Silverman Black
Log In Not yet a member? Register
Money Matters: Top Financial Tips For First Time Buyers

Money Matters: Top Financial Tips For First Time Buyers

When you are a first time buyer embarking on buying a property, the world can seem like a daunting place. There are so many different things to think about before you take the giant step towards making a purchase and finances are amongst the most important.

With this in mind, we have put together our top tips guide on how to be financially aware before you make that purchase; whether it is knowing exactly what you can afford or perhaps understanding if there are any ways to help you raise the money, so you don’t have to struggle alone.

Be Aware Of Your Credit Score

You are likely to have heard of the phrase credit score, but you might not know what yours is. By taking the time to look into your credit history and how a lender is likely to see you, you can make particular improvements to increase your change of securing a mortgage

But how can you improve your credit score? Some of the easiest ways are:

  • Avoiding applying for any new borrowing for at least 6 months before you intend to make a mortgage application.
  • Ensure that all payments on loans, credit cards and other borrowings are made on time and in full.
  • Check your report to ensure that everything is correct and highlight any changes that need to be made.

Save Hard And Save Smart

One given of getting ready to buy a house is that you will need to save hard to raise enough money to cover the fees and the deposit. What you may not realise is that just as important as putting a substantial amount of money aside each month is where you put it.

Savings accounts are the obvious choice as they accumulate interest (and in essence extra money) every month. Make sure that you check the interest rate that will be applied to your account and if there are better deals around then make that transfer.

There are even dedicated accounts to help those saving to buy a home; such as the Help to Buy ISA. With this account you can not only save up to £200 per month (and put an initial £1,200 away) but once you make that purchase you will receive a 25% bonus payment. There is a saving limit of £12,000 on this account, however, at the end you could see an additional £3,000 added to your kitty!

Be Sensible On What You Can Afford

It might seem that saving for a deposit is the most important financial consideration to make prior to buying a home; but it is just as important to ensure that you can afford to own a home in the first place.

The general rule of mortgage lenders is that they will lend you up to four and a half times your income; however they will also look at your monthly expenses and everyday spending habits before making you an offer.

This stress test approach to lending may take some first time buyers by surprise, however, it has been put in place to ensure that you will be able to keep paying your mortgage and it does not end in repossession.

Remember Everything Else

Last of all, it is important not to forget all the other costs that may crop up when buying a home. These included solicitor fees, stamp duties, movers costs and of course any furniture that you will need to buy for your new home.

Ultimately, by carefully planning and getting your finances ready, in a few years you could be all the closer to owning your very own home! And remember, when you are ready, get in touch with Silverman Black and we can run through the local properties for sale in Carshalton by calling 0208 773 2929.

01/02/16 By Simon Walsh
Tags: Buying Advice
IE8 Alert! Cookie Alert!

To get the best possible experience using our website we recommend you upgrade to a modern web browser. More info