Welcome first time buyers
Deciding where and how to live, can generate a host of thoughts and feelings. At Bloor Homes, we're here to create a better life experience, when it comes to your first home.
First things first…
Do you rent or buy a house?
Buying a home can save you money. According to Halifax, around £115 per month. That’s £27,600 over a standard mortgage term of 25 years. And money in your pocket, not your landlords.
Imagine the holidays you could have…
Buying might be the biggest financial commitment of your life.
But, how do you go about it? We’ve put together a handy guide to help you through the process. And at Bloor Homes, we’re here to help make buying your first-time home the happiest move you can make.
Why buy a new build?
Because it makes sense. A new build home is designed to cost you less: they’re great for energy efficiency (helpful, given rising energy costs), and they’re fitted with brand new energy-efficient appliances, meaning you don’t need to budget for refurbishments.
Plus, when you buy from us, you will be provided with a 10 year NHBC or LABC warranty that guarantees the quality of build of your home.
And remember, when you buy new, you’re not on your own. In fact, you’ll be one of many creating a brand-new community. Now that’s exciting.
Is now the right time to buy a home?
Believe it or not, now is still a good time to buy your first home, here’s why... why buy now?
How much deposit do I need when buying a house?
You can spend all the time in the world dreaming about a new home. But to get in, your deposit needs to be at least 5% of the purchase price, plus any additional savings you have to cover costs such as solicitors’ fees, possible Stamp Duty (if your new home is priced over £425,000), and the reservation fee (more on that later). Find out about Stamp Duty here.
There’s also ‘gifted money for a house deposit, which could come from parents or grandparents (you would need a signed letter if this is the case; our Sales Advisors can explain more). Of course, one of the first steps is to have a look at your outgoings and see where you can cut back. A bigger deposit will mean getting a better mortgage deal, but you’ll have to decide whether your favourite monthly streaming service survives.
Mortgage in principle
Before you get into the real nitty-gritty of house hunting, you need to see how much you can borrow.
At Bloor Homes, we can put you in touch with a genuinely Independent Financial Advisor (IFA) who will help find the very best financial package to suit your circumstances. The Mortgage Brain, one of our recommended IFAs, who can help you with this. They’ll happily use their expert skills to see what type of mortgage is best suited to you, taking into account your individual circumstances, earnings and savings to do so.
One option could be a longer, fixed-rate mortgage. It’s over more years than some mortgages, but it does offer peace of mind where rising interest rates are concerned; and could be more affordable too.
Something else to consider is your credit rating – it’s important to keep up regular payments like mobile phone contracts or paying off existing loans. If these elements of your life are all in order, getting qualified for a mortgage will put you in a great position to look for a new home and make that reservation.
Green Mortgages
The Mortgage Brain is working with several green mortgage lenders who’ll offer you lower interest rates and cashback if you’re buying a home with an EPC rating of A-C; perfect if are buying a new build. It also means that the rising cost of energy bills won’t be such a sting in the tail when you’re living in a brand new, more energy efficient home.
Get help onto the ladder
If you’ve got a 5% deposit but are having trouble getting more, say ‘hello’ to the government’s Mortgage Guarantee Scheme. It’s designed to help you buy a home of up to £600,000 even if you’ve got limited equity. Lenders participating in the scheme will stump up the rest by offering you a 95% mortgage. Be quick, though - the scheme ends on 31st December 2022.
Lending booster
If you’re lucky enough to have friends or family who want to help you buy, Generation Home can make it happen. It lets named ‘boosters’ (your nearest and dearest) help in two ways: by contributing to your deposit, or by adding them to your mortgage so your combined incomes help you qualify for a larger loan. You can remove them from your mortgage when you can afford the repayments yourself.
Making a reservation
Once you’ve found the home of your dreams, you can buy time to get your mortgage in place by putting down a reservation deposit. There are some conditions, though. To qualify, you have to submit your mortgage application within 48hrs of paying your reservation deposit; you then have 28 days to be ready to exchange. At Bloor Homes, our Sales Advisors can guide you through the whole process and ensure your deadlines are met, to create a better life experience when buying your first home.
For more information on buying your first home view our buying guide
