[AD] How First-Time Buyers Can Successfully Budget For A Home

When it comes to budgeting for your first home, there are a number of different factors to consider. Here are a few ideas as to what you will need to pay for and tips on the best way to save, as well as options if you are looking to move and need to sell your house fast.

Budget and Deposit

Before deciding on the type of property you wish to purchase, you must consider the most important aspect- affordability. Most first-time buyers will need to save between 5-20% of the total value of the property they are wishing to purchase to put down as a deposit. Before trawling through the thousand of mortgage options available, it is vital you draw up a budget of your current monthly income and outgoings. 

The figure you need to save as a deposit is relative to the total cost of the home you are looking to purchase. Likewise, you will not be able to find a mortgage if you do not meet the requirements in terms of income level or if you have extensive outgoings. 

To successfully budget, be ruthless with what you are spending and see if there are any areas where you could save more or even increase your income. Look online at comparison sites, we buy any home and websites for more information on house prices and mortgage rates. When needing someone to value my house, it is important to use a reputable firm.

Fees

Whether you are looking to buy a home for the first time or want to sell a house fast, there are a number of fees you would need to pay. Top of the list is stamp duty, however if you are a first-time buyer, you will be exempt from this on property valued up to £500,000 on the first £300,000. 

You will also need to pay solicitor fees, survey costs, buildings insurance and sometimes mortgage brokerage fees. When looking to engage someone to value my house, usually an estate agent will be called out to do this. However, buying or selling a house without an estate agent can be a good way to save on extra costs. There are a number of different companies who are able to give you all the pros of buying and selling houses without estate agent fees. 

Before making up your budget, ensure you have also included these other costs and fees as part of what your overall home move will set you back financially. If you are wanting to move and sell your house fast We Buy Any Home can provide some more information.

Saving for First-time Buyers

Saving for your first home can take time, so every penny really does count. Saving methods such as using a Lifetime ISA or Help to Buy ISA are great ways to save. Both types of saving accounts give first-time buyers the opportunity to save tax free and enjoy the benefit of a government bonus, helping to top up your savings and bring the possibility of purchasing your first home a little closer.