First Time Buyers Myths

Buying property is difficult and first-time buyers face even more of a challenge when looking to step on to the property ladder. However, first-time buyers will hear many myths regarding buying property and it is important to be aware of the realities of buying a home. It isn’t always easy but equally, many of the horror stories and urban legends associated with the property market for first-time buyers aren’t always true. At Gareth James, we are on hand to help you buy property, and we aim to burst some of the more common first-time buyers’ myths.

You won’t be able to afford a down payment – MYTH

The larger the deposit you can save, the easier it is to obtain a mortgage. This is true and the more expensive the property, the more money you will need to save in order to afford the deposit. However, it is a myth to say that first-time buyers will be unable to afford a down payment.

There is a wide range of mortgages to choose from and 5% deposits are available for many first-time buyers. There is also an increasing range of schemes aimed at helping buyers save for a deposit, so don’t let yourself be put off by the need to save a deposit, you can save the money you need to make your down payment.

I have a poor credit score so cannot get a mortgage - MYTH

It is fair to say that having a credit score and history makes obtaining a mortgage easier. However, just because you have a poor or less than perfect credit score doesn’t mean that you cannot obtain a mortgage.

There is a wide range of mortgage options to choose from and just as importantly, you will find that there are many mortgage lenders, all competing against each. This means that there will be mortgage lenders looking to appeal to different areas of the market, and you may find an appealing mortgage offer, even with your less than perfect credit score.

You can also be proactive in improving your credit score. There is no way to magically improve your credit score overnight but there are many ways you can positively impact on your credit score. Making many minor changes over a period of time will help you to present a much more attractive credit score to lenders, helping you obtain the mortgage that is right for your needs.

It is cheaper to rent – MYTH

There will be some rental options that are more affordable or cheaper than paying a mortgage, but this doesn’t apply in every case. There are some mortgage options, and properties, that will see you save money each month.

Also, don’t forget that when you rent, there is no long-term benefit or gain from renting, once the money has been paid for the month, it is gone. However, with a mortgage, you are building equity at your home, which will provide you with a benefit in the long term. It is this increasing equity that justifies the higher cost for many property owners, if you do decide to buy as opposed to rent.

Obtaining a loan is challenging and a lengthy process – MYTH

Clearly there needs to be procedures in place when applying for a mortgage. This is likely to be the biggest purchase a person will make in their life, so there is a need to ensure that everything is in place and correct. However, with online processes, the mortgage application process is becoming easier to manage and swifter to conclude. If you are putting off applying for a mortgage because you are concerned about the time involved with the process, don’t be, it is simpler and easier than you may think.

I won’t be able to afford the monthly payments – MYTH

It is natural to be concerned about finding the money each month to pay off a mortgage and meet the bills associated with homeownership. However, with proper planning and budgeting, you should find that paying off a mortgage is no more challenging than paying rent each month. It is essential that you calculate your budget and know what you can afford to pay each month.

This should be at the forefront of your thoughts when looking for property and arranging a mortgage. However, when you know what you can afford to pay each month, fitting your expenses into this amount is straightforward, so you should be able to afford monthly mortgage payments.

We know that getting on to the property ladder is challenging, but you shouldn’t let first-time buyer myths put you off. If you need any guidance or assistance when getting on to the property ladder, contact Gareth James and we will be more than happy to help.

Posted:03/22/18 First Time Buyers Myths Tags: First Time Buyers, Myths, Property | By GarethJames
Search News
Categories News
IE8 Alert! Cookie Alert!

To get the best possible experience using our website we recommend you upgrade to a modern web browser. More info