If you are thinking of buying a property, it’s wise to keep an eye on the current housing market and see how this may affect your purchase and right now could be a good time. According to Zoopla, UK house prices have fallen 1.3% in the last 6 months but they’re no longer falling as quickly. Lower mortgage rates in the first half of 2023 have supported an increase in housing market activity but the increased likelihood of further interest rate rises, meaning higher mortgage rates, is likely to weaken demand and market activity in the second half of the year.
Here's our guide to buying your first home in the current market:
Save for a Deposit
The bigger the deposit you can save for your first home the better as this will give you more flexibility on the type of mortgage you can opt for and you will be more likely to avail of cheaper rates. Typically, at the lower end, you will need at least 5% of the purchase price to obtain a mortgage.
Check Your Finances
At least 6 months before applying for a mortgage you should check how your credit score looks and take steps to improve it. Also take a look at your bank statements and see where you can cut back on unnecessary spending if possible. Your mortgage lender will want to see a strong credit score in your name and that you can afford to repay your monthly mortgage repayments.
Talk to an Advisor
An advisor is worth their weight in gold when you are thinking of applying for your first mortgage and can help advise you on the best mortgage deals for your situation. They will also advice on everything you need to have in place before approaching mortgage lenders and can help the whole process go as smoothly as possible for you.
Are You Eligible for Government Assistance?
It’s always worth checking if you are eligible for any government schemes as you think about applying for your first mortgage as these can help considerably in buying your first home. Keep an eye out for Mortgage Guarantees, Help To Buy or First Homes schemes as these can all help you get your foot on the property ladder for the first time depending on your circumstances. Find more information at Gov.uk www.gov.uk/search/all?keywords=mortgages&level_one_taxon=4794066e-e3cc-425e-8cc4-e7ff3edb4c39&level_two_taxon=4ad66168-274d-4d83-9195-f4ab0ccc97cb&order=relevance
If you need some more help and support as you navigate buying your first home, our experienced team can help with the latest knowledge and advice, contact us here for more information and to book an appointment.
Source: www.zoopla.co.uk/discover/property-news/house-price-index-may-2023