8 First Time Buyer Myths Busted

Tuesday 9th May 2023

Purchasing your first home is a huge step in your life, which is why you need to be prepared with the correct information. There are a lot of first time buyer myths out there that you’re going to want busted before you begin the process of becoming a homeowner. So without further ado, let’s take a look at the reality behind our top 8 first time buyer myths.

1. You Need A Big Deposit

So, how much deposit do you need for a first time buyer? According to our first time buyer myths, it’s a lot. Obviously, a bigger deposit greatly expands the mortgage options available to you, but that doesn’t make it totally necessary. Somewhere between five and twenty per cent are perfectly good deposits to begin the search for a mortgage.

2. The Lowest Interest Rate Is The Best Deal

Interest rate is one of the most important aspects you have to consider in a mortgage deal - but it’s not the only one. You need to pay attention to what kind of deal you’re making. A Discount or Tracker deal is subject to flux and variation, while a Fixed Rate means that your rate will be set in stone for a certain period of time. You’ll also need to look into the length of the deal and the fees involved to make sure you’re making the most informed choice you can. 

3. There's No Room For New Homeowners On The Property Ladder

For many, particularly those in their 20s and 30s, owning your own property is increasingly seeming like a pipe dream. This is one of the major first time buyer myths that hold people back from looking at investing in property. In actuality, a first time buyer can be a very appealing option for a property dealer to sell to. Being detached from the property chain means that you won’t have to sell off an existing property before you can arrange to purchase another. This is a very attractive quality to sellers on a tight time frame, and may well be the decisive advantage that gets you the property you’re after.

4. Now Is Not The Right Time To Buy

The Property Market is a fickle thing, and prone to swing around in unexpected ways that can throw off the most experienced buyer. You may be holding out for months and months only to see properties skyrocket in price. At the end of the day, the ‘right time’ to invest in a property is the time that works for you, not for the whole market.

5. You Have To Get Your Mortgage From Your Bank

Your bank likely bombards you with a variety of offers for your mortgage, but one of the main first time buyer myths is the idea that you are somehow obligated to use them to secure it. You are not. Your bank may well offer good deals for their existing customers, and these may be ideal for you. But there are thousands of mortgage deals available to buyers, so it’s certainly worth shopping around and looking into the best deal you can get based on your own personal needs.

6. You Can't Secure A Mortgage With A Less Than Perfect Credit Score

You might be asking yourself how to get a mortgage as a first time buyer with a less than perfect credit history. It’s certainly true that a bad credit history won’t help with trying to secure a mortgage. But that absolutely doesn’t mean that it’s impossible to do so. There are mortgage deals out there specifically set up for people in this situation. You could also attempt to repair your credit history by establishing a pattern of consistent payments, and don’t forget to take your partner’s credit score into consideration as well. The two of you are being evaluated as a pair, not separately.

7. You Can Find Out All You Need To Know About The Property Online

One essential tip for a first time buyer - always view the property yourself at least once before you buy it! It’s important to immerse yourself in the house and get a feel for what your life there might look like before committing to anything. You’lll also have the chance to catch any details that may not have been advertised online, and have a look at the surrounding area that you may be moving into.

8. You Have To Pay The Full Cost For Stamp Duty

There are several costs associated with purchasing property beyond simply the cost of the house itself - one of which is Stamp Duty. This fee is paid by the buyer - not the seller. If you’re a first time buyer though, you’re in luck. You won’t have to pay any stamp duty on properties valued at £500,000 or less for the first £300,000 you spend. 

So that’s our top 8 first time buyer myths busted! If you’re looking for more essential information for a first time buyer, then check out our other post covering our top tips for buying your first home. Now that you’re armed with all the essential knowledge that you need, you’re going to want to start getting set up to move the right way, which is why you’re going to want to get the services of a removals company like Hackworthy that you can trust to deliver. Take a look at the amazing services that we can offer, or feel free to get in touch with our team to find out how Hackworthy can take away some of the stresses of moving today.