Struggling to get a foot on (or up) the property ladder? Here's our round-up of Government schemes that could provide just the boost you need

Struggling to get a foot on (or up) the property ladder? Here's our round-up of Government schemes that could provide just the boost you need
Buying your first home this Spring? Give yourself the best chance with these top tips.

1. Be sure you can afford it

Avoid setting yourself up for a disappointment by getting your sums straight first. You’ll need a deposit of at least 5% of the property price – but the more you can put down the lower rate you’ll get on your mortgage.

You’ll also need to raise enough money to cover your legal (solicitor) fees, stamp duty, surveys and moving costs.

Most important of all is whether you’ll be able to get a mortgage. This will depend on a combination of your deposit, salary (or combined salaries if you’re buying with someone else), outstanding debts and credit score.

2. Consider Government schemes

Sums not quite stacking up? The Government offers a whole host of schemes to help first-time buyers ranging from Starter Homes and Lifetime ISAs, to Help to Buy and shared ownership.

3. Secure a mortgage agreement in principal

One you’ve been offered a loan from a bank or building society, get an agreement in principal. This document is free and demonstrates to sellers and estate agents you are a serious contender.

4. Do your homework

Now your budget is established, you can search for homes you can know you can afford. But preparation is key and, as ever, start with location. This is the most important factor as it's the one that can't be changed.

In terms of the property itself, think very carefully about your requirements and narrow them down to must-haves and nice-to-haves. List these down, remain focused on them and your search will be a whole lot easier.

5. Be clever in your online searches

Now get online and start your property search. In addition to the basic price, property type and number of bedrooms, you can refine your search using keywords – outhouse or parking for example. Use tools available such as map search and travel times to specific locations.

6. Get local estate agents on side

It’s not all about online. Estate agents are the gatekeepers to early information on properties, so meet as many as you can face-to-face by dropping into local offices. Building a rapport could mean you hear of crucial developments before other potential buyers.

Communicate clear ideas of what you are looking for and stress you are a first-time buyer with a mortgage agreed and can be flexible on move dates.

7. Be shrewd on viewings

Take your own photographs and use a compass to find out what direction the property or garden faces – south facing is most popular.

Take stock of the natural light levels versus the time of day, check for cracks in walls and keep a keen nose for the smell of damp.

Outside the property, look for leaks or bad guttering. Note how busy the road is, what the parking’s like and the condition of neighbouring homes.

Ask direct questions on viewing, such as if there have been any major works or extensions to the property? The agent is obliged to answer them truthfully – and make notes. If you’re conducting several viewings, it’s easy to get mixed up.

8. Cross reference nearby sold prices

Once you’ve found a property you want to make an offer on check the asking price against that of other homes that have recently sold in the local area. Just punch in the address on

And, while it can help to calculate a cost in '£s per sq-ft' of property, remember this is only a rule of thumb. After all, the calculation alone won't factor in the home's condition, direction of the garden, view, parking etc.

9. Negotiate

It’s still always worth negotiating on the price – as a first-time buyer with nothing to sell, you’re in a strong position.

10. Get ready to go!

Once your offer has been accepted, it’s all stations go. Click here to find out more. https://youtu.be/ok3UW66z8l0

Q1. Will I have a greater chance of being accepted for a mortgage when buying a new-build or older home?

“Mortgage lenders typically favour older homes, as new-builds can be harder to resell. And history has shown they grow in value more slowly. To balance out this risk, lenders tend to ask for larger upfront deposits on new-build homes.”

Q2. How can I be sure I’ll be recommended the best deal – aren’t brokers paid a commission?

“Brokers are paid a commission from the bank or building society when your mortgage application is approved. And the amount of this commission varies.

“However, brokers should not be influenced by this as, due to stringent rules set down by the regulator (FCA), they’ll be held accountable for why that particular lender and mortgage was recommended. They’ll also need to produce an audit trail.

“Brokers therefore select lenders and deals based only on eligibility, suitability and affordability. However, it’s important to bear in mind this might not always be the cheapest rate.

“It’s important to use a broker, like, that deals with the entire intermediary market. This means they compare mortgages from all lenders that work with brokers, giving you the widest possible choice.

“Some lenders though, such as First Direct, Lloyds and Yorkshire banks, are direct-only which means they don’t deal with brokers at all.

“But if the most suitable mortgage is from one of these banks – or it’s a one-off ‘direct-only’ deal from elsewhere – the same rules stand and that’s the mortgage we’d recommend.  You can then bypass us and go direct to the lender to get it.

“Finally, unlike many other mortgage brokers is entirely fee-free to our customers. So, you can be sure you’re getting the best mortgage deal without spending unnecessary broker fees to get it.

Q3. How many times my salary will I be able to borrow?

“These days, mortgage lenders tend to use affordability criteria to assess the amount you can borrow. This involves totting up all your monthly outgoings, and deducting the total from your monthly income.

“Lenders then use the remaining income to work out what size of mortgage you could afford to borrow – although the calculation will be ‘stress-tested’ and based on a higher rate than the one advertised on the mortgage deal.

“This means, if your outgoings are minimal – say £100 a month in credit card payments – you might be able to borrow between 4.5 and 4.75 times your single or household (joint) income. However, if you have lots of monthly financial commitments the multiple could be a lot lower than this.”

Q4: How many years can I stretch a mortgage over?

“Most lenders allow mortgage terms of 35 years with some – such as Nationwide, Halifax and TSB – stretching to 40 years.

“However, your age will be a factor. Lenders will want to see you have cleared the mortgage, typically by age 70 or in some cases (Santander for example), by 75.

“If you want to extend your loan beyond the maximum age limit, you’ll need to prove you’ll have sufficient income once you’ve stopped working – from a private pension for example – which will support both your mortgage repayments and living costs.”

Q5: What credit score will I need to be accepted for a mortgage?

“Most lenders access your credit report through the two main credit reference agencies, Experian and Equifax. With Experian the maximum score available is 999 – but Equifax doesn’t publish a score at all. Lenders will consider the contents of the credit report instead.

“But there is no set ‘score’ which will determine whether you get the green light on your mortgage application. Your credit report is one of several factors lenders will consider such as the size of your deposit, salary, any outstanding debt and how well you manage your bank account.

“It’s useful for first-timer buyers to know that, every time a lender accesses your credit report, it leaves a visible footprint. Too many of these – especially if you’ve been turned down – can have a negative impact on your score which can put off other lenders giving you credit in the future.

“But some lenders, such as Halifax and TSB, carry out what’s known as a ‘soft footprint’ which means the credit search is wiped from your report in 30 days, which can be really useful for first-timers who need to protect their credit reports.”

Click here to find out more. http://eepurl.com/bs3zeH