Advice Offered To First Time Property Buyers

 

In spite of facing numerous difficulties, first time buyers (FTBs) have been offered advice on how to overcome these issues and break through the property market.

What Mortgage’s magazine editor, Ben Wilkie, stated that FTBs must pace themselves in making such a decision in order to figure the amount of money they are able to spend, as well as being able to look for the best deals. He also pointed out that through waiting a FTB may be able to get a better offer as it comes onto the market.

These comments follow a recently published report from Santander that explains that first time buyers can be expected to pay, on average, 17% of the total property price as a deposit. This is 2% greater than the average deposit and can take upwards of 29 months to save.

Furthermore, it is shown that a third of all first time property buyer’s deposits falling between 6% and 20%, with a further quarter of those looking to purchase having to rely on their savings in order to safely enter the property market.

Mr Wilkie said that, although it takes a while to search the best deals, there are some plans which do not involve paying much more than five per cent, with shared ownership also a possibility. Mr Wilkie continued, saying that whilst it takes time to find the top deals, some plans are different and do not require the buyer to pay any more than 5%, with the opportunity also of sharing ownership.

He went on to advice that "there are also government schemes where you can get loans that are there to help you buy your first home."

"Although getting a deposit is important, it is also important that you don't have a huge amount of debt, because lenders will take that into account when they check how much you can borrow."

A 17% deposit is not an affordable option for many people, however, there are a number of deals currently on the market that involve a smaller, 5% deposit instead. Such schemes can be found from places such as the Post Office and Skipton Building Society, with a higher interest rate on the mortgage balancing out for the lower deposit.

Wilkie concluded, saying, "Shop around, don't just go to the bank that you have your current account with."



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