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Q&A for First-Time Buyers

If you’ve decided it’s time to purchase your first home, then congratulations are in order. But before you can celebrate, you have to actually purchase your new property. And before you do that, you might have a lot of questions about how the whole process works.

This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

After working with first-time home buyers for years, we’ve noticed many have some of the same questions.

Here we answer some of the most common questions asked about home-buying.

What kind of mortgage should I look for?

The most common mortgage periods are two, three, and five-year fixed-rate mortgages. Currently, the rates for both kinds are similar terms and conditions. But if your goal is to keep your monthly costs low, a short-term deal will usually suit you better.

Keep in mind, though, at the end of the initial loan period, you will automatically be moved to your lender’s standard variable rate, which will most likely be higher than your previous rate. So, if you go for a short-term loan, after less than two years, you’ll need to begin the remortgaging process which can be just as involved as an initial mortgage search.

You might be in a better place financially than when you first took out a mortgage because of the equity you’ve built up in your home, making you eligible for better deals or products, but there’s always the possibility that your term will end during a period of time where remortgaging just isn’t in the cards for one reason or another. It will all come down to your individual situation and how much you can afford.

Should I buy a rental property just to get on the property ladder?

It might be tempting to get on the property ladder any way you can, but if you purchase a home with the intent to let it out, you’ll be looking at a special kind of mortgage that pertains to buy-to-let properties, which have different requirements such as a higher deposit and proving that the rent you’ll bring in will more than cover the mortgage payments. You’ll also be subject to stamp duty if you purchase the property after September.

How much should I budget for fees and other costs?

How much you’ll need to cover the costs associated with buying a property will depend on where the property is located as well as the cost of the home.

Of course, you’ll need the initial deposit and money to cover stamp duty (if applicable) – although in some cases you can at the stamp duty to your mortgage. You’ll also need to consider legal fees, surveys or homebuyer reports, and removal expenses. These items alone can cost a few thousand pounds. And if your home also needs any kind of repairs or upgrades, get ready to shell out even more to make your house a home.

Make a list of all the costs you foresee and speak to your financial adviser about your specific circumstances to help gauge a true idea of costs.

Why should I enlist professional help?

Buying a property is one of the most important purchases you are likely to ever make, but it can be a daunting prospect to go it alone. Working with a professional who knows the different types of mortgages and has relationships with lenders will help ensure you get the best deal available.

Dental & Medical Financial Services provides specialist professional advice to make the whole process simple and stress-free. Get in touch with us to get started on your property search today.

Planning for your first home?
Mortgages | Buy to Let | Property | Mortgage Planning |

Dental & Medical Financial Services have been helping doctors and dentists with finding low-cost mortgages for your home and investment properties for over 25 years.

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Call Darren to discuss your options.

Tel: 01403 780 770


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