Navigating the mortgage maze: tips for first-time buyers

02/08/2023

Entering the property market as first-time buyers in 2023 is no small feat. Here are our top tips to help you navigate the mortgage maze without losing your head. 

Buying your first home. It’s equal parts exciting and overwhelming, right? Particularly in the midst of current market chaos, that’s for sure. After all, it’s no secret that the property market in 2023 is a complex, ever-changing beast. First-time buyers have a great deal of important things to consider as they prepare to make the big move, and with such a vast amount of information and guidance out there, it can be difficult to know where to start. Thankfully, the b-advised team is here to provide some clarity. So, in today’s blog post, we’ll be sharing a handful of our top tips for first-time buyers looking to enter the market in 2023.

1/ Figure out the sweet spot with your deposit 

As a first-time buyer, there’s no greater challenge than saving up your deposit! 

To access the majority of mortgage options, you must be in possession of a deposit that equates to at least 5% of the total property price. However, the more you can save, the better! A heftier deposit will allow you to access better deals, thus shrinking your monthly repayments and positioning you as a safer and more desirable candidate for a mortgage in the eyes of lenders. So, when you’re planning your strategy as a first-time buyer, take a look at what you currently have saved and consider when you would ideally like to buy. Once you have weighed up these factors, you’ll be able to identify an ideal deposit amount and create a realistic goal for yourself. 

2/ Be realistic about what you can afford 

Committing to a mortgage is no joke. In all honesty, it may well be one of the most important financial decisions of your life! 

So, take some time to crunch the numbers and create a clear picture in your head of what you can afford without overstretching yourself when it comes to your monthly repayments, considering what a good month and a bad month could look like for you financially, and how your repayments would fare under a variety of circumstances. Oh, and don’t forget to account for the associated costs of securing your first home, such as surveys, legal fees and moving costs. It all adds up, after all. 

3/ Explore potential buying schemes

First-time buyers may qualify for certain buying schemes, both private and government-run. 

It’s important to be aware of what you could be eligible for as you start out on the journey to purchasing your first-ever home. Shared Ownership may be one potential option, and you may also wish to explore the possibility of Equity Loans to help with certain costs. 

4/ Be mindful of your credit score

By no means do you need a perfect credit score in order to purchase a home. However, the better your score is, the stronger your chances of approval are. 

To build a healthy credit score, ensure that you are using credit, but never maxing out your limit. Pay off your credit card balance in full each and every month, or at least try to pay off as much as you possibly can above the minimum amount. Make sure you don’t miss any payments, and avoid making too many applications for credit. Over time, consistency and conscientiousness in regards to these things will certainly pay off, and help you to build the healthy credit score that you need in order to access competitive deals on your mortgage.

5/ Take advantage of professional advice 

Thousands of deals, a myriad of potential lenders, a sea of incomprehensible industry jargon and, to top it all off, an incredibly volatile market. Phew. Trying to clamber onto the property ladder is certainly a challenge right now. 

As such, it may be in your best interests to seek out professional guidance as a first-time buyer. By approaching a mortgage adviser, you’ll be able to tap into a wealth of invaluable knowledge and support, equipping yourself with everything that you need to know. Here at b-advised, our expert advisers can help you to make sense of each and every aspect of the mortgage application process, presenting you with the most suitable and competitive deals in line with your own unique circumstances, and providing you with access to exclusive deals that are only available via a broker. 

Struggling to navigate the mortgage maze as a first-time buyer? Friendly, professional advice could be the game-changer you need in order to achieve your home ownership goals. Contact us today.