Six things you need to know if you’re a single first-time home buyer

BUYING a house for the first time can be a daunting process – but doing it on your own can seem even more of a challenge.

Not only do you have to save up for the deposit by yourself, but you have to deal with all the fiddly admin alone too.

Getting on the property ladder can be a daunting prospect for single first-time buyersCredit: Getty

As the property market continues to boil over and Brits lock horns in bidding wars up and down the country, it can seem a tough time to try and get on the property ladder.

Experts have even predicted no homes could be left on the market this summer, as prices rocket to record-breaking highs.

If you’re feeling a little overwhelmed by it all, The Sun has asked property experts for tips on how to get your dream home if you’re a single first time buyer.

From double checking your credit report to getting a mortgage in principle, here are six tips to help you get your dream home all by yourself.

Get a mortgage in principle

A raft of opportunistic buyers have been racing to clinch a deal and beat the stamp duty holiday deadline – saving thousands of pounds.

But the Covid crisis has meant less homes are being put up for sale.

It’s created a perfect storm, causing house prices to soar and properties to sell within just days of being put up on the market.

With such high demand, Quilter financial planner Heather Owen said that many estate agents are asking interested buyers to have a “mortgage in principle”.

This is a statement your lender has written agreeing that they will lend you a certain amount of money for your home – even though the deal has not yet been completed.

Having a mortgage in principle gives agents certainty that you are in a position to buy, Heather said.

“You can get this directly from a lender or bank, or you can engage a mortgage adviser to get one on your behalf,” she said.

“It is always worth remembering that a mortgage adviser will often be able to find you the best deals specific to your unique financial circumstances.”

Make the most of Government schemes

One of the biggest challenges single Brits will face while trying to get on the property ladder is saving for a deposit – but there are plenty of government schemes to help you.

During the Covid crisis, a raft of lenders scrapped handing out 95% loan-to-value mortgages, meaning you’d need enough cash for a 10% deposit at least.

As the average house price is £250,772, according to data from the Land Registry, that means that you would need to scrape together at least £25,000 for a deposit.

That’s tough for many to afford – let alone for those buying alone without another pair of hands helping to save.

But there are schemes backed by the government that you can tap into to drive down the cost of a deposit.

If you’re happy to buy a new build, then you could get up to 40% off the cost of a new build property using a Help to Buy loan.

The Government will lend you up to 20% – or 40% in London – of the cost of the house.

It’s interest-free for the first five years and then you’ll have to pay from 1.75%.

First-time buyers can also apply for the government’s loan guarantee scheme, which launched in April, to slash the minimum amount you’ll need to buy your house in half.

So if you want to buy a house for £200,000, you’ll be able to put down a 5% deposit (£10,000) for it instead of 10% (£20,000).

But Moneyfacts.co.uk finance expert Rachel Springall said buyers should do their research on these schemes.

While a smaller deposit could seem more achievable to afford, house prices could fall and leave borrowers in negative equity.

You could then get stuck with your deal, and the chance to overpay on your mortgage in order to build more equity may be impossible for cash-strapped first-time buyers.

“It’s great to see the mortgage guarantee scheme well under way with some of the biggest lenders taking part, but borrowers would be wise to compare deals carefully,” she said.

Look at your credit score

Your credit score shows how well you’ve managed your borrowings over the last six years, and lenders use it to calculate how risky it would be to give you money.

So it can help you – or hinder you – from getting a mortgage, loan and credit card.

Online mortgage broker First Mortgage compliance director David McGrail said it’s important for single first time buyers to make sure they’ve checked their credit score.

If it’s low, then you might struggle getting a loan – especially as banks will know you won’t have anyone else helping you out on your loan repayments.

“One of the most common issues we come across is defaults registered by mobile phone or utility companies where the customer has missed a payment and not caught up,” he said.

“Settle any defaults and make sure that all the information is correct. Even a £30 default can drastically reduce your mortgage options and increase the interest rate.”

Other ways you can boost your credit score is by getting on the electoral register – which proves to lenders who you are and where you live, making it easier to get credit.

Pay your bills on time, as any missed payments are logged on your financial history that lenders look out.

Try pay down any debt you have – this might put off lenders signing off your mortgage.

Put your job move on hold

If you’re planning on buying a house soon, then banks will want to see that you have a steady and dependable income.

Norton Finance mortgage manager Melanie Whiting said that it could affect your chances of getting a loan if you’ve moved jobs recently.

This is because banks may question whether you can afford your mortgage repayments due to the job shake-up.

This is especially important for single first time buyers to keep in mind, as lenders take into account that it is only them footing the bill on repayments.

“Lenders are likely to take a close look at your employment status, income and history when you apply for a mortgage,” she said.

“They like to see a dependable and stable income, suitable to support your mortgage repayments so it is advisable to plan any job moves until after the process.”

This could be trickier for self-employed people, though, who don’t have this regular stream of regular work.

In this case, Melanie said you should get your paperwork ready – and get familiar with admin.

“You may be asked for bank statements, your last P60 and proof of deposits, to name a few,” she said.

Bring a friend

If you’ve fallen in love with a house you’ve seen, it can be tempting to rush into making an offer in a bid to bag your dream home.

But make sure you bring along a friend or family member with experience of buying a home when you’re organising a viewing to get a second opinion.

Otherwise, you could end up missing major red flags with a property – like single first time buyer Theresa Makombe did.

She put in an offer for her dream home – but a last-minute building survey revealed it contained asbestos, damp and rat droppings.

Affordable housebuilder Pocket head of sales Jenny Anson said: “Around 90% of our residents buy alone – so while it is definitely possible to, we are aware the housing market can feel quite intimidating and overwhelming for a single buyer.

“We always encourage people to bring a friend or family member to a viewing for an objective second opinion.”

Don’t be phased by stamp duty

Part of the reason why the housing market is sizzling at the moment is because buyers are rushing to buy now and avoid paying stamp duty on their property.

Buyers currently do not have to pay stamp duty on the first £500,000 of a home purchase up until the end of the month (June 30).

From July 1, this relief will taper off, and the threshold for paying the tax on your home will nudge down.

While you might think you’ve missed your chance of saving thousands, don’t be off-put buying – you can still make savings on the stamp duty tax.

The threshold is lower for first time buyers compared to those who have bought before.

First time buyers don’t have to pay any stamp duty on properties costing up to £300,000 between July to September.

From October 1, this will taper off further to £125,000.

Estate agent Andrews Property Group chief executive David Westgate said: “Although the full Stamp Duty saving ends in a few days’ time, from July 1 the tapering kicks in and the threshold is more generous for first time buyers.”

He said buyers should not be “spooked” and instead get clued up on what help is available to them when buying their home.