Navigating the UK's competitive housing market can be a daunting experience for first time homebuyers. To help you get on the property ladder and find your dream home, we've put together this comprehensive guide. It covers everything from budgeting and financing to finding an area that suits your needs and making an offer. With this guide, first-time buyers can feel confident and prepared as they take the steps towards becoming a homeowner.

Always be one step ahead of other prospective buyers when purchasing a property, you are more likely to have your offer accepted by the vendor if you are organised and have your documents ready. Having an agreement in principle in place before you view a property will put you in a good position as you can prove you can afford the property.

The future of homeownership 2023

House prices have decreased within the start of 2023 after seeing multiple increases over the past year. There have been no significant drops in the current market but there have definitely been improvements in housing affordability.

However, current trends show that mortgage interest rates are still increasing as the Bank of England base rate rises and mortgage providers are also increasing their rates in line with this. We can expect rates to decrease in the coming years as they are lower than they were in 2022 but are still higher than they were pre covid.

For more information on house buying in 2023 see our page here

How to prepare for a mortgage in 2023

Preparing for a mortgage in 2023 can seem more challenging than ever with how interest rates are continuing to fluctuate so regularly. If you decide to use a mortgage broker contact them as soon as you can, to start the process.

Having your deposit in place and documents organised will put you in a good position when applying for a mortgage as a mortgage broker will request a variety of documents from you, such as:

• Proof of income
• Proof of address
• Credit profile
• Bank statements
• ID
• Proof of deposit

The lender would also request some of these documents so having them ready will prevent a delay in the mortgage process which is better for you when buying or remortgaging a property.

For more information on the different mortgage types click here

The house buying process

The first step for anyone looking to buy their first home is to assess their budget. Taking into account your income, expenses, projected mortgage payments and any other factors that might affect your affordability should be done before you start searching for a property. It’s important to be realistic and take into account any unexpected costs that might come up along the way, such as additional fees for solicitors or surveyors.

Once you’ve identified your budget, it’s time to start looking for a home. Consider what type of property you need – whether it’s a single bedroom apartment, a terraced house or something more luxurious like a detached property. Also, think about location – would you prefer to live in the city centre or have easy access to the countryside? Doing research online can help identify the right area and properties within your budget.

The next step is to get an idea of what’s available in the market. Look at listings in newspapers and online, attend open house viewings, and speak to estate agents to find out what’s available. They can also provide advice on areas where you should be looking for properties within your budget.

Once you’ve identified a few potential properties, it’s time to make an offer. Before making an offer, though, be sure to get a surveyor’s report on the condition of the property and make sure you secure financing from your lender. Once your offer has been accepted, it’s time for the legal process to begin with solicitors exchanging contracts and surveys being carried out.

Credit profile

It is important to have good credit because this is something every lender looks at and sometimes this can be the deciding factor on whether your decision in principle is accepted by them or not. This will increase your chances of getting a mortgage, it will also increase the number of lenders we can look at when choosing the best deal.

If you have bad credit this will be seen as a higher risk transaction by the lender because they need to ensure you are able to repay your monthly mortgage payments on time every month. You can improve your credit by satisfying/settling any defaults and making sure you pay all remaining payments on time and in full.

If you have several monthly payments for credit cards or loans you can pay some of the smaller ones off to strengthen your credit or close any unused credit cards. Also, avoiding payday loans is the best thing you can do because this shows the lender you have poor management of your money if you use them and they will reject your mortgage application.

For more tips on improving bad credit, visit our page here

Current housing market

The housing market has seen a turbulent period of late, due to the rise of the bank of England base rate and rising house prices making it difficult for those looking to join the property ladder. This situation largely stems from the war in Ukraine, COVID, UK's energy price cap rise and the rise of inflation.

Buyer demand increased significantly during and after covid as people wanted new surroundings and somewhere new to live. During this time it was a seller's market and buyers didn't have much room to negotiate prices as there was extreme demand for properties.

The housing market in 2023 has slowed down and has slowly started to become a buyer's market which is good news for first time buyers. Home prices have reduced even though we are still seeing rising interest rates for mortgages as the Bank of England base right continues to climb.

If you are looking for a mortgage or have any questions call 0151 662 0188 or email [email protected]