November 26, 2012  In Uncategorized One comment

Should You Buy A House Now?
You may have noticed that the government, estate agents and new home builders are doing whatever they can to persuade you to buy. But don’t be pressured into buying now unless you really can afford it. The house price picture is complex, so you need to give some serious thought to your long-term security.

Can You Afford To Buy Now?
Is your deposit large enough? It’s not an easy time to be a first-time buyer making any freehold acquisitions- struggling to save for a home in the current financial climate. Having said that, just at the moment it’s practically a necessity to have a deposit of at least 10% – and frequently one that’s substantially larger than this – in order to get a mortgage (there are some 95% deals still around, but the interest rates may put monthly repayments out of reach).

Can your parents assist?
It’s not surprising that 46% of first time buyers under 30 are getting ‘substantial’ financial help from relatives, compared with just 10% in 1995, according to the Council of Mortgage Lenders (CML). If it’s an option, then you should perhaps go for it. You’ll have quite a significant advantage. The bigger the deposit the better mortgage rate you’ll get.

Could the vendor contribute?
Or, if you’re struggling to raise a deposit, not a lot of people realise that it’s not unusual to ask the vendor to pay your deposit and legal fees on your behalf, rather than to bring down the price of the property.

Have you given full consideration to the extra costs?
Don’t forget the deposit isn’t the only money you need to raise when you buy freehold – you’ll need to give some consideration to all the costs associated with buying (stamp duty, legal and removal costs, survey and mortgage arrangement fees and buildings insurance).

All of the above “problems” can be sorted out with a little research and forethought and before you know it you will be holding the keys of your own property. Click here for more help and information.