Expert tips for first-time buyers in Sheffield on making an offer and completing

House prices are higher than ever with the UK average at a record figure of £230,000 so buying a home can be daunting.
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But it’s not all bad news for first-time buyers looking to purchase, says Anthony Mellor, head of home insurance at Swinton Insurance.

“Buyers can still benefit from Lifetime ISAs with savings bonuses, 5% deposit schemes and stamp duty holidays,” he added. “Despite the current condition of the economy, property remains a good investment, and now could be the perfect time to buy.”

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Swinton has offered top tips to buyers which start with knowing your finances. Get to grips with your monthly in-goings and out-goings. From this, you can work out a realistic savings goal and go on to work out your deposit. You’ll also need to have a good credit score: paying monthly bills on time and registering to vote can improve your rating.

Top tips for first-time buyers in Sheffield's booming property market.Top tips for first-time buyers in Sheffield's booming property market.
Top tips for first-time buyers in Sheffield's booming property market.

Do your research. Discover which areas you’d like to look for property in, find out the average cost in your area, and start to keep an eye on the market — even before you get your deposit together.

Begin to save, cutting back on monthly spending, and find a good mortgage broker. At viewings get in there quickly, make sure you call estate agents and ensure that you’re on their mailing lists.

View some places and decide what your deal-breakers are. Negotiate price – properties that have been reduced in price could signify that the owner requires a quick sale. Look out for these on sites like Zoopla, where edits to the property listings are tracked. Find a good value conveyancer and get the right survey.

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There are some great incentives for first-time buyers to finally get on the property ladder. So if you’re looking to purchase your first home, now could be a good time to buy.

Incentives to buy in 2021 include 5% deposits, which give buyers access to 95% loan-to-value mortgages, which means that the loan is for 95% of the property’s value. These mortgages were standard before the pandemic, but became unpopular with lenders because they were deemed to be high risk.

Today, the 5% deposit scheme means there is now an additional incentive for lenders as the government has agreed to pay out if the borrower defaults on payments.

The scheme will run to December 2022. To qualify you must be buying a main residential home in the UK and choose a property worth £600,000 or less.

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You must also have a deposit equal to between 5-9% of the property’s purchase price – so a mortgage loan-to-value of between 91-95% – apply for a capital repayment mortgage and pass a lender’s normal mortgage affordability criteria.

As for the stamp duty holiday, stamp duty is a land tax that is paid when houses, flats and other land or buildings are purchased over the cost of £125,000. The stamp duty holiday means that until the end of September 2021, buyers will not pay stamp duty on the first £250,000 of a property’s purchase price.

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