First Time Buyers' Guide

Should You Buy And Can You Afford To Buy?

If you're a first time buyer, you'll need all the help and incentives you can get, whether financial or practical, to buy your first home. So just how should you go about making that all important first step onto the property ladder?

By Caroline Bloor

pound coins First Time Buyers' House Guide

Should You Buy A House Now?

You may have noticed that the government, estate agents and new home builders are doing their utmost to persuade you to buy. But don't be pressured into buying now unless you can really afford it. The house price picture is complex, so you need to think about your long-term security.

Can You Afford To Buy Now?

Is your deposit big enough? It's not an easy time to be a first-time buyer - struggling to save for a home in the current financial climate. But unfortunately at the moment it's almost a necessity to have a deposit of at least 10% - and frequently one that's substantially larger than this - in order to get a mortgage (there are some 95% deals still around, but the interest rates may put monthly repayments out of reach).

Can your parents help? Little wonder that 46% of first time buyers under 30 are getting 'substantial' financial help from relatives, compared with just 10% in 1995, according to the Council of Mortgage Lenders (CML). If it's an option, go for it. You'll have a significant advantage. The bigger the deposit the better mortgage rate you'll get.

Could the vendor chip in? 'Or', says Dean Sanderson, Chair of the National Association of Estate Agents, North West. 'If you're struggling to raise a deposit, ask the vendor to pay your deposit and legal fees for you rather than to reduce the price of the property.'

Have you considered the extra costs? Don't forget the deposit isn't the only money you need to raise - you'll need to consider all the costs associated with buying (stamp duty, legal and removal costs, survey and mortgage arrangement fees and buildings insurance).