First-time buyer hurdles
Buying your first home in London can seem a daunting prospect. There are so many hurdles: sky-high prices, mortgages, deposits… So, it’s good to know that there are lenders who offer special offers for first-time buyers. Our experts at Rose Financial Services can guide you through the whole process.
Government schemes and deposit options
The good news is that there are also government schemes to help you get a foot on the property ladder. For instance, there are affordable home ownership schemes:
- Shared ownership scheme – First-time buyers can acquire a home through the Shared Ownership scheme if they cannot afford all of the deposit and the mortgage payments for a home that meets their needs.
- London Living rent scheme – this is a type of affordable housing with rents based on a third of local household income.
- First Homes scheme - If you’re a first-time buyer, you may be able to buy a home for 30% to 50% less than its market value. The home must be your only or main residence. The home can be:
- a new home built by a developer
- a home you buy through an estate agent, which someone else bought before through the scheme
The First Homes scheme is only available in England and you will need a deposit of 5% of the discounted price.
Meanwhile, with deposits, the more you can save, the more favourable your deal will be. Struggling to save a deposit for a first-time buyer mortgage? Options include:
- Help from family (guarantor loans)
- Government schemes like Shared Ownership or First Homes
A Lifetime ISA
Step by step mortgage process
Thinking of buying? This is the process you’ll follow:
- Get an Agreement in Principle (AIP)
- Find a property and make an offer
- Instruct a solicitor and apply for the full mortgage
- Get a property valuation and survey
- Mortgage offer issued
- Conveyancing — searches and enquiries
- Exchange of contracts
Completion
The benefits of using a first-time buyer mortgage broker in London
A mortgage advisor in London can offer a wealth of knowledge:
- Support with your AIP
- Guidance on documents and applications
- Help with shared ownership and low-deposit options
Support until completion
Key costs and common mistakes to avoid
One of the biggest mistakes you can make is underestimating the total cost of buying. Remember, there are fees for valuation, mortgage arrangement, the survey, the broker, stamp duty, and the Land Registry.
Here are a few other mistakes to look out for:
- Not getting an AIP
- Ignoring government support schemes
- Skipping the survey
- Overstretching your budget
- Not researching the local area
- Not thinking about re-sales or long-term plans.
At London-based Rose Financial Services, our brokers are experts at supporting first-time buyers in London. If you’re thinking of buying a home, get in touch.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.
