by Paul McVittie, Cumberland Building Society

Last updated at 08:58, Tuesday, 10 April 2012

Spring is here and, for some, the idea of buying a first home is about to become a reality.

Buying your first property can appear a daunting experience but with the right help it should not be as stressful as many would make it out to be. The following tips may prove useful to you.

Forward planning

Unless you already have some money put away, you will need to start saving for your first home.

Most first time buyers will need a deposit of at least 10 per cent of the total cost of the property. The more money you can save, the less you will need to borrow. Some lenders now offer special savings accounts for this purpose, which pay higher rates of interest, offer flexibility as to how much you can save each month and offer “extras” if you take out your mortgage with them.

How much can you borrow?

It is important to establish some borrowing limits before you start looking for your dream home. A mortgage advisor will talk you through the whole process and give you an initial indication of what you can expect to borrow.

This will depend on factors including how much you earn, what your out-goings are, and how much you can put down as a deposit. An early meeting with an advisor will be of real help.

Different types of mortgages

There are a lot of different choices. Repayment or interest-only? Fixed, discounted, cashback, tracker, offset? It is so easy to get confused. Too much choice often makes the decision harder. Again, this is the point where a good mortgage advisor comes in. They are able to talk you through all of the various choices, explaining them to you in a straightforward way, and recommending what would be best for you given your particular circumstances.

A helping hand

You may find that you need to borrow slightly more than your current income and outgoings will allow. This is not necessarily the end of your dream, providing that someone is willing to help out.

A friend may be willing to buy jointly with you to help spread the cost. Two incomes are likely to prove better than one.

If this is a possible option for you, then both you and your friend should obtain legal advice before you begin your search for a property.

A parent or close family friend may also be able to help. They might be willing to guarantee your payments enabling you to borrow the amount you require or give you a contribution towards your deposit.

• To view the Cumberland’s current range of mortgage & savings products go to www.cumberland.co.uk or better still, call into your nearest branch to speak to a member of staff. Your home may be repossessed if you do not keep up repayments on your mortgage.

First published at 14:22, Thursday, 05 April 2012
Published by http://www.cumberlandnews.co.uk