teacher demonstrates best advice when a first-time buyer is buying a home

First-Time Buyers In The UK: 5 Ultimate tips

Are you a first-time buyer in the UK? Purchasing your first home is an exciting milestone, but it can also be a complex and daunting process, especially when it comes to securing the right mortgage. To help you navigate this journey successfully, here are the top five mortgage-related tips for first-time buyers in the UK:

Know Your Budget

Before you start house-hunting, it’s crucial to understand how much you can afford. Use online mortgage calculators and consult with a mortgage broker to determine your budget. Consider all your monthly expenses, including the mortgage, insurances, council tax and energy costs. This will give you a clear picture of what you can comfortably manage. Check out our repayment calculator for an idea to what your monthly mortgage payments would be.

Check Your Credit Score

Your credit score plays a significant role in the mortgage application process. Lenders use it to assess your creditworthiness and determine whether or not you can proceed with a mortgage application. As first-time buyers ensure your credit report is accurate and work on improving your credit score if needed. A higher credit score can provide access to the most competitive mortgage lenders in the UK

We recommend Check My File when reviewing your current credit score where a free trial is available with comprehensive access to your credit history.

Research Mortgage Types for First-Time Buyers

In the UK, there are various mortgage options available to first-time buyers, including fixed-rate, variable-rate, and tracker mortgages. Each type has its own advantages and drawbacks. Research and compare these options to find the one that best suits your financial situation and long-term plans. Our mortgage team can have a no obligation chat to help you understand these options better.

Save for a Deposit

Lenders typically require a deposit that represents a percentage of the property’s value. The larger your deposit, the better the mortgage rates you’ll receive. Aim to save as much as you can, with most lenders requiring a minimum of 5% deposit to access their range of interest rates. It is also crucial when budgeting as first-time buyers to consider the range of upfront costs you will pay to finalise the purchase. Your costs extend to, but are not limited to, stamp duty and solicitors fees.

Get A Decision in Principle

Before you start looking at properties, consider getting a decision in principle for a mortgage. This not only provides you with a clear budget but also makes your offer more appealing to sellers knowing you are first-time buyers who have their finances in place. As they know you are a serious buyer. It can streamline the buying process and give you a competitive edge in a competitive market.

Bonus Tip: Work with Indigo’s highly experienced team who have provided decades of help to first-time buyers

Consider enlisting the services of a mortgage broker who can help you navigate the complex world of mortgages. We have access to over 90 lenders and 12,000 mortgage products and can assist you in finding the best mortgage deals tailored to your unique circumstances. To Clarify,buying your first home is a significant financial decision, take your time to understand the mortgage options available and seek professional advice when needed. With these tips in mind, you can embark on your homebuying journey with confidence, securing a mortgage that aligns with your financial goals and sets you on the path to homeownership in the UK. Good luck!