First-time home buyer

GETTING ONTO the housing ladder is one of the biggest financial commitments you’ll probably ever make. Buying your first home is an exciting milestone for anyone and a new build property can be the right option for many first-time buyers willing to wait to move into their new home.

For a lot of people, the best thing about a new build is being the first person to make it a home. Most of the time, the buying process is simpler, too. Government data has revealed the value of existing homes in Britain has grown by 6% over a 12-month period while at the same time, the value of new build homes increased by 23%, meaning new builds outperformed older properties by 17%[1].

So are you wondering if you’re ready to take that step? Knowing what steps to take to secure your dream property can make all the difference.

HERE ARE OUR ESSENTIAL TIPS FOR FIRST-TIME BUYERS LOOKING TO BUY THEIR FIRST NEW BUILD HOME:

1. RESEARCH AREAS CAREFULLY

Make sure that you do thorough research into different areas before deciding where you want to live. Look at factors such as crime rates, public transport links and local amenities, and visit the area to get a feel for it.

2. MAKE SURE YOU CAN AFFORD IT

It’s important to weigh up all the costs of buying a home, and work out what you can and can’t afford. The amount you’ll be able to borrow from mortgage lenders isn’t just based on your income, but on your outgoings as well, so it’s a good idea to get your finances in order as a first step. We will help give you an idea of what lenders might offer you. And we will factor in additional one-off costs like survey fees, insurance and conveyancing costs too.

Once you’ve done this, you can decide how you might take advantage of any developer offers that are currently available, including deposit contributions and home part exchange, to help make your brand-new home an affordable reality.

3. OBTAIN PROFESSIONAL MORTGAGE ADVICE

Our professional mortgage advice team have access to a wide range of lenders and their extensive knowledge of the marketplace allows them to negotiate on your behalf for more favourable terms. They can help you make an informed decision by highlighting potential pitfalls and explaining different repayment methods, as well as providing tailored advice specific to your needs. They’ll help you through the process of getting pre-approved for a mortgage so you know how much you have available to spend. This will help narrow down your search and give sellers confidence that you’re serious about buying. This gives you peace of mind that the advice you receive is professional, accurate and tailored to your needs.

They will also guide you through the mortgage process from start to finish. Ultimately, your mortgage adviser’s aim is to help you save time and money by providing the right mortgage solution for your individual circumstances.

4. FIND THE RIGHT NEW BUILD HOME FOR YOU

Make sure you thoroughly research the area you want to live in. Think about what’s important to you – a train station nearby, a high street with a nice café or two, or good schools – and see if the area ticks your boxes. As well as looking on popular property search websites, developer websites also have useful information about living in different areas. Be prepared for the fact that you might be buying off plan – that’s buying a home before it’s been completed.

This comes with many advantages, such as being the first to live there and getting to choose your own fixtures and fittings. Plus, there’s no need for extensive renovations when you move in, so you can focus on settling in and personalising your home straight away. Make sure you know what to look for when viewing properties. It’s important to take your time inspecting each room – and don’t forget the garden, too. This will help you to make a sensible, rational decision rather than making an offer based on impulse.

5. DON’T FORGET ADDITIONAL COSTS

Remember to factor in additional costs such as stamp duty, legal fees and surveyors into the overall cost of buying a house. It’s important to understand exactly how much you need to pay before signing on the dotted line.

6. TIME TO RESERVE YOUR NEW BUILD HOME

Once you feel confident that you’ve found the right home and we’ve secured a mortgage for you, it’s time to reserve your new build property. You’ll typically have to pay a reservation fee, normally £500 to £1,000. If you change your mind at a later date, you’ll lose this – but if you go through with the purchase, it will be deducted from the total price.

7. APPOINT A CONVEYANCING SOLICITOR

A professional conveyancing solicitor (preparing the property transfer documents) is an essential part of buying your first home. Their expertise and understanding of the property market will ensure that you complete a safe and secure purchase, leaving no stone unturned in the process. They have experience dealing with everything from legal paperwork to financial regulations, so having them on your side means that all of your bases are covered when it comes to getting onto the property ladder.

When selecting a conveyancer for your property purchase, make sure you choose someone who is registered with either The Law Society or Council for Licensed Conveyancers and has professional indemnity insurance. This certification guarantees they’re suitably qualified to undertake such an important transaction on behalf of their clients. You can also check customer reviews of their professional services prior to making your selection. Remember to shop around for the best price and make sure you find a solicitor that specialises in conveyancing.

8. ARRANGE YOUR MORTGAGE

Our team of mortgage experts will provide professional advice and assistance during every step of the way, from helping you understand the process through to finding the right lender for your situation. We’ll also be on hand to answer any questions you may have about mortgages, so you can make a well-informed decision. With our extensive knowledge and experience, we’ll help you find a mortgage product that suits your individual needs. So don’t hesitate – get in touch with our team today and let us help make arranging your mortgage a smooth and hassle-free process.

9. OBTAIN A VALUATION AND SURVEY

When buying a new build property, professional valuation and survey services should be arranged to ensure they meet the requirements of your mortgage lender. Even though new build homes are covered by a ten-year warranty, your mortgage lender will want confirmation the property is worth what you’re paying for it. They’ll organise the valuation for you – this will involve a fee. A professional survey will provide an accurate assessment of the current condition and value of the property, allowing you to make an informed decision when purchasing. Additionally, professional valuations can also help protect against future losses in the event that you are unable to sell or rent out your property.

The valuer or surveyor will have experience in assessing properties similar to yours; this insight can then be used to accurately assess its true value. The report will include details such as any structural faults, boundary inconsistencies and any other potential problems that could affect the property’s value. This assessment can then be used by mortgage lenders to ensure you are receiving a fair deal when buying your new home.

10. COMPLETE LEGAL WORK AND EXCHANGE

Your conveyancing solicitor will take care of this for you, so there’s no need to worry. The legal work just means formally transferring ownership from the seller or developer to you and making sure there are no legal obstacles in the way, such as local plans that might affect the value of the property you’re buying. Once the legal work is complete, they will exchange contracts with the seller or developer. This is when you pay your deposit and commit to the deal taking place.

11. MOVE IN

Upon completion of the home buying process, you will become the legal owner of your new property. This means that all rights to the property are assigned to you. The full cost of the property is transferred from your conveyancing solicitor to the seller. Then, the keys are yours and you can move in!

Don’t forget, our professional, friendly advisers are on hand to support you and can help you explore all of your options.

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