need all the help and assistance you can get to get yourself on the ladder! Start with our so you know where to start both on the finances and practicalities of buying your first home.

If you’re thinking about buying a new home you are very important when it comes to the . New home buyers keep the housing market afloat and if there aren’t waiting to buy a or pounce on an opportunity of a drop in the market, the price of houses – and our – would collapse! Hence the government, estate agents and new home builders are doing their utmost to persuade you to buy, despite the credit crunch. Remember whatever the experts predict don’t feel like you’ll miss out if you don’t buy today, the value of houses could still rise or fall. The economics of prices is a complex business, so you need to think about your long-term security, and don’t jump in unless you know you can afford it.

Can You Afford To Buy Today?

Economists suggest that during the recession those home owners who didn’t loose their jobs benefited from extra disposable income while variable mortgage and loan interest rates went down. As the recovers the interest rates will slowly increase as will many mortgage payments. The credit crunch has also meant it’s not so easy to get hold of a mortgage, most companies demanding at least a 10% deposit, and much more if you want a competitive interest rate, which during a credit crunch is not easy to save for! ‘The average deposit paid by first-time buyers across the country is now nearly £20,000, leaving even dual income households hard pressed to find a deposit,’ says Phil Jenks, head of mortgages at the Halifax.

Statistics from the (CMP) state that a massive 46% of under the age of 30 receive ‘substantial’ financial help from relatives compared with just 10% in 1995. Borrowing money from relatives can change a relationship, and don’t expect to be able to pay it back while you’re getting used to your mortgage payments, but if the offer is there then take it seriously because the bigger the deposit the more likely you are to get a good mortgage rate offer.

During a credit crunch there are a lot of vendors vying for your attention – this is a situation called a Buyer’s Market. Use this to your advantage and see if you can get a deal if you’re struggling to raise a deposit and ask the vendor to pay some or all of your deposit and legal fees for you rather than to reduce the price of the property.

Deposits are not the only money you will have to pay up front. There are other fees associated with buying which may include stamp duty, legal and removal costs, survey and mortgage arrangement fees, and buildings and life insurance.
first time buyers guide