Money Saving Tips for First-Time Home Buyers


For first time home buyers, the process may seem daunting and unfamiliar which can be discouraging to some. However, with the right tips and advice, you will be on the way to finding the home of your dreams at the best price.

Finding the Right Mortgage

One of the first and most important aspects of purchasing a home is finding the right mortgage. Shopping around for a mortgage should be given a lot of time and careful consideration so you are able to find one that best suits you and your financial situation. Mortgage calculators are a great tool to find out what kind of mortgage to go for and what you can afford.

There are government schemes available for first-time buyers aged 18-39 where they government will cover a certain percentage of a deposit on top of what you have put down. This is an excellent incentive for people to buy properties and help young people get on the property ladder.

Some banks are now offering cashback mortgages where they pay a cash lump sum when you make a successful purchase through them. It is important you shop around and compare fees and rates to find the best value deal when doing this.

When taking out a mortgage you must protect yourself against any unexpected future instances where you may not be able to pay your monthly payments such as illness, injury or redundancy. Mortgage protection is also something that should be shopped around for as the deals are very competitive. Brokers such as make it easy to find the best-value quotes to ensure you are getting the best coverage at an affordable rate.


True Cost

During your purchase, there are many hidden or added fees that you must be aware of in order to calculate the true cost of the property. Fees to take into account are; legal fees – often covered by lenders or can be paid by you, stamp duty – land tax for properties over £125,000, mortgage arrangement fee – to be paid to your financier. Other additional fees to be aware of are home repairs, moving costs, and any décor or installations once you have moved in.

Check Previous Sale Prices

Thanks to the convenience of the internet and sites such as Prime Location, it is simple to find out how much the property you are interested in had sold for in past years. This is ideal if you are curious to see what your potential new home sold for previously or to find out what other homes in the neighbourhood have sold for. It is also a good idea to review a home and the area where the home is located. Tools such as this one will allow you to research area risks that may include flooding and crime.


What to be Aware of

In addition to hidden fees and extra costs, there are other aspects that many first-time buyers are not aware of. Ask as many questions as possible before putting in an offer, about the property and the area, any renovations, the neighbours etc.

Beware of Rip-Offs

For those who are looking to purchase a flat, you must be aware of freeholders (owners of the building) who may charge high or unnecessary fees for maintenance. Freeholders can be notorious for increasing fees or choosing costly service providers. Ask the neighbours and research the property management company to ensure you are not paying more than you should be.

Overall, these tips are major points of what to consider when looking to buy a home and how to best prepare for this complex yet exciting venture. The number one rule of advice is research; make sure you are digging deep into every aspect of the purchasing process to ensure your lifetime commitment is a sensible and happy one.