Is buying your first home more cost effective than continuing to rent?
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 – money in your pocket, not your landlord’s.
Imagine the holidays you could have…
Buying your first home 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 home the happiest move you can make.
Why should a first time home buyer consider buying 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 your first home?
Believe it or not, now is still a good time to buy your first home – here’s why… why buy now?
What can a first time home buyer expect to drop down as a deposit?
To purchase your first home, you’ll usually need to pay at least 5% of the purchase price upfront as a deposit, as well as covering additional costs such as solicitors’ fees, a reservation fee and stamp duty if your home is priced over £425,000.
Find out more about paying stamp duty on your first home.
There’s also gifted money for a house deposit, which could come from parents or grandparents (a signed letter is required). Our Sales Advisors can explain more. Reviewing your outgoings and saving a larger deposit could help you secure a better mortgage deal.
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)
If you’re a first time home buyer in need of advice about which mortgage to get, we recommend speaking to The Mortgage Brain – one of the most trusted IFAs.
They’ll assess your individual circumstances, earnings and savings to find the mortgage best suited to you. A longer fixed-rate mortgage could offer peace of mind in times of rising interest rates.
Your credit rating also matters. Staying on top of regular payments will put you in a stronger position when applying for a mortgage.
Green Mortgages
The Mortgage Brain works with green mortgage lenders offering lower interest rates and cashback if you’re buying a home with an EPC rating of A–C – ideal for first time buyers purchasing a new build.
Lending Booster
If friends or family want to help, Generation Home allows named boosters to contribute to your deposit or be added to your mortgage, helping you qualify for a larger loan. Boosters can be removed later when you can afford repayments independently.
Ready to buy your first home? Time to make a reservation!
Once you’ve found your dream home, you can secure it by putting down a reservation deposit while arranging your mortgage. You’ll need to submit your mortgage application and be ready to exchange within 42 days.
At Bloor Homes, our Sales Advisors will guide you through every step of the process.
For more information on buying your first home, view our buying guide.
