When the time comes for you to fly the nest, as exciting as the prospect of buying your very first home can be, there’s also a lot for you to get your head around. First-time buyers in the UK find it much, much harder to buy a property than people born one generation prior. As tough as it is, it’s not all doom and gloom, as you can still purchase your first home relatively easily, if you know what you’re doing. To ensure you don’t fall into the same traps that other first-time buyers tend to fall into, here’s a look at a few common mistakes for first-time buyers to avoid.
Not shopping around for a mortgage
When you commit to making a hefty purchase, it doesn’t matter what it is, ideally you will need to shop around to ensure that you get the best deal possible. Well, the same goes for a mortgage. Not all lenders charge the same fees and have the same rates etc, and if you shop around and compare prices, you will certainly be able to get the best deal possible. It doesn’t matter whether you’re looking for a one bed studio apartment, or a 3-bedroomed detached property, if you compare mortgage deals, you can save yourself heaps of money.
Blowing everything on the deposit
One of the main reasons why first-time buyers tend to struggle to purchase a house nowadays, is because the properties require so much up front for a deposit. Although you can go lower than 10%, the general consensus is that a minimum of 10% is what is required when buying a new property. Once you have saved up the deposit, experts recommend that you wait even longer, and continue to save. If you blow all of your savings on the deposit, what happens if something goes wrong, or if you need a new bathroom, kitchen, or boiler? No matter how much you have saved, make sure you put a few thousand to the side, just to tide you over until you’re in and settled.
Forgetting about extra expenses
The reason why we told you not to spend all of your savings on the deposit for your new home is because of the fact that you will also now have to pay extra expenses. Yes, your mortgage payments will probably be the highest, but you’ve also got gas, water, electric, council tax, home insurance, and food, drink, and anything else you may spend your money on. With a little planning and organization, you can easily figure out how much you will need to spend each month to live, but just remember that costs can quickly add up, even for something as basic as an online streaming service to watch movies on.
Not seeing the big picture
If realistically, you know that you are going to want to live in your new home for at least 10 years, don’t just settle on a two-bed property if you are planning on starting a family. If you can realistically see yourself starting a family and needing more than two bedrooms, it may be best to hold off on buying the property you’re eying up, and looking at the big picture instead.