Buying your first home is an exciting time whether you are making the leap by yourself, with friends or a partner. It can also be a daunting time as there is so much information out there to consider. We hope to take some of the pressure off by guiding you through the process below.
Things to Consider if you’re a First Time Buyer
Saving for a house
With most buyers putting down a 10-20% deposit on their first home, this can mean you need to gather quite a large sum of money initially so you can borrow less. The best way to do this is not to panic, just start saving! Use a free tool like the Money Saving Expert’s mortgage deposit calculator to see how long it will take you to save your deposit depending on the amount or check out our tips for saving towards a house.
If you’re saving with your partner, work out how much you both can afford to save from your incomes each month and put that into a savings account or use your credit union. Check out our blog on daily habits that may be costing you money to see where you can save. And remember, the more you can save, the smaller your monthly mortgage payments will be.
Be aware of hidden costs
When you are determining how much you need to save, you must also take into consideration the other costs involved with buying a home, including:
- Survey costs
- Solicitor’s fee
- Removal costs
- Buildings insurance
- Initial furnishing and decorating costs
- Mortgage arrangement and valuation fees
- Stamp Duty (if you buy a property on or both 31 March 2021, you will pay no Stamp Duty on properties costing up to £500,000)
Okay I’ve saved, how do I get a mortgage?
Mortgages sound more daunting than they actually are. Lenders such as your bank, will work out your household income then take all your regular household bills and outgoings into account, along with any debts such as loans and credit cards, to make sure you have enough left to cover the monthly mortgage repayments. It may be worth using a comparison website to find yourself the best mortgage suited for your needs. You will then be asked to present a number of documents for the lenders review. Find out more about applying for a mortgage, including what documents you will need to present to your lender.
Choosing your new home
This is the exciting part! Whether you are looking for a forever home or something to just get you on the property ladder, there are lots of things to consider when searching. Websites like PropertyPal allow you to input different price ranges and areas you are considering living in to narrow down your search. These are often updated regularly, so be sure to check in or set up notifications to be alerted of new properties. If you are buying a house with a partner, remember compromise is key here! Write a list of your essential qualities in a house and a second list of ‘nice-to-haves’ and use this as a way of qualifying properties.
Making an offer
You have found the perfect home, now it’s time to make an offer. Use the asking price as a guide and set yourself a limit for how much you are willing to pay for the property. Get as much information on the house as possible to help you determine its real value. Ask the estate agent how long the house has been on the market and if any other offers have been made. These answers may give you some leverage in the negotiation process.
As a first-time buyer, you are often able to move much quicker than someone in a buying and selling chain which makes you a desirable candidate to buy!
Setting up bills
When you move to a new house you will become familiar with what bills need paid. It’s important to set these up as soon as you move so you can get them working without any delay.
If you are a current Electric Ireland customer in your rental property and are moving to a new house, you need to contact us at 0345 600 5335 to switch your new address to Electric Ireland. You will need the following information to complete this task:
- Your name
- The address of your new home
- Your Electric Ireland account number for your previous address if applicable
- MPRN. From previous occupant if possible
- Meter reading - Agreed transfer meter reading with the departing occupant if possible
Are you already moved in and choosing an electricity supplier? Switching to Electric Ireland couldn’t be easier, take a look at our latest offers.
