Buying Your First Home: Tips for First Time Buyers in Norwich

Work Out How Much You Need to Save

As a first time buyer in Norwich, the process of purchasing your first home can be overwhelming. One of the important aspects to consider is saving up for a mortgage deposit. To determine how much you need to save, start by calculating your monthly disposable income.

Deduct your expenditures and monthly outgoings from your income to estimate the amount you can allocate towards your mortgage savings. This will help you set realistic goals for monthly savings.

Typically, when obtaining a mortgage from a high street lender, you will need to provide at least 5% of the property’s cost as a deposit. Some first time buyers aim to save a minimum of 20% or more. Remember, the larger the deposit, the lower your monthly payments will be.

If you have bad credit, your lender may require a larger deposit, usually around 15% to 30%. Saving for a bigger deposit not only gives you access to competitive mortgage deals with lower interest rates but also makes you appear less risky to lenders.

To determine the exact amount you’ll need to borrow for a mortgage, speak with a mortgage advisor in Norwich. Additionally, make sure to set aside some money to cover the additional costs associated with buying a property, such as insurance and cover.

Are there any schemes available?

In Norwich, there are various government schemes available to help first time buyers. One such scheme is the Shared Ownership Scheme, which provides an opportunity for those who can’t afford a mortgage on 100% of the home.

Under this scheme, you can purchase a share of the property (usually between 10% and 75% of the home’s value) and make up the remaining share through rent. As your financial situation improves, you have the option to buy larger shares.

If you are interested in learning more about these schemes, feel free to contact us or book a free mortgage appointment with one of our expert advisors. You can also find additional information on the government OwnYourHome website.

Help From Elsewhere

When buying your first home in Norwich, a gifted deposit from a family member can be a significant help. This type of deposit is given with the understanding that it doesn’t need to be repaid. Consider reviewing your current outgoings, including bills and subscriptions, to find opportunities for saving.

You may discover cheaper deals for mobile phone and broadband packages, or alternative options for leisure services like gym memberships and streaming services. By reducing these expenses, you can free up more money to save towards your deposit.

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Buying with a Friend or Partner

Buying a property with a friend or partner is a viable option for many first time buyers in Norwich. It can help accelerate the process of saving for a deposit by combining incomes. However, it’s important to consider the potential risks involved.

If one person defaults on the mortgage, the other person may become responsible for the full payment. There are different types of mortgages designed for those purchasing with a friend or partner, such as Joint Tenants and Tenants in Common.

These options offer varying degrees of ownership and decision-making rights.

Saving For a Deposit if You Have Bad Credit

Obtaining a mortgage with bad credit is possible, but it often results in higher interest rates, requiring a larger deposit. If you have bad credit, it may be beneficial to focus on improving your credit score before applying for a mortgage. Here are some steps you can take to improve your credit score.

• Register on the Voter’s Roll to demonstrate stability.
• Avoid maxing out your credit cards and pay off the balance in full each month.
• Make payments on time and in full to prove your reliability.
• Build up a credit history by responsibly using credit.
• Close any unused credit accounts to avoid potential fraud.
• Disconnect yourself from any financial ties to others, if applicable.

Our Expert Mortgage Advisors

At UK Moneyman, we understand the challenges of the mortgage journey, especially for first time buyers in Norwich. That’s why we offer a free mortgage appointment with one of our knowledgeable mortgage advisors in Norwich.

You can easily book an appointment through our ‘Get Started’ process on our website. During the appointment, our mortgage advisors in Norwich will provide the support and guidance you need to achieve your mortgage goals.