Introduction

When it comes to buying in 2023, the focus is on affordability and sustainability. With more people working from home and businesses taking advantage of digital technology, the demand for suburban housing has grown significantly.

Additionally, due to an increase in awareness of environmental issues, many homeowners are now looking to invest in energy-efficient homes that will help reduce their utility bills and carbon footprints.

Throughout 2022 house prices have risen and so have interest rates with mortgage lenders. We are hoping both the interest rates and purchase prices will start to decline, this will also mean that monthly repayments with your chosen mortgage company will also decrease.

Property Search

First time buyers face a lot of competition with other potential buyers when viewing properties and making offers on them, you need to make sure you invest your time right when choosing your new home as this is a life long commitment.

If you are interested in a specific property then act fast and put your offer to the selling agent as soon as you can so that they can make the seller aware of your offer amount sooner rather than later. If you are unsure of the value of the properties, speak to your mortgage adviser as we can compare the market value of where you are looking to buy.

If you put an offer to an estate agent that is massively over the asking price that gets agreed upon between you and the sellers then this could ring alarm bells with the mortgage lender if they value the property and the price is lower on their survey. If this happens and you aren't able to renegotiate the price with the vendor then you could be at risk of losing the sale as this is when the sale falls through and the new sale restarts from the beginning.

If the seller asks for an increase on your offer then this is when you may face potential problems unless you can match the price they are after, problems may occur if you haven't got a suitable deposit that falls in line with your maximum mortgage amount that you can borrow.

First time buyers are always more favourable for people looking to sell their home as it tends to be a quicker transaction than someone who is in a property chain. That doesn't mean home movers across England and Wales can't move home as this is still possible because there are people out there who aren't in much of a rush to sell.

The amount of deposit you have will affect the price you can go up to, we will assess your income and monthly commitments as well as your deposit amount. If you need more time to save up more money then you may be better waiting a little longer and coming back to us.

If you are moving home and the new house is perfect for you then it may be a good idea to ask someone in your family to gift you all or part of the deposit as you won't want to miss out on owning your own home if you are ready to make the move.

House prices

If you are looking to buy a property whether you are a first time buyer or home mover, it is important to look at the purchase price, you can discuss this with your local estate agents who have advertised the property. Also, if you speak to a mortgage broker they will advise you on whether it is worth the amount it's valued at, you don't want to be paying more than the property is worth realistically.

To get the house that you want in 2023, it is important to start the process as soon as possible. Researching the local market is essential when looking for a property, so make sure to take the time to compare the prices and services of different real estate agents in your area.

Additional costs

There are other costs involved with purchasing a house or multiple properties, the first possible cost is estate agent fees, some agents offer a free service but not all. An arrangement fee may be payable to the lender and broker if this is in their policy. Some mortgage lenders and brokers don't charge for certain services and come free of charge but you should discuss this with your advisor beforehand.

Once your mortgage application has been submitted, a valuation fee may be payable for the survey to go ahead if this is a part of your chosen deal. If you opt for a full structural survey then this will come at an extra cost as this is a more in-depth survey.

Other costs to consider are some ongoing costs such as the potential need to pay ground rent and/or service charges on the property, this is only payable if the property's tenure is leasehold, we can check the land registry to find this out for you.

Also, buildings insurance and contents insurance is a must when you own your dream home because if anything happens to the property or the belongings inside you would want them protected financially. Different insurance policies offer different coverage which we can review for you.

Additionally, consider the cost of improvements and any building work you may need to do, as this can add up significantly over time. You should also speak to your removal firm if you are using one to see what their prices are for helping you move your furniture and belongings from your current home.

When your chosen solicitor starts the legal process you need to take into consideration the extra costs that come with this and choose a solicitor that fits within your budget, search fees will also be within the costs. If your solicitor has to conduct extra legal work, this could incur further charges.

This is when the solicitor will work to transfer ownership onto you as the buyer, this is when you will exchange contracts. The legal fees will be paid at the end of the transaction, you will receive a receipt and a breakdown of all costs included.

How do I find out if I need to pay stamp duty?

If you are looking to buy over a certain amount then you may be required to pay stamp duty, your advisor will be able to help you with this, here at LTC Mortgages we can use a stamp duty calculator to let you know if you have to pay and how much it will cost you.

Before you look to buy, it is important to ensure that you have a good credit profile, as lenders will conduct a credit check when assessing your application. Additionally, having a steady job or income is essential when house buying in 2023, as this will help you to get the best loan terms and monthly payments.

When buying in 2023, it is important to be aware of the various house buying scams that exist. Be sure to do your research before purchasing a property and pay close attention when discussing contracts with real estate agents. Additionally, check local laws and regulations to ensure that you are buying safely and responsibly.

House buying has certainly changed in the past few years, but with careful planning and research, it is still possible to find an affordable and sustainable house to call home in 2023. By doing your homework now, house hunting can be a positive experience. Good luck!

LTC Mortgages can advise you throughout the process when looking to buy in 2023, contact us today on 0151 662 0188 or email us at [email protected]