Purchasing your first home can be a thrilling yet daunting experience, laden with many financial and emotional considerations. This guide will provide an overview for first-time buyers on how to navigate through the intricate process of acquiring your very own abode, from saving for a deposit to moving in.
Saving for a Deposit
Before the house-hunting can begin, there’s the small matter of the deposit. This initial payment is typically around 5% to 20% of the property price, but the more you can save, the better the mortgage rates you’ll have access to. Start saving as early as possible and consider leveraging schemes such as the Lifetime ISA, which offers a 25% government bonus on savings.
Understanding the Buying Process
The home-buying process in the UK generally follows a series of steps. Once you’ve found a property and had an offer accepted, the conveyancing process begins. This involves legal and administrative work carried out by your solicitor or conveyancer, such as drafting contracts, dealing with Land Registry enquiries and managing the exchange of funds. After the contracts have been exchanged, the sale becomes legally binding. The final step is completion when the keys are handed over and you can move in.
Expect Additional Costs
While your deposit and mortgage repayments might be your focus, don’t forget about the additional costs. These include:
- Solicitor/Conveyancer Fees: These vary depending on your property price and specific solicitor but expect to pay somewhere between £850 and £1,500 including VAT at 20%.
- Stamp Duty Land Tax (SDLT): For properties costing up to £425,000, first-time buyers are exempt from paying SDLT. For prices above this, the tax applies and increases proportionately to the property price. To view the current SDLT rate visit the Government website here.
- Surveyor’s Fee: To check the condition of the property, you’ll need a surveyor. The cost can typically range from £250 to £600.
- Removal Costs: Moving fees vary greatly depending on how much you’re moving and how far, but budget around £300 to £600.
- Other fees: These might include valuation fees, mortgage arrangement fees, and buildings insurance.
The Average Timescale
The typical timescale for buying a home in the UK is between 12 to 16 weeks from the moment your offer is accepted to completion. However, numerous factors can impact this timeline, such as the length of the property chain or unexpected issues arising from the survey.
Working with a Knowledgeable Local Agent
Estate agents can provide valuable local knowledge and guide you through the process. At Newton Fallowell we have over 30 sales and lettings offices across the Midlands, and the local property knowledge that comes with over 20 years of being in business; we are perfectly placed to support you on your property journey.
Maintaining a Realistic Budget
Navigating the sea of available properties can be exciting and it’s easy to get caught up in the allure of homes just outside of your budget. However, it’s vital to stay grounded and remember the budget you’ve set for yourself. Overextending your financial reach can lead to future stress and strain. Use online property portals to filter for properties within your budget. Furthermore, communicate your financial limits clearly to your estate agent. We’re here to assist you and will respect your constraints, guiding you towards suitable properties. Remember, there is a perfect home out there for every budget. With patience and perseverance, you will find the one that meets your needs and financial means.
Researching Areas and Deciding Your ‘Must-Haves’
Consider what you want from the area where your new home will be. Are schools important? Is it the commute time? Perhaps it’s local amenities, like parks or shops. Create a list of ‘must-haves’ and ‘nice-to-haves’ to help narrow your search.
Don’t let the process overwhelm you. Keep your end goal in mind and remember, you’re not in this alone. At Newton Fallowell, we’re dedicated to guiding you through each step, making your journey to your dream home as seamless as possible. Get in touch with us today to start your home-buying journey.
