What is it really like to buy a house today?
I’m buying a house. That is a wild achievement for anyone of my generation (younger millennial) to reach. There are a number of privileges I’m lucky enough to have that have led me on this path, but that’s not to say I haven’t worked my arse off to surpass what that privilege level has offered me. I’m proud of myself for reaching this far!
All that to say I thought I would share what it’s really been like as a first-time buyer in the UK. Here are some things to bear in mind and the step-by-step process I’m going through to make my dream of owning my own space a reality.
1. Savings
Bro, girl, mate, you have to save a lot. Scrutinise every non-essential purchase you make with the thought that that money could be going towards your future house instead of that one-off item. That said, trade off what it means to you to have a good time now in your current younger years (however “young” that may be) with future housing security. Personally, I think I went a bit too hard with savings earlier on to the detriment of my happiness and enjoying life with friends. I softened my savings strategy in the last couple of years and allowed my disposable income to be used on my multiple hobbies. I’m still a cheapskate, but at least now I’m actually doing things that makes me feel good rather than staring lifelessly at YouTube every evening.
I’m not about to start giving financial advice, but consider the fact there is more to life than a “dream house”, just as there is more to life than the rarest Pokemon card out there. (That is as much a dig at myself than at anyone else!)
2. Searching for Houses and Mortgages
Use Rightmove (other websites are available) to look at what houses are on offer in the areas you’re interested in. Then, you can start to build up a picture of the size and style of house you like and what is in your price range. Bear in mind that your “price range” may depend a lot on the amount of deposit you can raise as well as the likely work that you’ll need to put into the house once you’ve bought it.
In most cases, you will need at least 10% of the house price in a lump sum deposit, and the remaining house price can be drawn from a specific type of loan called a mortgage. Mortgages are secured against the house itself, so if you can’t keep up with the loan repayments then your house may be repossessed (more on that later). There are lots of different types of mortgages out there, so you will want to look into your financial situation in a lot more detail at this point too and see if you qualify for the other products banks may offer. If you’ve already got a handle on your finances, it should be quite straightforward to look at the information online and see what fits your situation.
Once you have a budget and rough idea of what kind of house you’d like, now the fun can begin! Start viewing houses. Even if you’re not sure about one, dive right in – you’ll soon know what you like and don’t in a house and location.
Personally, I decided to only look at new build houses. New builds have been recently (or are soon to be) constructed by a housing developer to very high modern standards and do not require immediate renovation or DIY work. For me, DIY is something I do slowly and carefully, and I have a busy enough life as it is to worry about repairs in my living space, at least in the near future. Plus, the environmental credentials are very good – look out for an energy performance certificate (EPC) rating of at least a B and solar panels or heat pumps. I prefer a heat pump over solar panels due to their reliability and efficiency (seek your own references before making a decision).
3. Sealing the Deal (New Build Incentives)
Take someone experienced with you when making offers and finalising the deal. They’ll offer a helpful and comforting perspective when the conversations get tense.
For new builds, know that there are always incentives on the table, all you have to do is ask. Most developers will offer incentives up to 5% of the purchase price; meaning for a £400,000 house you could get £20,000 in incentives. This could be split between a contribution to your initial deposit, towards legal fees, stamp duty, or any “upgrades” they might offer. Note that “upgrades” can include essential items like flooring (yes really) and tiling, both of which could cost up to £10,000 depending on what you go for!
I was very nervous about negotiating on the incentives, but bringing my mum along really helped. She asked for a slightly better deal than I would have and framed it in a way that meant the developer couldn’t say no. She said that I was nearly going to buy a different house from a competitor, which was half true, and I think that really motivated them to seal to the deal.
4. Paperwork
Paperwork takes much longer with many more hoops to jump through than you first think. Just when you think you’re done, a mortgage advisor or solicitor will pop up with another form or question that needs answering. Truth be told, I’m still in the paperwork phase and it is definitely a test of my patience.
Choose a local independent solicitor that has good reviews online. Trust Pilot, Reddit and any other review sites are your friends. Ask for quotes before committing to anything and if you can, try and find a solicitor that specialises in your house purchase (mine says they’re a specialist in new builds, for example). It might not mean much and may just be an advertising trick, but it may help in the long run.
While I’d love for this post to be more about community ways of living, right now my reality is about being able to take pride in my own space from which I can start cultivating that community. It’s not a super solarpunk post, but I’m hoping this will get me out of the writer’s block rut so that I can write more inspiring posts this year. Thanks for bearing with me, feel free to ask any questions or suggest new topics for me to talk about in the future!