Five myths when it comes to buying a property for the first time

Buying a home for the first time is stressful, you want to find the perfect place while making sure it is affordable for your budget. Many people don’t know where to start and have come under false assumptions due to widely spread myths.

You might be in a position to buy a property without your knowledge, so it’s crucial you do your own research before you rule yourself out.

To give you a helping hand, our property experts at Household Quotes have debunked five myths when it comes to buying your first house.

Many believe that to get your foot through the door, you need to have saved up enough money to afford a 10% deposit. However, this isn’t always the case. Depending on the value of the property and your location, some banks will accept a 5% deposit which cuts the amount you're required to save by half. 

This comes down to your own calculations, but you’ll often find monthly mortgage repayments being similar to or even cheaper to that of rent. It’s also important to remember that all money put into rental properties goes to the property owner, whereas your mortgage payment is an investment into the home you live in. So when it comes to selling, you should recoup the money that you have put in each month.

Always remember that estate agents work on behalf of the seller, it is in their best interest to sell you the property as they’ll earn a commission. Don’t feel scared to bring up any parts that you dislike, and take your time to make a decision away from the estate agent. This is a big decision in your life so there is no need to rush or feel pressured.

When you take out a mortgage for a property, it is repaid over a certain period, for example, 30 years. Some believe that you have to stay in that property for that long, or until you fully repay your mortgage. This isn't the case, there are several ways you can get out of it, including; by selling, refinancing (changing the terms of your mortgage) or turning it into a buy-to-let. The buy-to-let option will mean you will rent the property out to pay off the rest of the mortgage.

First-time buyers are often pictured outside of newly built properties, so it’s no wonder some people believe that they are the only option. New builds are popular for several reasons; they are normally more available than other properties, and the government has certain schemes relating to new builds. You can buy all different types of properties, as long as you can get the mortgage in order to afford it.

‘’It’s very easy to start believing myths that are regularly spread, my advice is always to do your research and don’t rule yourself out before doing so. Get advice from a family member or close friend who has been through the buying process before as this will be a real help.

Getting yourself on the property ladder might seem difficult, but it is possible.’’