Becoming a homeowner is an ambition that most people dream of someday and would love to make a reality. However, it doesn’t seem like an even playing field sometimes, and many Londoners find themselves stuck in perpetual renting. It’s not easy to break out of the cycle, but if owning your own house or apartment is the goal, we want to help you achieve it.
Aussie Man & Van moves thousands of first-time buyers annually, and we learn something new from everyone we work with. That’s why we’ve put together this guide to help other would-be buyers find their place in London’s housing market. Moreover, we’re here to provide the best removal and storage services when moving into your new home.
Contents
- Our Guide for First-Time Buyers in London
- Top Tips on Saving for a Deposit
- First-Time Buyer Schemes in the UK
- The Current UK Housing Market Position
- Choosing the Right Removals Company
- More Aussie Resources for First-Time Buyers
- Aussie’s Range of Removals and Storage Services
- FAQs for First-Time Buyers in London
Our Guide for First-Time Buyers in London
With over two decades of removal experience under our belt, we have a lot of industry insight regarding trends in the housing market. And in that time, it’s clear that while saving to put a deposit down your first house isn’t easy, the rewards outweigh the sacrifices. Although we can’t state enough that there will be plenty of planning to make it happen.
We’ll address various aspects of reality checks you must consider, including more details regarding average times increasing due to lockdown. Mortgage loan criteria are also fluid and can change anytime, differing from lender to lender. That’s why it’s better to start preparing now and fill in the blanks as you go.
Aussie Man & Van can assist with tips throughout your relocation, even when you’re organising and looking for quotes. We accept future bookings and will be flexible about altering dates wherever possible. And our range of services covers every type of relocation you can think of.
We all start somewhere when it comes to getting onto the property ladder. The shift from renting to becoming a homeowner takes a lot of grit and determination. But it’s one hundred percent worth it in the long run. Furthermore, good advice can save time and reduce any anxiety you might have. The Aussie team is here to help you realise your dream of owning your own house or flat in London.
Top Tips on Saving for a Deposit
Although every step in the homeownership process is essential, it’s a non-starter without a deposit. You need a minimum deposit to initiate a home loan application, commonly known as a mortgage.
Typical deposit needed
The deposit you’ll require varies but should be between 5% and 15% of the property’s total value. We recommend sending initial feelers to mortgage brokers and/or your bank or building society’s home loan advisor.
They can provide you with a guide to the typical deposits for properties in your budget and what you may qualify for, which will help you determine your required deposit. You can also use this to see how close you are to securing a mortgage.
The reality of securing a mortgage
Even if you qualify for one of the first-time government buyer or low-income earner schemes, the likelihood of obtaining a mortgage without a deposit is low to nil. Although this sounds a bit overwhelming, let’s frame it in a positive lens: this is your first goal in your journey. And it’s possible to achieve if you start making changes today.
Record all your outgoings
It’s time to start taking more care with your money and record everything you spend. Using a spreadsheet or Word document to note everything is easy enough. Also, keep any receipts and invoices. Input the information from your receipts once a week, and by the end of the month, you should see patterns emerge. Then, you can see areas where savings are possible.
Set savings goals
You must decide on a monthly budget, including your expenses and money for gym membership and entertainment. Anything left over should go into a savings account, so go and open one this week. Set yourself some monthly savings goals. Check online to see if there are examples of typical mortgage deposits and any advice that relates to saving.
First-Time Buyer Schemes in the UK
Now that you’ll be on your way to saving for a deposit, your following line of research is first-time buyers’ schemes. You’ll need to read up on this and check on any changes to regulations or availability. The one thing that’s clear from everything concerning the continued cost-of-living issues is that there will be economic consequences. And this continuously filters into the housing market.
The government knows the issues facing first-time buyers and low-income households wanting to climb the property ladder. Housing schemes are a mechanism to address these issues and stimulate a new wave of homeowners. Furthermore, with a change of the guard now in place, we hope to see a fresh outlook for new developments and opportunities for first-time buyers and lower-income households soon.
Housing schemes
Some examples are:
Alternative routes
It’s possible to explore other paths when trying to find affordable properties. Housing auctions in London are an excellent way to acquire a house or flat well below the typical market price. Property development offers the chance to buy a building that needs renovation. You’ll have to be willing to project manage the whole restoration and whatever your full-time job is.
Liaise with a mortgage advisor
The best action is to research and contact a mortgage advisor or your bank’s home loan manager. You need to understand your budget, whether you qualify for a mortgage, and whether you can benefit from a housing scheme.
The Current UK Housing Market Position
The cost-of-living crisis and its primary cause, the inflation surge, has up-ended the housing market. With higher mortgage rates, lenders require more substantial deposits from first-time buyers. Job security will factor into their affordability and may result in rejections that might otherwise have been successful. This is relevant for freelancers who might discover additional hurdles.
There’s no golden rule, though. All lenders will have their own criteria; some will be more open to assisting first-time buyers. While some more prominent lenders will likely be more stringent, smaller companies might see this as an opportunity to provide people with loans. Either way, you’ll face a challenging year when making home loan applications.
This shouldn’t put you off trying to become a homeowner, especially if you’re already working towards a deposit. Instead, it just moves the goalposts, and your timeframe might extend into later this year or beyond. The best idea is to start speaking to lenders now to see what they offer. And spread your net out wide – contact them all to see who will meet you halfway.
Choosing the Right Removals Company
Buying your first home should be an exciting new chapter in your life, and it all starts with a relocation that goes smoothly. Assuming your mortgage application is successful, the next step is to find a reliable removal company. If this is your first relocation, don’t worry – you won’t need to look further than Aussie Man & Van for your removals and storage needs.
Online review platforms are an excellent research tool and could improve your chances of receiving better customer service. Using Google reviews, you can see how previous customers rated a company. Similarly, check for accreditation and a robust quality policy before signing up with a moving company. It’s this level of insight that can provide you with a high-quality of service.
Aussie is a five-star company, and if you book with us, you won’t have to choose between value for money and excellent service delivery. Our customers enjoy the best of both and frequently return to use us for future moves or other services. The Aussie team are a friendly company you can always contact when needed. We will gladly discuss any details of our range of services with you. Additionally, we’ll assess your requirements and provide you with a free, no-obligation quote.
More Aussie Resources for First-Time Buyers
The Aussie team has plenty of insider knowledge for would-be homeowners. We speak to people often to review their homeownership journey so we can pass information on to others. Additionally, we use this information to curate articles like this to help more Londoners realise their aspirations of getting onto the property ladder.
Here’s an overview of previous blogs that are perfect for first-time buyers in London:
- Up and Coming Areas of London — discover the best places to scout for affordable properties in the capital.
- Relocating to London for Work — all roads lead to London regarding business. Learn about the best way to relocate here if this aligns with you.
- E-Commerce and Man & Van Services — ideal for those planning on starting an e-commerce store on a budget.
- Handyman and Property Services in London — perfect for any repairs or maintenance on your current or new property, including professional cleaning.
- Removal Services for International Professionals — new Londoners are an increasingly global crowd, often jetting to overseas destinations for work.
- Settling into Your New Home—An often overlooked aspect of moving is settling into your new house or apartment. Read our best tips here.
- Strategic Unpacking Guide — this ties in perfectly with the above article and makes life easier when unpacking.
- Get Your Full Deposit Back — an essential guide for those transitioning from renter to homeowner.
- Using AI Tools when Moving — the ultimate hack for people who are pressed for time. Utilise AI to make the process quicker and less stressful.
This is a taste of some salient points for first-time buyers in London, but there are even more available here.
Aussie’s Range of Removals and Storage Services
Now that you have a better idea about checking the approval rating of your removal company of choice, it’s time to see what package fits your needs. Aussie has two primary domestic removal services: a Man and van and Home Removal packages. The main difference is the vehicle’s volume capacity, but there are always exceptions.
Aussie’s Man & Van service is ideal for people moving out of rental properties with one- or two-bed room’s amount of possessions. The smaller vans adjust well to city-centre traffic situations and can easily change the route. Our Home Removals service utilises a few larger van sizes for three bedrooms and up. This is ideal for larger volumes of items that often benefit from one trip.
One of the packages in Aussie’s range is our dedicated packing service. Our team will do all the heavy lifting, inventory, loading, and unpacking work for you. This can be invaluable for people who have busy work or household schedules. This service covers national and European relocations. Aussie’s removals team has all the suitable packing materials we offer for sale from our website and branches.
If you need help with moving dates, we have three storage options. Our Container Storage package is suitable for long-term storage without the need for regular access. The Self Storage package is typically for people who require frequent access or need storage for a short period. Our AusBox Storage package combines elements of both the previous options.
FAQs for First-Time Buyers in London
Are you still feeling lost? Here are some common questions for first-time buyers in the UK.
What is Stamp Duty, and do first-time buyers need to pay it?
Stamp Duty is not applicable for properties between £425,000 and £625,000. Afterwards, it’s payable, but this is less likely to affect first-time buyers who usually fall within this catchment rate.
How long does the home-buying process typically take?
According to Zoopla, the average time to sell a property in the UK is between 17 and 34 weeks. However, this advice varies among experts, and regional differences apply. This doesn’t factor things like repairs or mortgage chain delays into account. Remember to consider self storage for gaps in moving dates.
What additional costs should I budget for when buying a home?
There are legal fees, surveyor fees, removal and storage costs, repairs and maintenance (for your current house or flat), and potential Stamp Duty. Similarly, remember to factor in the cost of setting up the internet and other utilities and any outstanding invoices and bills after submitting your meter readings. We suggest including a modest budget for when you move in for a takeaway or two while you settle in.
How important is a property survey, and what types are available?
Surveys are crucial to covering your back when buying a home. Several building inspection types are available, so you must research them and consult the council in that area of London.
Likewise, the type of property will affect what survey is applicable and whether more than one inspection is necessary. For example, a listed building or renovation property has specific planning permission and preliminary surveys. Some examples are condition reports, homebuyer reports and building surveys.
Can I negotiate the price of a property?
Yes, negotiating the price with prospective sellers is essential to securing the right property. Outstanding repairs and maintenance factor into this; reviewing any inspections is wise. Furthermore, check for similar sold properties in the area and consult with an estate agent. However, remember that you’re in a market where demand outweighs demand, and unnecessary haggling could be detrimental. Apply some common sense before negotiating.
What is the role of a solicitor or conveyancer in the buying process?
A solicitor or conveyancer is central to buying because they handle the legal requirements and related deadlines. This includes ensuring the seller and buyer adhere to agreed-upon clauses like reports and surveys. Most importantly, they process the final payments and transfer the property ownership documents before handing over the keys.
How can I improve my credit score before applying for a mortgage?
Avoid taking out new credit during the run-up and mortgage application process. Paying direct debits and other outgoings on time is critical because blips can affect a pending application.
What should I do if my mortgage application is rejected?
Firstly, see this as a guide for areas of improvement rather than a finite rejection. It can sting, but this isn’t the time to become despondent. Use this as a template for better financial management going forward. You may need a larger deposit, but discussing this with a mortgage broker is essential.
What is a mortgage in principle, and why is it important?
It’s when you seek professional guidance on what type of mortgage or loan you’re eligible for before submitting an official application. This is crucial for making financial adjustments and improvements to your credit record and can help you avoid a rejection. We strongly recommend you take advantage of this.
How do I choose the right neighbourhood in London?
List your essential must-haves for any prospective area(s) while understanding the reality of compromising on would-likes. You’ll balance this on the property and location, your budget, and your family’s needs. Transport, amenities, safety, healthcare, school, and work commuting are other vital points to consider.
What is gazumping, and how can I avoid it?
Gazumping refers to a seller accepting an offer and allowing other third parties to lodge higher bids. You can avoid this by inserting a clause in your bid that requires the removal of the property from the housing market’s available listings. We suggest checking this yourself to ensure the seller complies with this stipulation.
Aussie – Helping You Get Your Foot on the Property Ladder in London
Aussie is the “can-do” removals and storage company that will take on any relocation job and deliver the best possible service. Due to our high standards and attention to detail, we are fortunate to have a loyal group of customers. Furthermore, we receive hundreds of new customers via referrals from happy clients who recommend us to their family, friends, and colleagues.
Customer service is of paramount importance to the Aussie team. We work hard to create and deliver the best removal packages in London. In addition to the tried and tested removal services, we have specialist packages you won’t find anywhere else. For us, more options equal a better standard of service.
Contact us today if you plan to become a new homeowner in London. We’ll gladly assist you with any relevant information and provide you with a high-standard removal service when you’re ready to relocate.