Buying your first home is exciting — and, if we're honest, a little daunting. There's a lot of new language and it can be hard to know what to do first. Here's a calm, jargon-free run through the early steps.
Start with the deposit
Your deposit is the chunk you put in yourself, usually shown as a percentage of the price. As a rule of thumb, the bigger your deposit, the wider the choice of deals and the better the rates you'll tend to see — but there are options for smaller deposits too, so don't let that stop you exploring.
Know what you can realistically borrow
Lenders look at your income, your regular outgoings, any existing credit, and how steady it all is. What one lender offers can differ quite a bit from the next, which is exactly where advice helps — matching your figures to the lenders most likely to lend comfortably, rather than stretching you thin.
Get an agreement in principle
An agreement in principle (sometimes called a decision in principle) is a lender's early indication of what they might lend you. It's not a full mortgage offer, but it shows estate agents you're a serious buyer and gives you a realistic budget before you start viewing.
Don't forget the extras
Beyond the deposit, budget for the costs around the purchase — a valuation or survey, conveyancing (the legal work), and any stamp duty that applies. First-time buyers often get relief on stamp duty, but it's worth checking the current thresholds for your situation.
Look at the help available
There are schemes designed to give first-time buyers a leg up, such as shared ownership and various savings incentives. Which ones fit — and whether they're right for you — depends on your circumstances, and it's the sort of thing a quick conversation can clear up fast.
Protect what you're building
Once you've got the keys, the right protection makes sure your home and your family are looked after if life takes an unexpected turn. It's easy to arrange alongside the mortgage, and it brings real peace of mind.
If you're thinking about your first home and want someone to talk it through with, get in touch for a free, no-pressure chat.
Pinpoint Mortgages is a trading style of Pinpoint Mortgages Limited, an appointed representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage. This article is general information, not personal advice.