How To Get Yourself On The Property Ladder

If you've been wondering how to get on the property ladder, it'd be no surprise if you're feeling a little overwhelmed. When the news is full of stories telling us how it's becoming increasingly difficult, it'd be easy to resign yourself to the fact that it'll never happen. The good news is that there are steps that you can take to make owning your home a reality.
If you’ve found yourself asking “How do I get on the property ladder?”, our first-time buyer tips are here to help. Let’s take a look at how to get on the housing ladder as easily as possible.

Build your deposit

When looking at how to get on the property ladder, one of the first things to be aware of is the deposit that you’ll need. Unless you’re lucky enough to be in the position to go for a cash sale, you’re going to need a mortgage, and mortgage lenders will need a deposit.

The average first-time buyer will spend £264,000 on their first home. If you take a typical 10% deposit, you’re going to need £26,400 to get started. Yes, you can get deals where you only need 5%, but this will still require £13,200 and you’ll usually find yourself with higher monthly payments.

If you're looking at how to get on the housing ladder, the earlier you can get into the savings habit the better. Cut back on takeaway coffees, question those nights out and whether they're worth it, and do all that you can to put some money away. 

Pay attention to your credit score

Your credit score is based on your credit report and when asking, "How do I get on the property ladder?", this is something that you need to pay attention to. There are 3 credit reference agencies in the UK, and these will all hold information about you. These are Experian, Equifax and TransUnion. 

The information these agencies hold relates to any credit agreements that you have, and how you've managed them. It's vital that you stick to managing your debt and making payments on time. It's also important that you're not maxing out all the credit that's available to you.

You can find tips on boosting your credit score by looking here.

Carry out some research 

If looking at how to get on the property ladder, one thing that you’re going to need to do is carry out some research. As first-time buyer tips go, this is one of the most important. That’s because you need to have a clear idea of what’s available, and what compromises you may need to make.

Some jobs will require you to live in certain locations. If this is the case, you need to know what prices are in that area. If they’re outside of your price range, you need to do some digging and find out if there are other places, within a set radius, that may be that much cheaper.

There are sites that allow you to investigate areas and see what houses have sold for. This is worth doing as it will give you an idea if it’s worth making an offer below the asking price. When you have more of an idea of prices, you’ll know what deposit you’re working towards.

The bank of Mum and Dad

Another approach when looking at how to get on the property ladder is to approach your parents or other family members. There are 2 approaches to this:
  1. Seek help with a deposit – if you’re fortunate, your parents could be in a position to give you a loan. If you're even more fortunate, this could be big enough to cover your deposit. The chances are that any terms that you agree with your parents will be much more favourable than what a bank may give you
  2. Apply for a guarantor mortgage – there are several lenders who offer guarantor mortgages where parents, or other family members, guarantee to meet the mortgage payments should you miss them. This extra level of security could see a lender willing to lend you more. Just bear in mind that getting into difficulties could have a huge impact on your parents, so you need to be sure before committing to this option

Explore government assistance

When exploring how to get on the housing ladder, it's well worth exploring the assistance on offer from the government. Numerous schemes have been designed to help first-time buyers get on the property ladder and purchase their first home.

Some of these schemes mean that you need a lower deposit. Others offer interest-free loans that can assist. Take a look at the help available as part of your research and see what is the best option for you.

Get on board with a top estate agent

If you want to know how to get on the property ladder, you may be surprised by the assistance that an estate agent can give you. Yes, they’re there to act for the seller, but they can offer you some tremendous help too. That’s because, in a way, their role is all about matchmaking. They need the right buyer for the right home.

An estate agency, such as ours, will have expert knowledge when it comes to the local area. They can help you to find properties that suit your budget and your location too. Take the time to talk and you may be surprised at the level of help they can provide. 

The benefits of getting on the property ladder

It may not happen overnight, but here are plenty of reasons why you should preserve and move towards owning your first home. Just some of the benefits of homeownership include:
  • You get to create the perfect home that you want
  • There is the opportunity to build equity
  • Whereas landlords may change your rent, with a mortgage you know what you’re going to pay
  • You have the opportunity to put down roots

Are you ready to take the next step?

With a deposit in place, and a credit score that’s ready to go, now’s the time to start working with the best local estate agent. By letting them know just what your budget is, and exactly what you’re looking for, they can guide you to finding your perfect future home. Why not get in touch with Palmer and Partners today and start the journey towards home ownership?