Published 24 May 2021

How first time buyers can prepare to buy a home in a booming property market

The Current Property Market

The UK property market is booming and the competition for properties is fierce. In some parts of the country, it is common to hear stories of properties being oversubscribed and people making offers above the asking price.

When the property market is this hot, buyers need to be ready to act quickly if they are to secure the keys to their dream home. And if you are a first-time buyer, making sure you are ready to ‘sprint out of the blocks’ is essential. Our trusted friends at SRC Mortgage Solutions offer some expert advice to help first time buyers get ready for the property ladder.

What should buyers be doing to prepare themselves?

In our opinion this means doing as much preparation as possible in advance of a property viewing.

  1.  Obtain a credit report - Even if you think your credit history is good it makes sense to check. If you do uncover any problems, then getting these resolved upfront will put you in a better position when you are ready to move forward.

  2. Make an appointment to speak to a financial adviser - A good adviser, like those on the Peabody panel, should help you work out what you can afford to borrow and obtain an ‘agreement in principle’ (AIP) for you.

  3. Check your affordability - Before you even view a property, most sales agents will want to know that you have the finances in place to purchase, and in some cases may not allow a viewing without evidence of affordability in the form of an AIP.

  4. Factor in extra expenses involved - As well as working out how much you can afford to borrow, it also makes sense to think about the other expenses you will incur. For example, if you are purchasing a new build flat you will need to factor in other costs including service charges and ground rent. And if the property is shared ownership, do not forget to include the rent in your affordability calculations. 

  5. Choose your solicitor - Although you may not have found a property when you do your research it should still be possible to obtain quotes based on an estimated purchase price. And when it comes to affordable housing it pays to use a firm that specialises in this area. Most sales agents will have a list of firms they have approved, or your mortgage adviser may be able to help.

In respect of shared ownership properties, it may prove beneficial to seek advice from a firm that specialises in arranging affordable housing mortgages on these types of properties. Peabody have a panel of solicitors and mortgage advisors we are experts in this area. 

Take that first step on the property ladder

If you are a first-time buyer, you may think the process is daunting and almost impossible to achieve.  However, you do have one advantage over those that already own a home.  With no property to sell you have the advantage of speed, you can be the first ‘out of the blocks’, which could be the deciding factor.

Find Your Home With Peabody

Peabody are one of the largest housing associations in the UK helping many first time buyers purchase homes through Shared Ownership or London Help to Buy. With properties throughout London and the South East, take a look at our property search to find the perfect home for you.

FIND A HOME

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