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Why Now Is The Right Time To Buy A House – If You’re A First Time Buyer, Don’t Wait To Get On The Property Ladder!

If you’ve been saving towards your first home for a while, or been thinking of buying but are daunted by taking the leap, we’re here to help.

 

Want to know how much should you be putting down towards a deposit, what’s happening with property prices right now, or when you’ll know which is the right home for you?

 

Beewise are here to guide you through the whole process from start to finish, advising on all aspects of your homebuying journey.

 

And in this blog post we’ll also talk about why you don’t need to wait for interest rates to reduce – giving real life examples – how to know if you can make an offer under asking price, and more.

 

If you’re already out viewing properties, need a mortgage in principle to get started, or just want to chat about your situation with your local Beewise mortgage advisor, get in touch now!

 

Click here to arrange a call or ring 01934 204841 to get tailored advice on your situation today. Or, scroll down to read more.



How much deposit should you put down on a property?

Good question! If you were asking how much deposit can you put down on a property, the answer would be slightly different.

 

Lots of lenders offer mortgage deals where you can put down as little as 5% deposit, and there are even options out there where you pay 0% deposit.

 

If that’s something that appeals to you, give us a call on 01934 204 841 to chat to your local advisor today.

 

As to the amount you should put down, we’d say there isn’t a set amount you should be aiming for.

 

It’s true that if you have a bigger deposit, you could have access to better interest rates.

 

For example, on a £250,000 house, putting down a 5% deposit (£12,500) could get you an interest rate of 5.89% at today’s figures, depending on your personal circumstances and affordability.

 

With that same lender, putting down a 10% deposit would give you an interest rate of 5.59%, meaning a different of £115.11 in your monthly payments.

 

But you need to remember that with a bigger deposit you’re borrowing less money, so monthly payments will always work out cheaper anyway.

 

If we look at the same lender again, putting down a 15% deposit – £37,500 – gets you an interest rate of 5.49%, so not a huge difference.

 

And, different lenders change their rates at different deposit amounts, so while one might offer a cheaper product with a 15% deposit, another want a 20% deposit before anything changes.

 

This is why we recommend talking to a Beewise mortgage advisor. We’ll advice on your current situation, letting you know whether saving that extra deposit would really make a big difference.

 

It’s also worth considering that if you’re renting, every month spent saving is another month where you’re paying a landlord rent.

 

If you could be paying off your own mortgage instead, it makes financial sense to buy a property sooner due to the money you’ll save on rent!

 

Is now the right time to buy a house?

Like most things in life, there’s never a perfect time to buy your first home! But, the property market is fairly stable at the moment.

 

By that, we mean that property prices aren’t particularly high or low, and there’s no predictions of any major changes over the next few months.

 

Even with changes in the wider UK economy due to the general election, we’ve definitely seen a drop in the hectic nature of homebuying over the last 18 months.

 

Depending on the area you live in, property sales are returning to a more ‘normal’ timescale, giving you the chance to book second viewings and have time to think before making an offer.

 

So overall, we’re pleased to announce it’s positive news for the housing market, and as good a time as any to buy!

 

If you are thinking of buying your first home, give us a call on 01934 204 841, or email to discuss the area you’re looking to purchase.

 

Your local Beewise advisor will have a great relationship with lots of estate agents, so can give more tailored advice to your situation.

 

Why you shouldn’t wait for interest rates to drop

There’s been talk since the start of 2024 about mortgage interest rates dropping, and it was originally predicted that the Bank of England would be bringing down the base rate too.

 

However that hasn’t happened so far this year, and there’s a lot of uncertainty around whether we’ll see a base rate cut before mid September now, due to the election.

 

When the base rate falls it can help to reduce swap rates, the rate at which some lenders secure money for their fixed rate mortgages.

 

Swap rates are based on what the markets think interest rates will be in the future, so if they think they’ll be lower, some mortgage lenders lower their rates too.

 

We could see the mortgage market settle depending on the election outcome, but those holding out for lower mortgage rates in 2024 may be disappointed.

 

Current market outlooks say they’re unlikely to reduce much further this year, even if inflation and the base rate come down – there would need to be significant reductions to see any major changes.

 

For longer term predictions, check out our blog post on the latest with mortgage interest rates.

 

Our opinion is to just go for it. Interest rates will always go up and down, but the sooner you buy your first home and start making those payment, the sooner you can become mortgage free!


When will you know you’ve found the right home?

This is a difficult one as there are so many factors involved. What does the right home look like for you? And are you being too rigid around what you want from your first home?

 

It’s great to have a list of things you want in a property, but generally the more you view, the more this will change.

 

You might start out thinking a certain area is right for you, or a certain number of bedrooms, but once you get looking you may be more flexible.

 

For instance, having a spare bedroom to use as an office might not be a priority if there’s a larger garage, or suitable space downstairs.

 

Or, you could be happy to sacrifice that dream kitchen-diner for a house with separate rooms you can convert further down the line.

 

Sometimes it can go the opposite way though, especially when buying your first home. The more you look, the more you add to your must-haves list, and it’s harder to part with those savings.

 

Buying a home is a huge decision, whether you’re a first time buyer or an experienced home owner. And, it’s only natural to question whether you’re making the right decision.

 

However, no property is going to tick all those boxes. And, your first home doesn’t have to be your forever home!

 

It can easily be your stepping stone onto the property ladder, fitting you for the next few years until you’re able to move onwards and upwards.

 

We’re firm believers in trusting the gut feeling you get when you find a house you love. And while it’s important to weigh up those practicalities too, that’s what your Beewise advisor is there for!

 

Use us as your sounding board to ask those important questions, and trust that we’ll help guide you in the right direction. 

 

Can you offer under the property asking price?

Once you’ve decided to take that leap and make an offer, the next step we always go through with you is: How much?

 

If you’ve endlessly Googled this, you might have come across suggestions such as 5% under the asking price, or a minimum of £10,000 less, but it’s not as straightforward as that.

 

We always recommend asking the estate agent how much interest there’s been in the property.

 

For instance, if they’ve had 10 viewings already, and 5 of those have offered, there probably won’t be much room for negotiation.

 

Similarly, if a property’s just come on the market, it’s likely the seller won’t take much under the asking price. They’ll usually want to hold out and see what other interest they’ll get.

 

But, there’s no harm in making a lower offer. We’re often asked if this’ll harm your chances of buying somewhere, or if you won’t get a second chance.

 

The truth is, the worst the owner can say is no. Sometimes they’ll come back with a helpful guide, e.g. “We won’t accept less than £240,000”. And, sometimes they don’t.

 

Either way, putting in an offer is a good way to start the negotiation process, and to find out the seller’s thoughts.

 

The estate agent may help guide you on this, but generally they won’t give too much away as they’re acting on behalf of the seller. And, they can’t legally disclose any other offers made.

 

That’s where we come in handy! Not only can we advise on the right offer for your situation, we’re happy to put it to the estate agent on your behalf.

 

With years of experience around buying properties, we’re happy to liaise with the estate agents for you if you’re not overly confident in this area.

 

And, as your local Beewise advisor would have already calculated your budget, you’ll have a clear picture of what you can and can’t go up to.

 

Next steps? Contact Beewise!

If you are thinking of buying, knowing how much you can borrow means you can make an informed decision.

 

So, contact Beewise today and we’ll get you the maximum available from a wide range of banks and building societies across the mortgage market.

 

We’ll also get you that all-important mortgage in principle with a lender, as there’s no point saving towards a home or looking at properties if you haven’t done full affordability checks first.

 

While online calculators might seem handy, they won’t take into account certain outgoings and income, or your credit file, so it’s always best to get accurate figures.

 

Who knows, you could even borrow more than you thought by using Beewise!

 

Plus, we’ll work out potential monthly payment options, advise on deposit size, other buying costs you might incur, and more.

 

Whether you’re ready to start looking now, want an idea of what to work towards, or need to remortgage in the next 6 months, we’ll take you through your options step by step with award-winning advice and 5 star service!

 

To get in touch with your local Beewise FS Ltd advisor, click here or call 01934 204841. And, click here to check out our 300+ 5 star customer testimonials.

 

With evening and weekend appointments available, we’re here to make your homebuying journey stress-free, plus save you time and money.

 

 

Looking for more expert advice? Check out these other helpful blog posts!

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