The first step to buying a house is to start saving!
Getting onto the property market can be tough, especially if you are a first time buyer planning to buy a property in London.
The average starter home price in London is at a high of £215,000. This means that first time buyers in London would need to arrange for a deposit ranging between £10,750 to £43,000.
A deposit on a new home can range from 5% to 20% however the more you save for the deposit the easier it will be to get a mortgage as it affects both how much you can borrow, and what interest rate you can borrow at.
Lenders have strict checks on whether you can afford the mortgage or not. They will ask for evidence of outgoings and proof of income. Lenders will check if you can survive the increase of interest rates or change of circumstances such as redundancy.
It will be handy to keep evidence such as household bills, other living costs, bank statements and pay slips available and try get written agreement from your lenders so that estate agents know that you are serious to purchase.
You will need to consider if you have the budget to cover the other costs involved in buying a house too. These costs are:
What type of property?
You will need to decide what type of property you want to buy. Whether you want a Freehold or Leasehold property. If you are buying a flat then it is likely to be leasehold or if you are buying into a share of a freehold and if you are buying a house then it is likely to be freehold.
Putting in an offer
It is essential that you research how long the house has been on the market and whether other offers have been made so that it helps you determine what offer you should make.
For more information about buying property in London contact Rebecca GunnTalk to our legal team
The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.