A first time buyer’s guide to getting on the property ladder

Deciding to buy a home is one of the biggest steps you can take in your life, and most likely your most expensive purchase, so it’s important to make sure you fully understand everything that’s involved.

Here at Peveril Homes we’ve helped countless first time buyers successfully settle into  their new home, so we have the expertise to help guide you through your first house purchase and our experienced Sales Executives are always on hand to help you every step of the way.

Financing your first home & finding the right mortgage

Very few first time buyers will purchase a property outright. Most people rely on a mortgage to help them buy a home.

When you start looking for a mortgage the choice can be bewildering. The main factors that will influence your choice are:

  • The amount you need to borrow
  • The deposit you have
  • The amount you can afford in monthly repayments

Use our online mortgage calculator below to help you work out what you can afford.

You can apply for a mortgage directly from a bank or building society, or you can use a mortgage broker or independent financial adviser (IFA) who can compare different mortgages on the market.

Help to Buy

There are also schemes available such as Help to Buy that we can offer to first time buyers to make life a bit easier for you. With Help to Buy you can move with as little as a 5% deposit. Find out more here.

If you’d like a hand calculating your budget, or would like to find out how Peveril Homes can help you move in for less, please contact the Sales Executives at your chosen development.

Solicitors, contracts & completion

The legal process involved in buying a home can be complicated and you will need to instruct a solicitor to represent you when you reserve your new home. They will check the contracts, title deeds and undertake searches and enquiries on your behalf, as well as advising you throughout the process. They will ensure all finances are in place for you to proceed to legal completion, this will include calling off any required funds including Help to Buy.

Finances – Mortgages and Help to Buy

The next important step is is arranging your finances whether by going directly to the mortgage lender or by using a registered Independent Financial Advisor. They will help you decide which mortgage is best for you, whether Help to Buy is an option and then sort all the necessary paperwork and process your application. A mortgage valuation will be undertaken on the property and if all goes correctly this should culminate in that all important mortgage offer. Once received your solicitor will be asking you to sign contracts and ensure you have provided them with your deposit money. You are nearly there!

Signing contracts

When you receive your mortgage offer, contact your solicitor to make arrangements to sign contracts. Once you have signed contracts and provided your solicitor with your deposit money, your solicitor can then proceed to exchanging contracts.

Exchanging contracts

On every house sale two identical contracts are prepared by your solicitor and the seller signs one and the buyer signs the other. When both parties are ready to proceed, contracts are exchanged, making both parties legally bound to proceed with the sale and purchase of a home.

When you are ready to exchange contracts your solicitor will ask you for your exchange deposit.

When exchanging contracts your solicitor will agree a moving date for you, called the completion date. If your new home is still under construction, we will give you an estimated date and you will exchange ‘on notice’. Formal notice will be given from our solicitors to your solicitor at least 10 days prior to required legal completion, when your property will be ready for you to move into. But don’t worry your Sales Executive will keep you updated throughout, so this won’t come as a shock.

Home demonstration and our unique pre-occupation inspection

Two weeks before legal completion, we usually invite our buyers to join us in familiarising themselves with their finished home and learning how it all works. We appreciate it’s a lot to take in, so we are always there afterwards to answer anything that has been forgotten and we will provide on legal completion your home pack which incorporates everything to do with your home.

This home demonstration is then followed by the pre-occupation inspection which is unique to Peveril Homes and gives you the opportunity to highlight any issues that we need to address before you move in.

The initial home demonstration with your Site Manager and Sales Executive will be followed by our pre-occupation inspection which is unique to Peveril Homes and gives you the opportunity to spend time in your new home, check all is as you would expect and highlight to us any areas of the finish you are not happy with. Our team endeavour to get your new home as near to perfect as we can to ensure you are totally happy. However, it is a hand-made product and should something have been missed, we will make every effort to get this sorted before you move in. The last thing we want to do is disturb you once you have moved in.

Preparing to move

Taking ownership of your first home is exciting, though the actual move itself can be stressful. Make life as simple as possible by planning and preparing in advance.

Begin by de-cluttering and throwing out anything you no longer need. If you are using a removal firm, use someone from the British Association of Removers or the National Guild of Removers and Storers (NGRS), but always get quotes. Check your home insurance covers you for any damage during the move, just in case!

When you have an actual moving-in date remember to book your time off work, and if you are renting give notice to your landlord and tell your existing utilities companies when you are moving out.

Make sure all services are connected – gas/ electricity/water/phone, and that your buildings and contents insurance cover is in place.

Our Sales Executives can provide you with a check list for you to refer to and ensure you haven’t missed anything.

Settling into your new home

On legal completion we will provide you with our handover pack which contains information regarding your new home, including the LABC Buildmark Warranty and manufacturers’ warranties, manuals and general information, together with emergency contacts and procedures.

If you find that there are any issues once you’ve moved in, please give us a call. Making sure your first days in your new home are happy ones is a priority at Peveril.

Our commitment to you continues after you move in for a further two years, and after 12 months we offer an optional maintenance inspection, as laid out in our Customer Charter.

Why buy new?

Ways to Buy

  • Help to Buy
  • MovePlus Assisted Purchase
  • Part Exchange
  • NHS/Forces

Online calculators

Use our range of helpful online calculators to help you understand your financial position better.

Mortgage Calculator

Monthly mortgage cost: £711

Breakdown of monthly payments

Repayment amount: £500 a month

Interest: £211 a month

Stamp Duty Calculator

Single property or additional property?

Cost of stamp duty: £0

Help to Buy Calculator

Monthly mortgage cost: £711

5% deposit: £10,000

Help to Buy equity loan: £40,000

Mortgage: £150,000

Frequently asked questions

How much of a deposit do I need to save?

The minimum deposit lenders will accept is 5% of the property value. Remember that the more you can afford to put down as a deposit, the wider the choice of mortgages you will have access to and the cheaper they will be.

How much stamp duty will I have to pay?

Following the latest Government announcement, the Stamp Duty Tax only applies if you are buying a property over £500,000 until 31 March 2021. Please use the Stamp Duty calculator above to help understand your financial position better.

Can I buy with someone else to keep costs down?

Yes – provided you both have good credit scores and enough of a deposit and income to secure a mortgage. Property can be owned as joint tenants or as tenants in common. If you set it up as a joint tenancy, the part owned by you passes to the other person in the event of your death. With tenants in common, the ownership of the property can be split down in any percentage you like and your share can be passed to a family member when you die. It is vital you seek legal advice.

Which mortgage should I go for?

That all depends on whether or not you want to be certain that your mortgage payments won’t change over time. Often first-time buyers go for a fixed rate mortgage because this gives them peace of mind

that the amount they pay each month will remain the same during the term of the deal (typically between two and five years). But if you don’t mind the fact payments could change, then you might want to look at other options such as a tracker mortgage. We suggest you speak to a reputable Independent Mortgage Advisor to ensure you receive the correct advice. We can put you in touch with such a mortgage professional should you need it, please be reassured we get no financial gain from this introduction just the knowledge that you are getting best advice.

Are there any schemes to help first time buyers?

Yes, there are several different options available for first-time buyers who are struggling to save up a deposit, including the Help to Buy scheme which is available across all of our Peveril Homes sites.

What does it all mean?

Here’s a list of the most commonly used terms we use throughout the house buying process and what they mean.

Jargon Buster