Buying your first home UK is a big deal, but it doesn’t need to be overwhelming. Understanding the property-buying process will help you to make informed decisions – helping you to get the home of your dreams faster.
How to Buy My First Home UK
The key part of the property-buying process is the mortgage – a loan secured against the value of your property or land until it’s paid off. Most mortgages run for 25 years, but some are shorter or longer. Generally, you can borrow around four-and-a-half times your annual salary.
If you’re a first-time buyer, there are schemes available that can reduce the amount you need to borrow. These include the Mortgage Guarantee Scheme, Shared Ownership, and First Homes.
Large deposits are viewed as less of a risk to lenders, which can help you access more competitive mortgage rates and terms Rivers Edge. The minimum deposit for a home in England and Wales is 20% of the price of your chosen property.
Mortgage lenders will carry out a credit search on your file before lending you money. This leaves a footprint on your credit report and can impact your credit score. Taking on more debt can also reduce your borrowing potential, so it’s a good idea to start clearing any existing debt before purchasing your new property.
Once you’ve found your ideal home, you’ll need to complete the purchase and pay stamp duty (or LBTT in Wales). Completion usually takes place within two weeks of exchange, but this is flexible and can be delayed if you have concerns about the condition of the property.
