Purchasing property in London: A first time buyers’ guide 29 Nov 2019
With the slowing down of the property market since the result of the Brexit referendum was announced back in 2015, it’s the ideal time for first-time buyers to take advantage of the market conditions.
Taking the first step on to the ladder can be daunting for first-time buyers no matter where in the country they’re looking to buy, but we’ve put together this guide specifically about buying in the capital.
Cheaper areas of London to buy
In a recent Homes & Property article, it was revealed that across London the cheapest borough for buying property is Barking & Dagenham where 95% of all properties are deemed to be affordable for first-time buyers. In Bexley, 54% of properties are considered affordable. These figures are based on data from Post Office Money.
London Help to Buy scheme
Just because those boroughs are deemed the cheapest to live, there are options for those looking to buy for the first time in other areas of the capital.
The Help to Buy scheme operates across the UK, but the London scheme is considered to be more generous than elsewhere. It allows first-time buyers buying in Greater London, to apply for an equity loan of up to 40% of the property’s value for new-builds with a value of £600,000 or less.
There are pros and cons to the scheme, so if it’s something you are considering it is best to get professional advice based on your own personal circumstances.
Securing a mortgage
In the first nine months of 2019, 44% of home purchases were by first time buyers, and increase of 8% from 2015. The increase has been attributed to multiple factors, including record low mortgage rates.
As a basic guide, lenders can typically loan up to 4.5 times the total yearly income of those purchasing the property. The interest rate you are offered also largely depends on how much of a deposit you are able to raise. There are other personal circumstances which can affect getting a mortgage as well, so its well worth talking to a broker in order to get an idea of where to apply for a mortgage to get the best rates based on your personal circumstances.
If you’re a first time buyer looking to purchase a property in Shepherds Bush, Acton, Ealing, Fuiham, Hammersmith, Hanwell, Hayes, Hounslow, Isleworth, Kensington Olympia, Notting Hill, Osterley or Putney – get in touch with us, and a member of the Austin D’arcy team will be happy to talk you through they buying process.