If you’ve seriously started considering buying your first property, you should also be considering how you can afford it, so here are the best six budget planning tips for first-time buyers from DB Roberts.

5 Tips Any First-Time Buyer Should Know

1. Put your savings to work Why have money just sitting in an account when you could be earning money on those savings? If you have a decent interest rate, you can reach your savings goal faster, but picking the right account is dependent on how you’re saving. If you have money to put aside each month and want to set up regular payments, a standard savings account might be your best bet. If you need more flexibility with the amount you put away, for example, if you save in lump sums whenever you can rather than on a fixed schedule, an instant access savings account might be the better option for you. 

2. Research areas and locations As a first-time buyer, deciding where to buy your first home is just as important as saving for your deposit. If you haven’t picked the area you want to purchase your new home in yet, do some research to find out what you can afford and if the area fits your lifestyle and needs. You can speak to our expert team here at DB Roberts to help guide your choice, but ultimately you will need to determine which areas fit your budget before anything else. Be sure to check out what the prices are for the type of property you want to buy, as well as council taxes and any other costs that need to be factored in such as travel or parking fees for example. Once you have an idea of what the cost of your property will be, both when purchasing and when actually living there, you can start to properly budget to save for a specific goal.

3. Budget for your monthly mortgage payments Getting a mortgage means you will be required to pay a monthly amount to your lender to cover the amount you have borrowed, so it's vital you speak to a lender or financial adviser to ensure affordability. Here at DB Roberts we will be delighted to assist. Mortgage Advice Bureau work with DB Roberts to provide their clients with expert mortgage and protection advice.

4. Budget for other home-buying costs There are more costs to consider once you’ve had an offer accepted on your first home, so you should make sure your budgeting plan includes enough to take care of these when you complete on your first property. You don’t want to end up in a situation where you’re short of cash and are barely making your mortgage payments. These other costs can include:

Solicitor feesSurvey costsMortgage arrangement costsBuildings and contents insuranceFurniture and decorating requirementsNecessary renovations or maintenance 

5. Take advantage of 'help' schemes The government’s Mortgage Guarantee Scheme was originally scheduled to end on 31 December 2022, but has been extended until June 2025. It was introduced to increase the supply of 95% loan to value (LTV) mortgages and to make them cheaper.

This scheme sees the government guarantee part of the mortgage, so making it less risky for the lender. The guarantee also compensates mortgage lenders for a portion of any net losses suffered if the property is repossessed at any time.

A 5% deposit and a mortgage with a participating lender is required to use the Mortgage Guarantee Scheme. The property being purchased must also be £600,000 or less. 

Current lenders participating in this scheme include Royal Bank of Scotland, Natwest, Barclays, Lloyds and Halifax.

Looking to buy your first home in Telford, Shrewsbury, Stafford, or Wolverhampton? With DB Roberts offices in each of these locations, we're here to guide you every step of the way.