Don’t let the fear of being a first-time buyer prevent you from buying a home. Our guide to common house buying concerns will help you conquer these fears and ease your nerves.
Buying your first home as a first-time buyer can seem overwhelming, but we’re here to address each key aspect and put your mind at ease. Whether it’s saving for a deposit, or dealing with a potential sale falling through, we’ve got you covered. These worries are completely normal, but the good news is, you don’t have to be afraid!
Can I really afford a deposit for my first home?
Yes, you can. Despite the rumours, getting on the property ladder is still very possible, and there are several ways to achieve it. With some research and solid planning, you’ll be well on your way to saving the deposit you need. Before long, you’ll be signing the paperwork!
Can I get a loan for my deposit?
Unfortunately, no as lender’s frown upon this practice. A mortgage is based on your ability to make monthly payments and the deposit you provide. Needing a loan for the deposit suggests you may not afford the property.
Consider finding a mortgage guarantor or speak to a mortgage adviser to explore your options.
What is a mortgage guarantor?
A mortgage guarantor is someone who commits to cover the borrower’s mortgage repayments if they are unable to. Their name will be on the mortgage, but they won’t have ownership of the property or be listed on the deeds. Their sole responsibility is to make the repayments if the borrower defaults. Consequently, people usually become guarantors only for those they know very well, such as parents or close family members.
What’s the risk of losing my deposit?
When you make an offer on a property, the legal and financial paperwork can take weeks to months to process. To safeguard your deposit, send it to your legal company to start the process of exchanging contracts. This guarantees your purchase and protects your deposit if the sale falls through after the exchange.
If the sale falls through before exchange, you might incur charges for any finance and legal work done, but you won’t lose your deposit. It’s rare for a sale to fall through after contracts are exchanged, but if you change your mind and pull out, the seller keeps your deposit as per the contract.
How do I get my deposit back if my purchase falls through?
Once contracts are exchanged, both buyer and seller are legally committed. If the seller pulls out, you’ll get your full deposit back from your legal company.
How can I make buying a house less stressful?
It’s normal to feel anxious about buying a property as a first-time buyer. Fortunately, mortgage advisers are here to help. We provide advice and assist in easing the burden of the buying process, relieving your stress and worries.
If you’d like to discuss buying your first home or any concerns you have, contact us today.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount will depend upon your circumstances.
The fee is up to 1% but a typical fee is £598.
