Working to get your foot on the property ladder in Bolton & Bury is no easy task, but now could be the perfect time to buy your first home.
There’s a lot to consider, like which area to choose and what type of property to buy in Bolton & Bury, but above all else, your budget should be your top consideration. The last thing you want to do is to purchase something beyond your means and end up in a financial crisis.
If you’ve seriously started considering buying your first property, you should also be considering how you can afford it, so here are the best five budget planning tips for first-time buyers from Cardwells Estate Agents.
5 Tips Any First-Time Buyer Should Know
1. Stop renting
Paying rent every month is almost equal to paying monthly mortgage fees, except you’re not gaining anything! It can be especially difficult to save a deposit for your new home if you’re paying so much rent each month. If you are willing to give up your own space for roughly six to 12 months whilst you save your money, you are then likely to have enough for a deposit and be a homeowner much sooner than if you were trying to save money and pay rent. Moving back home with family may sound like a last resort, but you will be able to save a lot more.
If moving in with family is not an option and you must rent, there are ways to work around this so you can still pocket some money for a deposit. You can always find a cheaper place to live, but bear in mind that this may mean a smaller property. You could also consider opting for a house share rather than renting a property of your own to help lower the cost of your rent, giving you extra money to put away for a deposit.
2. Put your savings to work
Why have money just sitting in an account when you could be earning money on those savings? If you have a decent interest rate, you can reach your savings goal faster, but picking the right account is dependent on how you’re saving.
- If you have money to put aside each month and want to set up regular payments, a standard savings account might be your best bet.
- If you need more flexibility with the amount you put away, for example, if you save in lump sums whenever you can rather than on a fixed schedule, an instant access savings account might be the better option for you.
3. Research areas and locations
As a first-time buyer, deciding where to buy your first home is just as important as saving for your deposit. If you haven’t picked the area you want to purchase your new home in yet, do some research to find out what you can afford and if the area fits your lifestyle and needs.
You can speak to our expert team here at Cardwells Estate Agents to help guide your choice, but ultimately you will need to determine which areas fit your budget before anything else. Be sure to check out what the prices are for the type of property you want to buy, as well as council taxes and any other costs that need to be factored in such as travel or parking fees for example. Once you have an idea of what the cost of your property will be, both when purchasing and when actually living there, you can start to properly budget to save for a specific goal.
4. Budget for your monthly mortgage payments
Getting a mortgage means you will be required to pay a monthly amount to your lender to cover the amount you have borrowed, so it’s vital you speak to a lender or financial adviser to ensure affordability. Here at Cardwells Estate Agents we will be delighted to assist or recommend a financial services professional – simply ask us for details.
5. Budget for other home-buying costs
There are more costs to consider once you’ve had an offer accepted on your first home, so you should make sure your budgeting plan includes enough to take care of these when you complete on your first property. You don’t want to end up in a situation where you’re short of cash and are barely making your mortgage payments. These other costs can include:
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Solicitor fees
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Survey costs
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Mortgage arrangement costs
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Estate agent fees
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Buildings and contents insurance
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Furniture and decorating requirements
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Necessary renovations or maintenance
Let Us Help You Find Your Dream Home
We hope you find these five first time buyer budgeting tips helpful. For further no-obligation expert advice please contact the team at Cardwells Estate Agents on 01204 381281 or 0161 761 1215 and we will be delighted to assist you.
Frequently Asked Questions About Buying Your First Home
Can I use any bank account to save my deposit?
The best account depends on how you save. Regular savers might benefit from a traditional account, while those saving in lump sums might prefer an easy-access option. Talk to your bank about the best fit for you.
Should I get a mortgage pre-approval before looking for a property?
Absolutely! Knowing your budget beforehand allows you to focus on realistic options. A mortgage lender or financial advisor can help with pre-approval and ensure affordability.
What are the benefits of seeking independent financial advice?
An independent advisor can provide unbiased guidance on your overall financial picture, including mortgages, savings plans, and investments.
Has anything replaced the Help to Buy scheme for first-time buyers?
There are other government programs and mortgage products available. It’s wise to explore all options with a mortgage lender to find the best fit for your financial situation.
Looking for Help?
Selling property in this area since 1982, Cardwells are the market leading estate agents in Bolton and Bury. We are here to work for you and to help you achieve the best possible price for your home.
Cardwells Estate Agents Bolton and Cardwells Estate Agents Bury are available if you would like more advice on selling your home, or an up to date property valuation. We can provide an accurate valuation of your property for free. Simply complete the form here and we will be in touch promptly, or call our experienced team on 01204 381281 or 0161 761 1215 and request a valuation today.
Cardwells can also introduce you to independent financial advisors to help you find the best mortgage product for your move or remortgage. Just fill in the form here and we will pass your details on.
Cardwells Estate Agents Bolton
01204 381281
[email protected]
Cardwells Estate Agents Bury
01617611215
[email protected]
