Tips for first time buyers of London property

Owning your own home is a dream that most people cherish but many first-time buyers are afraid or unable to pursue their dream, fearing that they will need a large deposit or be unable to keep up with mortgage payments.

Daniel Cobb is a family-run estate agent and our sales teams know just how important it is to get that first foothold on the property ladder. There has recently been a lot of publicity around the Help to Buy (HTB) scheme, which has been designed for people who can only raise a small deposit. To take part in HTB you will need to raise just 5% of your property’s total purchase price to use as a deposit. As a first-time buyer, you can access this scheme in a number of ways:

Equity Loans are available until 2021 to first-time buyers who want to purchase a ‘new build’ home costing less than £600,000. They allow you to borrow up to 40% of the purchase price, on the basis that you can raise a 5% deposit and your mortgage will make up the rest.

Help to Buy ISAs are available from banks, building societies and credit unions to help you save for a new home. Under an HTB ISA, the government promises to boost your savings by 25%. That means for every £200 you save, you’ll receive a government bonus of £50 (the cash available from the government is capped at £3,000). These accounts are available to individual first time buyers, rather than each household, so if you are planning to buy with your partner, you could for example, receive a government bonus of up to £6,000 towards your first home. Be aware that the government’s contribution can only be activated by a solicitor or conveyancer when you are close to buying a home and can’t be used for the deposit or any other purchase-related costs.

Once you’ve secured the finance required to buy your London property, you’ll need to consult an expert who can guide you through your home search and purchase. That’s where we come in.

At Daniel Cobb we have been helping people achieve their dream of homeownership for the past twenty-four years. Call us at our offices in Westminster, London Bridge or Kennington and take your first step on the property ladder today. For advice on first home buying, read Buying your first home in London.