With lots of people looking to buy a property at this time of year, it pays to be prepared and stay ahead of the competition. So, here are our top New Year’s resolutions for people looking to buy in 2017.
1. Assess your financial position
By now you might have already saved enough for your deposit. But if you’re a first-time buyer, or don’t currently own a property, it’s worth checking if you are eligible for any of the government’s Help to Buy schemes – as they can make buying a property in London more accessible.
2. Compile a list of your monthly outgoings
To support your mortgage application, you’ll need to create a list of how much you spend each month and what you spend it on. Mortgage companies will look at your outgoings to determine your borrowing potential and your ability to repay the loan, so now is a good time to make a few easy savings here and there.
3. Register on the electoral roll
To obtain a mortgage you will need to make sure that you are registered to vote on the electoral roll at the correct address, as this is how lenders identify that you are who you say you are. It’s very easy to register on the government website.
4. Make a list of moving costs
While most of us know the main financial costs of buying a property, such as solicitor’s fees and Stamp Duty, there are many more additional costs that people aren’t aware of. Here is a (by no means definitive) list of the costs you will need to factor in:
- Stamp Duty Land Tax
- Solicitor’s fees
- Surveyor's fees
- Local searches carried out by solicitor
- Mortgage broker fees (if applicable)
- Mortgage arrangement fees
- Removal company fees
- New furniture costs
5. Arrange a mortgage in principal
While you may not have found your perfect property just yet, you can still apply for a mortgage in principal, which outlines how much you could borrow if you find a property within a certain timeframe. This may make your offer on a property more appealing to the seller if you can prove your finances are in place.
6. Work backwards
When we say work backwards, what we mean is decide where you want to be in say five years’ time, and work out how this can be achieved in the buying decisions you make now.
It’s best to think about whether this property is a long or short-term investment, a forever home or just a step onto the property ladder.
Most of us can’t afford our dream home when we buy our first property, but make a good investment now, and this may be possible in the future.
For example, if you don’t need the space in the short-term, consider buying a one bedroom flat in an area where there is plenty of development happening, such as Croydon or Wembley. The growth of your investment could mean being able to afford a larger property in your preferred area further down the line.
7. Explore new areas
When buying a property in London, the choice of neighbourhoods can be daunting. With so much on our doorsteps, each area of London has something different to offer. So how do you choose an area that’s perfect for you? It’s a great idea to explore places you’ve never been before – perhaps check out the local night life, have a walk down the high street at the weekend, or check out how easy your commute to work is. Our Local Life section lists the public’s favourite pubs, cafes and restaurants in each area.
Discover more...
Browse our properties for sale, check out what Help to Buy schemes you may be eligible for, or take a look at our New Year's resolutions for sellers.
