First time buyers

YORK: A GUIDE FOR FIRST TIME BUYERS

Written by Lucy Bond

Everyone remembers the first step they take into their new home. The smell of new carpets, freshly applied paint or maybe sneezing from the dust piled on antique furniture. There is no doubt that it’s difficult for first time buyers to get onto the property ladder in York, especially with the market being so competitive. According to government statistics, the average price of a property in England is £242,286, which is quite a hefty number for young buyers who are just starting out their adult life.

Buying a house is the biggest purchase of your life, and small mistakes can cost large. This guide will give you tips and tricks for buying your first home.

Is getting a mortgage right for you?

First time buyers don’t always need to hop into a morgage straight away, you can rent properties although, it has its downfalls. Remember that renting isn’t a dirty word, it allows freedom while you save up for a mortgage.

Do you a have big enough deposit?

Before even thinking about setting up a mortgage, you or your partner have to save up a big lump of money to prove to the banks that you are worthy. The more you save, the more you borrow which can also affect the type of house you want.

Plus, you can find out if there are any government run schemes to help you on the property ladder. For instance, between the ages of 18 and 39, you may be eligible to get £32,000 from the government by opening a life time ISA which launched in 2017.

Deputy Leader of the Liberal Democrats party, and spokesperson for housing and safer neighbourhoods, Anne Reid gives her professional advice on getting on to the property ladder:

“For young people the first step would be to investigate if they do qualify for an affordable home under either the CYC policy or the Government’s Help to Buy scheme. Whichever route they go down they will need a deposit and they will need to explore their mortgage options”.

“As part of our affordable housing policy we do ask for up to 20% of affordable properties on any development site over 15 houses and those are split to 80% affordable rent and 20% affordable to buy”.

Reid also gives her advice on mortgages; “As for do’s and don’ts, they shouldn’t overstretch themselves as mortgage rates can go up and down. There is no guarantee that the rate they get now will stay the same in the years to come. Monthly mortgage repayments are often cheaper than renting if you have the initial deposit so in the long run they might well be better off”

This section of the guide will advise you on what to do and what not to do when it comes to taking the first steps in buying your first home.

DO consider the type of different loans out there. When you have your own deposit, the step after that is going shopping for a mortgage. It’s important to make sure the mortgage you chose is suited for you. Remember that banks can turn you down if they think you’re not eligible or haven’t saved up enough money.

DO check out the internet, there are many useful resources out there which will help you research advice from online estate agents. The mortgage calculator is also a useful way to have a look at an estimate of the money you may be granted.

DON’T cave into any pressure. Don’t sign any documents until you know exactly what you’re signing. Don’t be afraid to ask any questions, you must be sure what you are doing. If you don’t understand then ask for a better explanation. Don’t let an estate agent push you into buying anything as you’re the one who will be living there.

DO get all of your financial paper work in order. It’s important to be organised when you meet a mortgage advisor, as they may not grant you one if they see you’re not ‘with it’. The application is viewed very carefully to see if you can pay enough money each month/year.

York estate agent, Hudson Moody advises how a mortgage advisor will, “carry out an assessment of what you can afford, taking into account a wide range of issues, including your income, credit cards, credit history, loans, dependants and amount you spend on living costs”. Not to mention how you are going to manage your household bills including gas, electric and water.

York is one of the most expensive cities in Yorkshire so it’s hard to find a decent place to live that is also affordable. The goverement has said that, “Affordable housing is currently being built across the York area”

“ The mortgage calculator is also a useful way to have a look at an estimate of the money you may be granted

Home advisors, The Joseph Rowntree Housing Trust, mentions that Derwenthrope has had permission granted to build “517 homes in total with 201 of the properties considered affordable”. New Lodge in New Earswick, York will have “105 one and two bedroom extra care suites and 45 one-bedroomed residential care suites. Two blocks of apartments will be designed to provide flexible accommodation. And the former chocolate site, Terrys, has also been granted permission to build 315 homes in total has been granted; 64 of the properties will be affordable”. For more additional information, please visit www.gov.uk/housing.co.uk

Good luck to everyone who is starting out their life, whether you’re a group of friends or a happy couple just beginning their new adventure.