hand-house-mediumBuying your first home can be a challenging and highly rewarding process. Planning, time, energy and money all need to be committed so here are some tips to set you off on the right path if you are a first time buyer.

  • Think ahead. Check your credit file 6 months before you intend to purchase, this information is available for free or a low cost from credit referencing agencies such as Experian, Equifax and Call Credit. That way you have the best chance to rectify any issues or errors.
  • Build up a good credit score. Borrow on a credit card and pay it off, make sure you pay all of your bills on time.
  • Build a good rapport with your local estate agents; be clear of what you are looking for and that you have a mortgage in principal to make sure you are contacted when appropriate property becomes available.
  • Make sure you are on the Electoral Role at the correct address.
  • Prepare to pay for a conveyancing solicitor and potentially a survey. A with most services quality is often reflected in the price so the cheapest option is not always best, especially when it comes to one of the biggest transactions of your life.

How to boost your chance of buying a home by age 30

  • Grow Savings. Find smart ways to grow any savings you might have through investment on the stock market. It’s not without risk and there will be costs associated with advice and managing the money but the payoff could make the impossible possible.
  • Move back in with parents. If this option is available and parents are willing to accept a lower contribution than what you would otherwise be paying on rent and bills this gives the biggest opportunity to increase your saving pace and volume.
  • Retain Rental Deposits. If you are renting accommodation make sure you look after it and receive the full deposit back at the end of the tenancy. Loosing this lump sum could set you back financially.
  • Be a Property Guardian. Property Guardians live in buildings such as disused schools, offices or churches and act as ‘babysitters’ to occupy the building and deter squatters. Monthly rent is typically much lower than a usual tenancy which increases your chance to save.
  • Keep an open mind. Buying with a friend, part ownership, building your own home or living on a House Boat are all possible options. You may need to be flexible on location too.
  • Be Committed. Look at the big picture, sacrifices and budgeting now could result in the home you are looking for. Unfortunately it could take 10 years to save enough for a property deposit of 10-20% so really they should start educating the next generation of home buyers about this at secondary school!

Money Saving Expert have put together a First Time Buyers Mortgage Guide, available on www.moneysavingexpert.com/mortgages/mortgage-guide designed for those who don’t own a property and are looking to buy one. Whether you’ve a small or large deposit, and whether you’ve got a good or bad credit history, this guide will explain your options.

Speak to Mortgage Advisor Andrew Fagg from Davenport Financial Management to find out what mortgage products are on offer that might suit you.