Posted in Property
The benefits of getting on the property ladder are far-reaching, and many people look forward to the day they get their first set of key to their first property. If you are looking to find out more about the property ladder and how to access it, then this guide is for you!
What is the Property Ladder?
The property ladder is a saying that describes the journey of buying your first property and then selling and moving as time passes and your funds increase. The first step on the property ladder is often the most difficult as you will need to be fully prepared, but once you manage it, you will be able to slowly climb the ladder until you reach your forever property.
How Can I Get on the Property Ladder?
Take a look at the following steps so that you can prepare to get on the property ladder and achieve your ownership goals:
Start Saving for a Deposit
Before you can begin your search for a property, you must start saving for your initial deposit. Ideally, you should aim to have at least fifteen per cent to put down, but some mortgage providers will accept as little as five per cent, although you may end up spending more on interest if you choose a low deposit.
Make Sure Your Credit File is in Good Standing
Before you apply for a mortgage, you will need to do everything in your power to get your credit score as high as possible. This means showing that you are utilising your credit effectively and that all your accounts are up to date with no defaults. If you do have a poor credit history, your mortgage provider will want to see that you are now using your credit more wisely, so bear this in mind when you start to spend.
Find Out Your Mortgage Options
When you have all your finances in place, you can then find out how much you could potentially borrow. Each mortgage lender will look at how much you earn, your outstanding debt, any dependents you have, your age compared to the mortgage term and the loan to value amount before they can make you an offer. However, most lenders will usually lend between four and five times your salary minus any debts you have. When you know how much you can lend, you can then get an Agreement in Principle so that you can start searching for your first purchase.
Research the Market
When you have an idea of what you can borrow, then you can start looking for properties. There are many listings on sites like Zoopla and Rightmove, or you can head to your local estate agents to find out more about properties in the area you want to live. However, be realistic about prices, but remember that you will not have a chain as a first-time buyer, so this may give you bargaining power.
Get Your Offer Accepted
Once you have searched the market and found a property that works for you, then you can start negotiating on price and get your offer accepted. Of course, it’s good to offer a lower price if you feel there is room for negotiation, but it is important to explain the price you offer so that the seller can understand your reasoning and respond accordingly.
Work With Property Law Solicitors
As soon as your offer has been accepted, you will need to instruct a conveyancer to start preparing the draft contracts. They will need you to share your details and information on your mortgage offer and property details. Property solicitors are an essential part of buying a house and will be with you as you progress to contract completion and exchange. They can advise, negotiate and support you with everything from mortgages to surveys, so take the time to find the right one for your needs.
Complete Your Goal
Once everything has been organised and you have changed and completed, you will have achieved your goal of getting onto the property ladder. With on-time repayments and increasing valuations, you will soon be able to sell your first property and take the next step up the ladder!
Find Property Solicitors in London
If you are looking for Property solicitors London who can help you achieve your property goals, then give Pindoria Solicitors a call. We will work hard to help you every step of the way so that your first step onto the property ladder goes as smoothly as possible. So let us help you achieve your dreams today!