First Time Buyer Guide

Key Steps:
Unless you’ve sorted out your home-buying fund, you will need to start saving, cut down on any borrowing and make sure your credit record is as good as possible.

1. Build up a solid savings balance - You will usually need a solid savings balance for the deposit – about 10% or more of the amount that the property costs, plus enough to cover other initial expenses which could be several thousand pounds. At this stage it could help to calculate your moving costs.

Tips:

• A Mortgage Specialist can help you work out deposit and initial expense costs.
• Our Savings calculator will help you work out your savings plan.

2. Cut your borrowing – Most lenders work out how much you can borrow based on your outgoings as well as your income. Reducing this will give you more to spend on your home. And as you pay off any borrowing, it will become easier for you to save. Get an idea of how much you might be able to borrow with our Borrowing Calculator.

3. Polish up your credit record – Lenders will look at different things but in general it will help if you are on the electoral register, are in steady employment, have kept accurate records of your income and tax, have copies of your last six months’ bank statements and last three months salary slips.

• You can check your credit record through agencies like Experian, (www.experian.co.uk), Equifax or Callcredit (www.callcredit.plc.uk) although they may charge for this service.

Next step: Working out what you can afford

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