Getting on the property ladder

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Getting on the property ladder

How to get onto the property ladder

People are genuinely finding it difficult to get on the property ladder and secure their first mortgage with house prices rising. Even saving up for the deposit can seem like a huge task. Here are some tips to help on how to get yourself into the best position to buy your first home.

Employment

The banks are looking for people who can keep up with monthly repayments, are financially responsible, and have regular work. Make sure you have 3-6 months wage slips, if self-employed, you must have at least 2 years worth of account history, to obtain a mortgage approval. However, this is only one factor the lender will look at.

Deposit

Set-up a direct debit into a savings account, and get into the habit of saving your hard-earned cash.

Even if it is just a small amount, and it takes you a few years, you have to start somewhere. Later down the line, you may wish you had started sooner.

Credit file

There are lots of websites that offer credit checks, but the best one in my experience is: www.creditexpert.com. Credit expert will give you details of any outstanding bills, CCJ’s, defaults etc. All of these things can affect your lend-ability.

If there is something on your file which is affecting your credit score, give yourself time to get things sorted, so you get the best mortgage rate when you do apply for a mortgage. Don’t bury your head in the sand – find out what position you are in sooner rather than later.

Mortgage advisors

Speak to the experts. Most mortgage advisors offer their first consultation free of charge, so you can shop around if needed. These people have arranged thousands of mortgages, and will know which lenders would be most suitable for you and your circumstances.

Make sure you have 3 months worth of bank statements, 3-6 months wage slips, and a copy of your credit file to hand for your meeting. Contact Coppenwall and we can put you in touch with an advisor. We’ll help you get on the Property ladder.

Help to Buy

The government have launched a few incentives to help first-time buyers. The most common is the help to buy scheme. This scheme means you share ownership of a new-build property with the government, so you need less deposit, and a smaller mortgage.

There are some drawbacks, such as repaying their percentage when you do decide to sell, but overall, it is a positive move forward into a new home.

If there is anything you would like to discuss, or would like a referral to one of our trusted mortgage advisors, contact Coppenwall Estate Agents.

If you have started saving and are in the market to buy, then check out our Things to look for when buying a home post, there’s lots of great property buying advice on there.

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