First-Time Buyer

The First-Time Buyer still faces sizeable issues, such as raising a deposit and meeting the strict borrowing criteria. However, much is being done by the government (and possibly family and friends) to help them on the way.

There’s a lot of assistance out there for First-Time Buyers. This is in addition to the government’s desire and support to get more homes built across the UK.

Also, let’s not forget that for some, there’s support from the Bank of Mum & Dad (plus Grandparents and friends). According to Legal & General, this would equate to the Bank of Mum & Dad being a £5.7bn a year mortgage lender! Over a quarter of all buyers (27%) are estimated to have received help from friends or family in 2018, purchasing almost 317,000 homes! It’s not just restricted to first-timer buyers. (Source: Legal & General, Bank of Mum & Dad report 2018)

Where we can help the First-time Buyer

Whether you’re fortunate enough to receive support or are on your own, it’s vital that you take professional advice. Especially if you are a first-time buyer.

We would help navigate you through the affordability, evidencing of income and credit rating hoops. In the process, we would hopefully identify some of the decent deals that are still on offer.

Want a further reason for a first-time buyer to tread this path? Across the UK, the cost of a mortgage on a comparable home is cheaper than renting in the same region. (Source: Santander UK, June 2018)

Credit Rating

The role of a credit score is to try to predict your future behaviour. This means that people who have a poor score may suffer. We can talk through the steps you could take to improve your rating and to make yourself more appealing to the lenders.

Surprisingly though, rental payment history (particularly for those not in social housing) isn’t necessarily reflected in people’s credit reports. However, there now seems to be greater enthusiasm from the credit agencies to include this information. This is likely to benefit some first-time buyers, as their credit score may improve as a result.

Stamp Duty

This tax can amount to a hefty sum, so in England and Northern Ireland, there’s tax relief for first-time buyers up to a purchase value of £500,000. This now also includes those in shared ownership. This means that no stamp duty tax would be paid up to £300,000. 5% would be payable on any applicable portion between £300,001 – £500,000. A similar scheme operates in Scotland.

Please talk to us to see if we can help you (or a family member) step onto the property-owning ladder.

HM Revenue & Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Your home may be repossessed if you do not keep up repayments on your mortgage.

What was annual UK house price growth?