Getting ahead in today’s property market

Activity within the first time buyer market is expected to accelerate over the summer months, as lenders begin to re-introduce more accessible mortgage products and reports of renewed optimism and improved affordability infiltrate the market.

However, email4property.co.uk, the UK’s largest online network of estate agents, advises first time buyers to follow a series of steps to ensure they are in the best possible position to secure their first home:

Work out how much you can afford
Before starting your search for a new home, speak to your bank or a mortgage broker to work out how much you can afford. It sounds simple but too many people start searching for a home in the price bracket they think they can afford, without finding out first if this is realistic. Today’s first time buyers are likely to need a minimum of a 10% deposit on top of additional funds (typically between £2,000 - £5,000) to cover expenses from legal fees to stamp duty and survey costs.

Check your credit rating
With the banks maintaining a very cautious approach to lending, ensuing that you have a good credit rating is vital when looking to secure a mortgage. Checking your credit rating is relatively easy through services such as Credit Expert from Experian. This service not only provides you with your credit score, but it also offers advice on how to improve it – from making sure all credit card payments are made on time to ensuring you’re on the electoral roll.

Get a mortgage offer in principle
A buyer who has already secured a mortgage in principle is in a much stronger position to negotiate and could be at an advantage should they be competing with other potential buyers. An offer in principle will also reduce the chance of disappointment further down the line, providing a much stronger chance of successfully buying a home of choice.

Don’t purchase a home without getting a professional survey
Unless you’re buying a new home, which will come with a typical 10-year warrantee, it is recommended that you get a homebuyer survey. The homebuyer survey gives a good indication of the state of the property and its level of repair and maintenance. It should also ensure that you are not going to make any unwanted discoveries about the condition of your home, after you’ve bought it!

Read your PIQ
Ask to see the property’s PIQ. The Property Information Questionnaire (PIQ) is a new document, contained in the Home Information Pack (HIP). Anyone putting their home up for sale on or after 6th April this year is required to complete a PIQ, before their home can be marketed. The PIQ gives you information on the history of the property from any previous damage caused by flood or fire to useful information on parking allocations and if leasehold, typical management fees and ground rent charges. Every buyer is entitled to view this information and it can prove extremely helpful in the decision making process.

Steve Lees, Head of Marketing at email4property.co.uk, comments:

“With property prices at their most affordable for a number of years, now is proving an excellent time for first time buyers to secure their first home. While lenders are taking a much more cautious approach, there are still some good deals out there for buyers who are able to provide a reasonable deposit.

“As first time buyers begin to re-enter the market, this will have a positive knock-on effect all the way up the ladder, providing a much needed boost in housing market activity.”