- Data collected by Hodge shows that 1 in 7 of first-time buyers use a gifted deposit in order to get on the property ladder.
- Property experts say being aware of the additional costs involved is key.
- James Enos, National Account Manager at Hodge, shares his top FIVE tips for first-timebuyers looking to get onto the property ladder.
First-time buyers are being faced with unexpected costs, with the Stamp Duty threshold now at £300,000 in England and interest rates at some of their highest levels in recent years, making buying a property for the first time increasingly challenging.
New data from Hodge shows that 1 in 7 of first-time buyers now use gifted deposits to get on the property ladder. In London, 13% of first-time buyers are over the age of 45.
James Enos, National Account Manager at Hodge, gives his top tips for first-time buyers wanting to get on the property ladder.
1. Get your finances in order early
“Before you even begin looking at properties, it’s important to know where you stand financially. Our recommendation is to have a clear picture of your income, savings, and monthly outgoings so that you can quickly find out exactly what you can afford.
This will help you establish a budget and determine how much you can realistically borrow. A strong credit score is vital too—ensure your credit report is up to date and address any issues early on.”
2. Shop around for mortgage products
“There are numerous mortgage products on the market, and it’s important to understand the different options available to you. Fixed-rate mortgages, variable-rate mortgages, and government-backed schemes like Help to Buy and Shared Ownership may all be relevant, depending on your circumstances.
First-time buyers should always seek advice on the best mortgage product for their needs, many may not realise the potential benefits of available schemes or how different mortgage terms can impact monthly repayments over the long term. It’s worth exploring every option as there may be something you wouldn’t have thought about without doing your research.”
3. Save for a larger deposit
“While some government schemes allow first-time buyers to purchase a home with a small deposit, we recommend aiming for at least a 10% deposit. The higher your deposit, the better the interest rates you can secure, and the less you’ll have to borrow.”
4. Don’t forget about the additional costs
“The cost of buying a home goes beyond just the deposit and mortgage repayments. Stamp duty, legal fees, surveys and moving costs can quickly add up. Ensure you budget for these additional expenses, so you aren’t caught off guard.
Many first-time buyers overlook these additional costs, which can come as a surprise. It’s essential to work with a trusted advisor to help calculate these expenses ahead of time so they don’t become a financial burden later.”
5. Consider your long-term plans
“A home is a long-term investment, and it’s important to think about your future before making a purchase. Will the property accommodate your needs in the coming years? Is the area likely to experience growth, or will it suit your lifestyle as you move through different life stages?
It’s important to look beyond just the immediate appeal of a property; you should ask yourself if this house will serve your needs for the next five to ten years.”
While getting onto the property ladder can feel daunting, the right preparation and support can make all the difference.
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Notes to editors:
About Hodge:
For more than 50 years, Hodge has been a trusted provider of financial services across the UK.
From helping individuals save and purchase homes to supporting businesses with tailored lending solutions, Hodge has consistently demonstrated its commitment to enhancing financial well-being.
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