Buying your first home – it’s a milestone in your life. But it is also going to be one of the most stressful periods of your life too. It doesn’t help that the it’s getting harder and harder to get on the property ladder – recent surveys have shown that the number of first time buyers is steadily decreasing, and the average age of a first time buyer is increasing, due to the lack of affordable housing.

Here at MoneyTowers.com, we have put together our top ten tips for buying a house for the first time to help make your life that little bit easier!

1. Knowledge is Power!
Know your stuff – read up about the market and mortgages. Find out everything you can about the different rates available and work out what the best options for you will be. Find out the latest property news and keep up with the market.

2. Enlist some help
Your parents may be able to help you out. Often, if you can put down a substantial deposit, you can get a much better rate on your mortgage. Parents assets may have grown substantially in the past few years and they may be able to either release some of the equity in their own property, or be able to act as a guarantor for you.

3. Affordability Measures
Traditionally, mortgages are based on your wages or joint earnings. However, mortgage lenders are increasingly looking at other factors such as debts and prospects rating (if you are a graduate, you may be more likely to earn a better wage in the future). These factors will be taken into consideration when an offer is put forward, so it is in your own interests to ensure that you have a tight rein on your finances, and that everything is in good order.

4. Shop around
Do not just walk into your local bank or building society and grab the first mortgage you see. Look at what everyone else is offering and make your decision. Low interest rates may seem a great deal at first, but they may have hefty repayment fees or setup fees which negate the interest rate saving you will make. Carefully calculate how much each mortgage really is after fees etc to see if it really is the fantastic deal it claims to be.

5. Budgetting
Budget yourself carefully to ensure you do not overstretch yourself financially. Write down all your outgoings, and then see if you can switch any of your bills to reduce them. You may be pleasantly surprised how much you can save if you switch!

6. Use other money
Offset mortgages may be a good idea – they combine a savings account and mortgage to help lower monthly payments. The idea behind this is that by forfeiting interest on the savings account, the interest is taken off the mortgage which in theory means you will be better off financially.

7. Joint power!
Couples generally find it easier to buy than single people because they can combine their wages which means they can afford a larger mortgage. If you don’t have a significant other, think about buying with a friend instead. Ensure you cover your bases and have a legally binding contract in case things do not go as planned and you fall out, or you have differing ideas about what you want to happen to the house in the future.

8. Other income
If you have a spare room, consider renting it out. The money can be used to pay off the mortgage and help you with your finances. If your finances are good, the extra money can go towards overpayments on the mortgage – small overpayments can often reduce the overall amount paid back significantly.

9. Consider different areas
If you are struggling to find somewhere to live in your local area, consider moving to somewhere where the prices are cheaper. The cost of living will hopefully also be lower. Once you are on the ladder, it should be easier to return later in life.

10. Chill and relax!
Double digit house price rises are unlikely to return. If you have not found a property to suit you, or you cannot afford to buy right now, relax! Learn to save as much as you can so that when you do get on the property ladder, you will be able to afford it easily. Start with making sure you put some money away into an ISA first – these are tax free savings. Also try and cut back on unnecessary expenditure and get a good hold of your finances. There will be a property out there, it’s just a matter of time!

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