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Getting on the property ladder

Helpful tips to help you when buying your first home

Buying a home can be a daunting time, wherever you are on the property ladder. As a professional you might feel that you haven't got the time to shop around for a better deal.That's where Wesleyan can help. We'll be on hand to help with your application every step of the way. There are several things you'll need to consider before you start.

  • Plan your budget: Work out where your money is going each month, as this will help decide how much you will need to save towards buying your home. Writing a list of your expenses will also highlight areas where you may be able to cut back and save. It's also useful to start thinking about any new expenses you may have such as council tax and utility bills

  • Know your rights: Be confident when dealing with sellers, estate agents solicitors, builders or other parties who may be part of the process when buying a property. Seek advice if necessary and get personal recommendations

  • Manage your debts: The interest paid on what you borrow is typically higher than the interest you get on savings accounts. If you do have any loans or credit cards it's important to pay these off as quickly as you can. You may look at getting a secured loan to consolidate your debts and pay it off quicker

  • Save for a deposit: In the current economic climate lenders are expecting buyers to put down a large lump sum as their deposit. When you start saving you should try to find a good rate which will help your savings grow quickly. A Cash ISA is a great way to start saving, so ask your Financial Consultant for details.
  • Options: Think about the different options you have, e.g. part buy/part rent schemes

Getting a mortgage - What types of mortgage are there?

There are generally two main ways you can pay off your mortgage - repayment (where you pay off the capital and interest) and interest-only (which requires you to fund another product that will pay off the capital). Different mortgages have different features and interest rates so it's worth speaking to a Financial Consultant to find out which is the best for you.

How much will it cost?

This depends on how much you borrow and in what way:

  • Fixed rate mortgage: offers security for a first time buyer because the rate is fixed each month and so you can budget better
  • Variable rate: the rate is based on the Bank of England base rate. At the moment this is low and therefore is usually cheaper but it could go up again
What to borrow?

This depends on individual circumstances and you should look at your income and expenditure to decide on how much you can afford.

Shop around

There are many mortgage providers out there. Wesleyan can help you search the market for the best deal for you.

Explore your options

Getting a mortgage is not your only option, below are some other alternatives for buying a property:

Adverse credit mortgage: If you have previously had financial problems and struggle to get a mortgage, you may be eligible for an adverse credit mortgage.

Home purchase plans: If you would like to buy a home in line with Islamic law a home purchase plan would be suitable which Wesleyan can help you find.

Expenses to consider:

Stamp duty: This is a government tax paid when you buy a property over a certain amount. The amount of tax is a percentage of the property value. At the moment, buyers do not have to pay stamp duty on properties under £125,000.

Solicitor fees and surveyor

When buying a property you will have to pay for a solicitor to oversee the legal process, as well as a surveyor. There are different options available for the survey depending on your budget and the age of the property you are buying.

Protect yourself and your home

Having the right protection in place is very important to protect yourself and your home. You should consider having the following:

  • Mortgage, life and critical illness cover: When arranging a mortgage, it is important to arrange the right protection in the event of death or critical illness. Your local Financial Consultant will be able to advise you on the best options for you
  • Income protection: If you are unable to work due to an accident or illness you will still be expected to pay the mortgage. If you do not your home will be at risk of being repossessed.

    Wesleyan provides income protection that will help to repay your mortgage until you are able to return to work.
  • Building insurance: This covers your home in case the building is damaged
  • Content insurance: This covers the loss or damage to the contents of your home, due to theft or accident

Wesleyan can help you find the right mortgage for you - speak to one of our Financial Consultants today.

After the big move

Review your budget again:
Once you have moved in, calculate your income and expenditure, e.g. gas, electricity and council tax. You may be able to reduce costs by changing suppliers. You should always review your budget with your Financial Consultant to make sure it's realistic and you're making the most of any extra income you can save or invest.

Review your mortgage deal: You may have your mortgage for a set period but when it's about to end make sure you check the market for a good deal so you don't pay more than you have to. You'll also need to consider any arrangement fees which some lenders charge.

Wesleyan can help find the right mortgage for you - speak to one of our Financial Consultants today.

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Wesleyan Assurance Society and Wesleyan Bank Ltd are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Financial Services Ltd, Wesleyan Unit Trust Managers Ltd, Syscap Ltd, Practice Plan Ltd and DPAS Ltd are authorised and regulated by the Financial Conduct Authority.  Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd.

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