5 things first-time buyers need to know
We meet many first-time buyers, who often start the process feeling overwhelmed at first - and don’t worry, it's completely normal to feel that way.
We’re here to demystify what you need to know before you even start viewing properties.
#1 You need to get your finances in order
Before you fall in love with a property, you need to know what you can afford.
The first step is getting a ‘Decision in Principle’ (DIP). This isn't a formal mortgage offer, but it's a statement from a lender (like a bank or building society) indicating how much they might be willing to lend you. It’s based on a quick look at your finances and credit history. Having a DIP makes you a much more attractive buyer to sellers and estate agents – it shows you're serious and financially ready. Ask our team if you'd like advice on how to get one in place: 01482 50 51 52.
You’ll need to save for a ‘deposit’ - this is the lump sum you'll need to put down towards the purchase price. The larger your deposit, the less you'll need to borrow, which can often lead to better mortgage rates. For first-time buyers, various schemes in the UK can help, such as the Lifetime ISA (LISA) or Shared Ownership, so it’s worth exploring these options.
Remember, mortgage lenders will check your credit history, so make sure your credit report is healthy. Register on the electoral roll, pay bills on time, and avoid excessive borrowing before applying for a mortgage.
When you’re buying a house, be sure to budget for more than just the mortgage. Factor in stamp duty (more on that below!), solicitor fees, survey costs, removal costs, and the inevitable cost of furnishing and decorating.
#2 Understand stamp duty and the schemes available
Stamp Duty Land Tax (SDLT): This is a tax you pay when you buy a property or land over a certain price in England and Northern Ireland. The good news for first-time buyers is that there are often exemptions or reduced rates on properties up to a certain value. It's crucial to check the current rates on the HMRC website.
Help to Buy Schemes (and alternatives): While some Help to Buy schemes have closed, there are still options to assist first-time buyers, including the Lifetime ISA (LISA), which gives you a 25% government bonus on savings towards your first home (up to certain limits). Shared Ownership is another avenue, allowing you to buy a share of a property and pay rent on the rest. It’s crucial to consider all schemes very carefully.
#3 Don’t underestimate the importance of location
Once your finances are in order, it’s time to think about where you want to live. Once you’ve bought a property, it’s not a straightforward process to sell up and move if something’s not quite right - there’s a lot less flexibility than renting from that aspect.
Have a good think about what kind of lifestyle you want and the area you need to be in to achieve that. Are you looking for hustle and bustle or perhaps a quieter, family-friendly neighbourhood?
Consider transport links and if you need to be near a train station or on a bus route. Think about the volume of traffic that passes through and the travel time on your daily commute to work, or the distance to schools and family.
Amenities: What do you need nearby? Shops, schools, parks, a doctor's surgery, and a good gym? The best thing to do is make a list of your non-negotiables and also a ‘nice to have’ list - like a 20-minute stroll to a decent bakery for a Sunday morning pan au chocolat and cappuccino.
It’s not just considering the area for yourself, but also thinking about the area's potential for growth and resale value.
#4 Think about what features your home needs to have - but don’t be too picky!
Having a list as long as your arm of non-negotiables is a surefire way to add stress to your property search. You might completely ignore a house that’s perfect because it’s got one bedroom less than your preferred criteria. For example, you could exclude all homes with fewer than 2 bedrooms from your search (so you can convert one into a home office) and miss the perfect spacious 1 bedroom that already has an ideal working space elsewhere on the property.
Remember - just because a home doesn’t have a utility room, en suite or a low-maintenance garden just yet, there’s nothing to say you couldn’t make improvements to the right property further down the line. Often, these ‘added extra’ features can bump up the price of a property, and you can get more bang for your buck by adding them yourself.
#5 A good estate agent will be a crutch throughout the process
Navigating buying a home in Hull or the surrounding areas doesn’t need to feel daunting. There may be a lot out there to look at, but our best advice is to:
Sign up for property alerts: Once you have your Decision in Principle, you’ll want to find out when properties that match your criteria come onto the market. We can send you notifications directly into your inbox so you don’t have to spend hours scrolling each day. Often, we’ll let you know about properties even before they officially come to the market.
Ask as many questions as you’d like - you need to be fully informed when you’re making what’s likely to be the biggest purchase of your life! We’re on hand to help.
Always go to viewings prepared. Take notes, take photos, measure rooms if needed, and ask about things like energy efficiency and recent renovations. Afterwards, walk around the area to get a vibe for the neighbourhood if you’re not familiar with it. A good tip is to drive there from work in rush hour to get a real picture of what your commute could look like, too.
Buying your first home is a monumental step, and it's exciting. By getting your finances in order and putting a lot of thought into what you want from the property, you’ll be well on your way to finding your perfect first home in Hull or the surrounding areas.
So book your mortgage appointment and sign up for property alerts to get the ball rolling - best of luck!