First Time Buyers Guide
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Your home may be re-possessed if you do not keep up repayments on your mortgage.
You have been thinking for some time now that you would like your own space, you are settling into a relationship or perhaps you are moving to a new job and think it's time to own your own property. Whatever the reason, this is a major step and one not to be taken lightly. The following will give you a little insight into the state of the property market and how it might affect you.
The Property Market for First Time Buyers
Start here
First Time Buyers first thoughts
Last updated 15 March 2009
Property prices have been dropping now for over a year and have not yet found their bottom level. Nobody can accurately predict where that level will be or when it will arrive and it will vary from place to place depending on economic activity within the area you have chosen to live. In recent years, people have become accustomed to property prices always increasing and have tended to view property as a sound investment. Current conditions have proven that to be a myth as property, like everything else, is only worth what someone is prepared to pay for it.
The next problem you will face is finance. Banks used to be free and easy with lending and would give loans to people who quite often, could not afford them. This has changed and the result is that banks and building societies are now very reluctant to lend unless they have proven evidence that the loan is likely to be repaid. Even then, there is simply not enough cash being made available to allow everyone who meets these stringent requirements, to get a loan.
Putting the foregoing into perspective raises a question; is now is the right time to buy? For some, there will be little option but to buy while for others, it could make more sense to delay their purchase and rent on a temporary basis until the direction of the market becomes more predictable. Britain is a nation of home owning people and as this is unlikely to change, owning your own property should continue to make good sense and give you the very satisfying feeling of having achieved something.
The next problem you will face is finance. Banks used to be free and easy with lending and would give loans to people who quite often, could not afford them. This has changed and the result is that banks and building societies are now very reluctant to lend unless they have proven evidence that the loan is likely to be repaid. Even then, there is simply not enough cash being made available to allow everyone who meets these stringent requirements, to get a loan.
Putting the foregoing into perspective raises a question; is now is the right time to buy? For some, there will be little option but to buy while for others, it could make more sense to delay their purchase and rent on a temporary basis until the direction of the market becomes more predictable. Britain is a nation of home owning people and as this is unlikely to change, owning your own property should continue to make good sense and give you the very satisfying feeling of having achieved something.
If home ownership is your target, then do your homework and prepare yourself by following each step of this guide. Research your chosen area and familiarise yourself with property values, house types, special deals from builders etc., and study your own finances to establish what you can comfortably afford. Be prepared for a difficult journey and when you reach the stage of applying for a mortgage, make sure you provide your mortgage adviser with the full and true facts. Many people with debts that will affect their borrowing capacity, think that their debts will go unoticed by lenders. This is simply not the case and if a lender picks up that you have deliberately given misleading information to obtain a loan, at the very least, you will have your application cancelled and you could be blacklisted by all lenders.
Deciding to Buy
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Establishing your needs
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