Buying a house has never been a stress-free process, but buying a house for the first time is even more daunting.
Some potential first-time-buyers may be letting their fears get in the way of taking that first nerve-wracking step onto the property ladder.
To help you assuage your fears, read our guide to buying property for the first time.
First time buyer anxiety: what causes it?
Our bodies are hardwired to react fearfully to unfamiliar situations, and being a first-time-buyer can often feel like stepping into the unknown with a blindfold on.
You’ll have lots of important decisions to make right off the bat, and these decisions can become overwhelming if you aren’t prepared for them. Buying a home isn’t just a transaction, emotions can run high, especially when you’re under the pressure of buying your very first home.
It’s important to remember that this stress is both normal and temporary, and you shouldn’t let it deter you from taking your next big step. Buying your first home is a huge and exciting life event, and should be an enjoyable experience.
The key to overcoming your property is research, as learning what to expect will alleviate that feeling of entering uncharted territory.
Once you’ve put your property fears to one side, here’s how you can get things started.
Start saving
Generally speaking, the bigger the deposit you can save, the better the mortgage deal you can get, with lower interest rates and monthly payments. So, rather than rushing into a mortgage, it may be advisable to keep saving until you have more money to put down.
If you want to speed up progress towards your savings goals, consider going through your monthly sending and finding areas where you could cut back. For example, could you live with your parents for longer, or find somewhere cheaper to rent? Or you could even cut down on things like takeaways, nights out or morning coffee stops – these things all add up.
Cut down any debt and boost your credit score
It’s important to start paying off as many of your debts as possible well before applying for a mortgage.
Before mortgage providers can decide on how much they’ll lend you, they will need to assess whether you can afford to meet monthly payments. Part of this process involves looking at your debt-to-income ratio.
This is the total amount you owe each month versus the total amount you earn. The lower the ratio, the more appealing you’ll be to the lender.
This will also help improve your credit score – another thing lenders look into before deciding whether or not to offer you a mortgage.
Some other things you can do to improve your credit score include:
- Making sure you’re on the electoral roll
- Keeping all repayments you have up to date
- Closing all unused credit cards, mobile phone contracts and so on
Be realistic about what you can afford
It’s one thing to have enough saved for a deposit, but you will also need to factor all of the other moving expenses that will need to be paid upfront.
Making a budget based on different costs you’ll pay is a good way of preparing for the purchase of your first house. You should also decipher whether you can comfortably afford your monthly mortgage repayments. The amount you pay is determined by:
- How much you borrow
- The duration of the loan term
- The interest rate you are charged.
Ask the parents
When gathering the money for a deposit, many first-time-buyers will make use of a little extra help from the bank of mum and dad, and if you are lucky enough to have access to this, it can hugely speed up the process.
Parents or close relatives can also help first-time buyers get on the property ladder with a ‘guarantor mortgage’. For this, they put up their home or savings as security. If you default on the mortgage, they will be responsible for payments.
A mortgage advisor can help you decide if this is the right choice for you and your family.
Speak to our mortgage partners
Be prepared to compromise
A large part of first-time-buyer stress is wanting the first home to be perfect. But the truth is, your first home doesn’t necessarily need to be your dream home, and everyone has to start somewhere.
Make sure you keep an open-mind and don’t put too much pressure on yourself to find your ‘forever home’ right away. Remember, you should only commit to a home that you can comfortably afford, and once it’s secured, the world of property is your oyster.
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