your acquaintance
You should have a home where the neighbourhood is good and look better in terms of communication. During any mishappening, only your neighbours come to help you. Check whether the location has convenient travelling arrangements or not. Or if yes, then there should not be too much noise pollution. Other factors that need to be considered are crimes in the location, homeowner insurance facility in case of natural calamity, the drainage system and many more.
Start savings from now onwards
Savings are very much necessary. Prepare your family budget as such from which you can keep a specific amount aside to use during the mortgage. Put restrictions to your expenses and LOOK ONLY FOR NEEDS NOT THE DESIRES.
You might think that how small savings can help for more significant investment? You cannot buy a home with those little savings, but at least you can pay the deposit to get the right mortgage. Remember, you have to spend at least 5% deposit while availing a mortgage, and the percentage will go up if you have a poor credit score.
Hire a trustworthy mortgage broker
You are going to buy a home for the first time in your life, and thus, you do not have enough understanding of the marketplace. It would be better for you to hire a mortgage broker in the UK, who will make all the arrangements from finding a lender to assisting during the process.
Do online research and find out the reliable UK mortgage broker like ShineMortgages.co.uk. The specialist knows all the trustworthy lenders, which are the leading providers of mortgage for the first-time buyer. By doing this, you can gain the chance of getting a deal on better price and beware of all the costly mortgage offers.
Select the best mortgage with affordability is the critical factor
To continue with the point mentioned above, you have to select the best mortgage that should go according to your repayment capacity. In such a scenario, you should sit with your independent mortgage advisor as much as you can do. It assists in choosing the right lender that has a good record of providing the mortgage.
Remember, your affordability is the critical factor. If buy you buy a costly mortgage, it will put a massive burden on to your monthly or annual income.
Keep an eye on the interest rates in the market
The mortgage interest rates in the UK do fluctuate year to year. You have to take into consideration as much as possible. If the interest rate is low, then you have a chance of cheap mortgage deal or vice versa.
Consult with your mortgage broker about the interest rates. Fixed-rate rates, tracker mortgage and offset mortgage rates should be analysed by you properly.
Analyse overall costs
It would help if you never leave your homework incomplete. You are purchasing a new home, and the total cost is not all about the home value or mortgage interest rates. There are many other expenses as well, such as:
- Solicitor’s fees
- Survey charges
- Stamp duty fees if the amount is above £120,000
- Decorating or furnishing costs
- Removal fees (if you remove the deal)
You must have the amount to bear these costs. Therefore, savings are more important in such a scenario because you can manage these expenses from it. Earn more, if possible, to cover up the mortgage rates as well.
Prospects of property insurance
Check before going to any location and buying a home that whether the property has the insurance facility or not. Confirm from locals and explore the search engines to know which the insurance companies are working in the area. What deals they are providing and how much premium you have to pay.
This step becomes vital when you see sudden loss to your earning and facing difficulty in paying mortgage repayment. Having insurance is something that can come as the backup for you. It can also save your credit score too.
You want to purchase a home in the UK because you are desperate to live your life comfortably. A right preparation can do wonder for you, and the proper guidance can make everything possible for you. Therefore, follow these tips and move ahead to fulfil your purpose.
Description: If you want to buy a home in the UK, then preparation becomes a key factor. This blog has discussed what you should do before going for the mortgage process.