We know the market in Brighton & Hove is fast paced and that taking your first step onto the property ladder can seem like a daunting prospect! Especially considering that a typical deposit is usually between 10% and 20% of a property’s value.
We often get asked by first-time buyers: “How do I get on the property ladder?” We always tell them that it is achievable with some patience and dedication to make it a reality.
If you are a first time buyer, our useful tips on how to get on the property ladder could help you make your dreams a reality sooner than you think!
Start Saving Early!
The sooner you start saving, the sooner you’ll be able to get your foot on the ladder. The earlier you start saving, the more it will become a habit, meaning you’re likely to save more!
To maintain consistent savings you can set up a direct debit to your savings account every month. Have a regular transfer of a specific amount each month on payday. That way, you won’t miss the money each month as you stash it away!
Stay With Your Parents if you can
It can be tempting to move out and be independent at the very first opportunity. Of course, that’s not a bad thing!
However, if you’re serious about owning your own property in Brighton or Hove, then forking out at least a few hundred pounds a month on rent is going to slow you down. Those monthly payments could instead add up to a substantial deposit over time.
So if you’re still living at home staying with Mum and Dad could help you buy your own place much quicker.
Speak to your mortgage advisor...
Speak to a Mortgage Advisor Before you View any Properties
When you’re in a position to put down a deposit, arrange meetings with a couple of mortgage advisors to find out exactly how much you can borrow.
Mortgage calculators on banking websites aren’t always an accurate indicator. Its much better to speak to a real person. It’s essential to know exactly what budget you have to work with so that you don’t view the perfect property, only to find that it’s out of your reach.
Save Your Money Wisely
Keeping your savings in the right place can make a big difference to the time it takes to achieve your deposit.
It’s best not to keep your savings in your current account. Not only will you gain little or no interest, but you’ll be far more likely to dip into them when you fancy a treat.
Instead, consider opening a Lifetime ISA. These accounts allow you to earn a 25% annual bonus from the government up to a maximum of £1000.
So for every £1000 you save, you’ll receive a £250 top up until you reach the maximum savings amount of £4000 per year.
Look into all Your Options
There are many different initiatives available to help first-time buyers get on the property ladder, and while some of them might not seem ideal solutions, they can help you get there more quickly.
Help to Buy is one example of a government-backed scheme that allows you to buy a property with just a 5% deposit, with the government lending you 20% interest free for five years.
Alternatively, you could look into shared ownership. This allows you to own a percentage of the property while paying rent on the other part.
Again, it’s worth speaking to a mortgage advisor first, who will go through all the options with you.
MyHaus are your local property experts for the Brighton & Hove area. We can also recommend mortgage experts to help you with your finances.