The transition from being a tenant to a first time buyer can sometimes feel a little daunting; like a step into “no mans land”, however there are usually huge rewards for taking this leap.
While there are a lot of common misconceptions about being approved for a mortgage or taking that first step onto the property ladder, most first time buyers are pleasantly surprised by the process.
The old saying “you don’t know until you try” is very true when talking about first time buyers making that first step towards owning their own property.
Benefits of Home Ownership
There are a number of benefits of owning a property – especially compared to renting a home – which people are often unaware of:
- Generally the monthly payment for rent will be higher than it is for a mortgage payment. This is because of market conditions and often you’re paying to cover the mortgage, plus sometimes a letting agent fee.
- If you take a capital repayment mortgage then each month you will own a little bit more of the property.
- Property is an asset, which means it usually increases in value, ensuring not only will you eventually own the property, but your asset / home could be more valuable than when you bought it.
- You will have more freedom and security when owning a property, allowing you to make any changes you like and knowing you won’t be evicted, so long as payments are kept up to date.
- If you are struggling to make mortgage repayments, potentially because you’ve temporarily lost your job, you can request a payment holiday from most lenders. When you’re renting, you must pay your rent and if you fall into arrears these will need to be repaid.
Help for First Time Buyers
There are various different forms of government support schemes available to help first time buyers become home owners.
Government schemes include:
- Help To Buy ISA & Help To Buy Scheme
- Shared Ownership
- Right To Buy
- Rent to Buy
- Lift Scheme
- First time fund
Each of these help buyers in various ways, depending on their circumstances, and the majority of first time buyers aren’t aware they could be suitable for this help.
Free First Time Buyer Mortgage Advice
If you would like more information about applying for your first mortgage or just find out if you are likely to be accepted, call us today.
You can speak to a mortgage adviser by calling us on 0800 112 3690 and we will be happy to help.
We regularly speak to people and help them with a plan to become homeowners and we would be delighted to talk to you too about your options.