If you are a first time buyer, you will face a massive
undertaking when trying to get into the position of completing your first ever
property purchase. Unless you are very wealthy or have inherited a large sum of
money, you will have to go through the arduous task of saving up for a mortgage
deposit.
This saving process can take a lot of time, and depending on
your personal circumstances, it can prove to be very difficult. Nowadays, the
minimum required deposit for a mortgage is usually 10%. For most buyers, a
first time property purchase probably wouldn’t exceed £150, 000 so at a 10%
rate, that’s a massive required deposit of £15, 000. If you are renting during
this period of saving, this can prove to be even more difficult. A normal
person paying rent on a property can expect to be accustomed to the usual rates
normally faced on a mortgage repayment. But if you are paying these rates on
rent alone, the process of saving simultaneously, especially for a deposit as
large as £15,000 can prove very time consuming, very difficult and very
stressful.
Unfortunately, once the deposit is saved, there is then a
further saving required of another £3,000 on average for fees and expenditure
during the transaction process of the property. Conveyancing fees are
varied depending on the solicitors or licensed conveyncer that offers the
service. But, in order to provide legal cover and assistance on a property
purchase, saving for and paying for those conveyancing fees are
definitely required. The money spending unfortunately doesn’t stop there
either! Unless you are going through a private household sale, the estate
agents fees will be added on top of the conveyancing fees and on top of
the £15,000 you’ve worked really hard to save.
A lot of first time buyers are obviously very inexperienced,
but this also means that they are liable to make mistakes with their money in
the process of buying their first property. It is unfortunate as first time
buyers have to work the hardest and face the biggest mortgage rates, the
biggest required deposits and the most pressure when trying to meet the
requirements of estate agent fees and conveyancing fees.
The main key recommendation for any first time buyer is to
be fully prepared when making your first ever house or property or land
purchase. Why work so hard saving all of that deposit money to then put the
entire transaction in jeopardy by not having the sufficient funds put by for conveyancing
fees and estate agent fees?
The best course of action is to look for houses that you
would wish to move into in an area of your choice. Enquire with a local
mortgage advisor for information on the likely type of mortgage available to you
given your current position, for example job type, earnings, life insurance
etc. Once you have an idea on how much you wish to spend, how much you can
obtain through a mortgage, you’ll be better prepared to start saving for your
deposit. But, don’t forget those additional costs that should not be forgotten.
Estate agent fees and conveyancing fees can prove to be expensive. Save
additional money to ensure that you will be able to meet these fees and have
the essential services required in your first house purchase.
