Getting on the first rung of the property market has become increasingly more diffcult with the reduction in available mortgages for the first time buyer. So what can a first time home buyer do to make life easier for themselves? The obvious answer is to buy "down market" but that is rarely acceptable. I would usually suggest the following:
- Consider buying a property with someone else if you can't afford to on your own.
- Shop around for the best mortgage lender and product for you.
- Get a credit history by using your credit card.
- Negotiate on the selling price.
- Consider buying a property with someone else - If you can't afford to buy alone then perhaps consider buying with a friend. Two incomes will be better than one.
- Shop around for the best mortgage lender for you - If a lender will not give you what you want then consider shopping around. Thus, approaching a mortgage broker who can search the whole marketplace will save you the time and hassle of approaching different lenders yourself.
- Get a credit history - It can sometimes be detrimental if you don't have any track record managing credit. If you don't have a credit history then you may have reduced credit worthiness. Be careful not to miss payments on your credit cards so that you do not adversely affect your credit history.
- Negotiate on the selling price - Please realise that this is probably the one and only time you will be a first time home buyer. You are not in a chain. People selling houses are usually delighted to talk to first time home buyers because of the absence of a selling chain. So always seek a discount.
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