There are more challenges than ever when it comes to buying a home

26 May

There are more challenges than ever when it comes to buying a home

There’s no glossing over the fact that buying a property is tougher than it used to be.

Budgets are being squeezed like never before as interest rates are at a 15-year high, low-cost mortgages are no longer available, and high energy costs have fuelled the cost of living issue. Despite all this, 2023 could be the perfect time to buy that house you have been wanting for so long.

UK house prices have fallen for the fifth month in a row, with the average price of a home dropping to £262,068.

So, what do you need to know to to become a homeowner:

January is a busy time for the housing market
January is normally the busiest time in the housing market. Therefore, it’s important to work with a broker to obtain a decision in principle.

As all estate agents are going to request this, you can get an offer accepted on a house and beat the competition from other buyers. The secret to beating the housing market is all about being prepared. A good mortgage advisor can help you ease through the process.

Get your taxes prepared if you are self-employed
If you are self-employed, it is important to ensure you have completed your latest personal tax return and to make sure all outstanding taxes have been paid. Mortgage brokers will need this information to submit your mortgage application and fast forward the process as it will help lenders to make a quick decision.

Check how you have budgeted
If you are serious about purchasing, you must ensure that you have budgeted appropriately, especially during the holiday season. Lenders will assess your bank statements and make sure your bank account conduct does not demonstrate any over-commitment.

Double-check your paperwork and work with your broker
It’s vital that you make sure you have all of your paperwork in order – valid passports, driving licence with the correct address on where you currently reside, and even valid documents such as a bank statement. Getting this in order now will help speed up the process.

Overall, working with your broker is the secret to getting through what can be a very stressful period. Your broker will guide you through the process and determine what you can afford so you can carefully plan your property viewings.

As the Bank of England is expected to raise rates further to try to combat inflation, and with no signs of a significant reduction in mortgage rates, it’s expected that the housing market will be quieter in 2023.