First time buyer

House auctions

Escalating house prices over recent years have made it difficult for many first time buyers to get on the property ladder, however the possibilities, opportunities and potential of auction properties are open to us all.

We don’t want to overwhelm you with useless information that is not relevant but as you might already be aware, buying at auction is one of the best ways to find a property bargain, and that bodes well for first time buyers. Buying your first home, especially auction properties, can be a daunting prospect, so check out our FAQ's to help you understand the processes involved when buying property at auction.

It has become increasingly challenging for the first-time buyer to secure that initial home. Traditionally mortgage lenders would expect a deposit of at least 10% before offering reasonable mortgage terms in return. But even at the very lowest end of the current market, the prospective home buyer would need to raise funds in the region of £15,000—£25,000 to meet these restrictive criteria. For those at the beginning of a career, or perhaps already with a child or children, this first obstacle may seem overwhelming. But neither is the alternative prospect of long-term renting any more reassuring. In fact the cost of renting property may currently equal the cost of a monthly mortgage repayment, and quite often even exceed it.

Guide for first time buyers

One of the first steps and probably one of the most important is to seek first time buyer mortgage advice. You can find out how much you can borrow and what that will cost you each month. Good mortgage advisors will know about all the UK first time buyer mortgage deals available at any one time. UK Auction List's finance partner, John Charcol can help you arrange finance, if required.

Remember that buying a home will inevitably cost more than you think. A rising cost for many homebuyers is that of mortgage arrangement fees. Lenders offering the best rates can add more than £1,000 worth of fees to deals, or percentage of loan charges which can be very expensive. You will generally be offered the chance to add fees to a loan, this can be useful but be aware you will pay much more then the upfront cost of the fees as interest will be charged on the sum over the life of the mortgage.

Home owner - Additional cost

You also need to be aware of your homes’ running costs. You will have to pay for buildings insurance, life insurance if you have a joint mortgage and/or dependents, contents insurance, gas and electricity bills, council tax and water rates, ground rent and perhaps service charges.

First time buyer mortgages

As a first time buyer, mortgage hunting can seem a little daunting – but not with UK Auction List’s finance partner, John Charcol. They have already checked out the first time buyer mortgage market, finding the best introductory offers, the lowest interest deals and the most flexible options – all from reputable lenders.

To discuss your finance requirements, either e-mail ukauctionlist@johncharcol.co.uk or call 0845 413 1404.