On November 2nd, the Bank of England raised interest rates from 0.25% to 0.5%, the first rise for over a decade. According to UK Finance, 2.6 million first-time buyers will be experiencing their first ever rate rise following last week’s events. We understand, the idea of a rise may seem daunting, we get it, but the rise shouldn’t put you off purchasing a property. There are still some great deals to be had, and whilst we’ve just had a rate increase, there really is only one way that rates are going to go .. and that is up!
Here at First Financial Solutions we will advise you on the whole process and help scour the market to help find the best, suitable deal for you.
Here are our top tips for when you’re ready to take the plunge.
Consider all additional costs
Yes, the property will be your biggest purchase yet, but don’t forget about all those additional costs that you have to pay before settling into your new home- they add up! It’s no good saving a deposit and then figuring out you cannot cover all the other hosting costs. Consider these:
- Solicitor fees
- Removal costs
- Survey fees
- Building and contents insurances
- Stamp duty
- Mortgage arrangement and valuation fees
Saving a deposit
Prior to house hunting, you will need to save for a deposit. Usually, you will need to save at between 5% to 20%. There is no standard amount to save for a deposit. But do bear in mind, having a favourable deposit means you could be opening more opportunities from lenders.
Ask numerous questions
This isn’t just another purchase, this will be one of the biggest purchases you will ever have to make. It’s a big commitment, so, make sure you get it right. Whilst all properties may seem perfect, there is often something to hide. Find out about the neighbours, examining recent renovations or even how long the property has been on the market.
Book several house viewings
You may think viewing your potential house just once is enough because you get ‘that feeling’, but it’s not. Different times of the day can change the way you look at a property. If your first viewing was during the day, whilst everyone is at work, you are oblivious to how noisy and busy the neighbourhood gets when rush-hour kicks in.
Use a mortgage broker
Of course, we would suggest this, but trust us, it is crucial that you advise a mortgage broker like us if you’re a first-time buyer. There are a wide range of mortgage options you could choose from, which can be overwhelming for first-timers. That’s why we are on hand to scour the market and find the perfect mortgage for you.
Don’t fear the interest rates! If you are ready to make the leap towards being a first-time buyer, then contact First Financial Solutions today. We offer impartial advice and support on securing your first mortgage. Call us today on 01639 262222 or click here to email us.
* Your property may be repossessed if you do not keep up with repayments on your mortgage.