First time buyer help

First Time Buyer Help

If you're looking to buy a house for the first time in the UK, you might have a lot of questions, especially if you are buying right now in a market that is a bit unstable. Lenders are not giving home loans as often as they once did and getting a first time buyer loan can seem even more difficult.

This is an uncertain time for home buyers. Average prices are around £169,000 so are still very high in most parts of the country although we are seeing them dip in many areas. In addition to the high prices, banks don't want to give out loans and are more restrictive and selective with who they loan to especially if you are a first time buyer.

For many first time buyers, getting a loan is the most difficult part of the process. For others, getting a deposit or handling the legal fees is also a problem. For still others, understanding the paperwork, acquiring the necessary paperwork and understanding contracts is a problem.

Types of Help

So what types of help are out there for people who are trying to buy a home for the first time? One of your first steps should be to obtain as much information as possible, so one type of help is in the form of knowledge. You need to learn as much as possible about the home buying process and how it all works. You should learn about contracts, terms, types of loans, mortgages and more so that when you start the home buying process as a first time buyer, you are more informed.

Next, you need to know how to find a property. Don't avoid getting help with knowing what type of home you need, how much it should cost and how you can get it. You also need to seek Home Information Packs. The introduction of Home Information Packs (HIP) in the UK helps make the property buying process more transparent, quicker, more efficient and smoother. You should take advantage of this help tool as well.

Other ideas to help you afford your first home include:

The more you learn about the different types of help available, the more you will see that it is possible to purchase your own home.

Help from the Government

Recently the government announced its plan to help first time buyers get into the property market. This means there are even more opportunities available and if you are a first time buyer, you should look into all of these options that might be available to you.

These new measures include £1,500 grants to help qualifying buyers with costs such as solicitors' charges and furniture, as well as a part-buy scheme offered to key workers and certain first-time buyers. This is all part of a government effort to encourage and assist first time home buyers. You can find out if you qualify before you give up on being able to purchase your first home. Social tenants, key workers and first time buyers can all qualify for the government help.

So far the government said more than £3m has been allocated for the grants - enough for 2,000 people. These grants will be offered to buyers who participate in the government's Open Market Homebuy Scheme (OMHB). This program helps buyers take out a mortgage for a percentage of their home and then another separate loan, called a shared equity loan, from the government and lenders to pay for the balance. This program helps first time buyers who might not otherwise be able to purchase a home.�

Posted in Articles from 2009