Buying your first home is a big deal, and many factors impact it. For most first-time buyers, the financial aspects are the biggest challenge and can make the moving process very stressful. Contractors and self-employed individuals are most likely to struggle with mortgage applications. In fact, nearly half of prospective first-time homebuyers have had their mortgage applications rejected.

Photo by Maria Ziegler on Unsplash
Photo by Maria Ziegler on Unsplash

Here are a few ways you can make buying your first home a little easier.

Top up your deposit

House deposits have skyrocketed in recent years, making it difficult for first-time buyers to get on the property ladder. A Lifetime ISA can boost your savings by a maximum of £1000 each year. If you are between 18 and 39, you can open a Lifetime ISA and save up to £4,000 a year to buy a home. The government will add a bonus of 25% each year, equating to a maximum of £1000 every year. These funds can be accessed after 12 months to buy your first home, valued up to £450,000.

Hire a conveyance solicitor

The legal side of moving can be a minefield, so first-time buyers are advised to invest in a conveyancing solicitor. They can advise you on the legal process, manage the transfer of funds, and ensure your property is in good condition. They will conduct property searches to assess everything from the ground surrounding the property to the home’s structure.

Improve your credit score

Your credit history is extremely important when applying for a mortgage. Lenders will look at how you managed borrowing in the past and use that information to decide whether to offer you a mortgage. You can use sites like Experian or ClearScore, to access your credit score and see if there is anything you can do to improve it. Things like making debt repayments on time, closing credit cards you no longer use and being on the electoral register can improve your score.

Government schemes

The government’s Help to Buy Scheme is aimed at first-time buyers. If you qualify for the scheme, you can access an equity loan that puts in 5% of the deposit, and the government loans you 20% free of interest for five years. The second part of the scheme allows first-time buyers to buy as little as 25% of their home and pay rent for the part they don’t own. Government grants can help first-time buyers get on the property ladder and find their dream home.

Choose the right time.

You need to make sure you are in a good financial position before investing in a property. Build up your credit score and increase your savings so that you can buy a property and make it your home.