Date Published 29 October 2021
5 questions to ask as a first time buyer
Purchasing your first property is probably one of the biggest commitments you will ever make in your lifetime.
With that in mind, we've put together a list of questions you should be asking to make sure that now is the right time for you to get on the property ladder.
1. How much can I afford to borrow?
One of the most important things you will have to decide is how much you can realistically afford to pay out each month towards your mortgage, and approximately how long you want to spend paying off your mortgage. This will determine how much you want to borrow, and can afford to borrow.
2. What deposit will I require?
The minimum mortgage deposit you'll need depends on the lender. Typically, it ranges from 5% to 20% of the property's purchase price. Remember, the larger your deposit, the cheaper your mortgage rate will be.
3. Will I have to pay stamp duty?
The government recently revised stamp duty rates for first time buyers. Here are the current rates:
Up to £300,000 - No stamp duty
Between £300,001 and £500,000 - 5% stamp duty
If your property costs more than £500,000, there will be no first time buyer exemption and the government's standard rates will apply.
4. Are there any government schemes I can benefit from?
Yes! There are plenty of schemes to help you save for your first home, including the Lifetime ISA (LISA), the Help to Buy Equity Loan and the Help to Buy ISA. Check out the government website to find out more.
Although you can no longer open a Help to Buy ISA, if you already have one then you can continue paying up to £200 into it every month until November 2029. For every £1 you put in, you will receive a 25p bonus from the government to help contribute towards the cost of your new home, with a maximum contribution of £3000.
5. What other costs are involved when buying a new home?
As well as your initial deposit and mortgage repayments, you should also expect costs such as survey fees, sales fees, solicitor fees, furnishing and decorating, buildings insurance and removal costs. The good news is that if you choose to sell your home with Marshall Property, we offer FREE valuations and competitive sales fees.
Let Marshall Property help you on your house buying journey
If you're based in Liverpool or the surrounding area, Marshall Property are on hand to help you find your dream first home.
Contact us to speak to one of our friendly estate agents, or visit our city centre or Allerton office today. As one of the leading independent estate agents in Liverpool with over 35 years' experience, you know you'll be in safe hands.
