First time buyers are generally perceived to be hugely disadvantaged for a variety of reasons. Their credit history hasn’t had the chance to mature and they lack the substantial assets needed to secure a loan. Furthermore, in addition to savings needed for their deposit, they have to worry about all the initial administrative costs such as land tax, surveyor’s fees and removals/moving charges. It’s an uphill struggle for sure. But with the negatives also come the positives, some of which have been assembled in a short list below.
But before you plough in to these sensational advantages you need to think about the move! Who is going to be helping you move? That’s where we can help, check out the various towns and cities we cover in the UK for removal services.
No matter where you are we can find and recommend a good removal firm for you. Now that’s established read on and enjoy these advantages…
Establishing credit
Credit history, or the lack of, is probably the biggest hurdle that most first time buyers face when trying to secure a loan from a bank. Offering a loan to a person without any perceivable credit history is a high-risk move on the bank’s part. But at the same time, having a lack of credit history can be better than having poor credit history. And, in the current climate, as people struggle to meet payments, the prevalence of poor credit history is greater than ever. Because you have not been overburdened so far, you’re more likely to have a clear credit history to show off to the bank.
Chain free
Normally when you’re buying a house, you have to sell one. This is what people refer to as “the chain”, and it can lead to a great deal of stress. If the person you’re buying a house from hasn’t managed to find a property to move into yet, you’ve got to wait. But at the same time, if you haven’t found a buyer for your old house yet, the transaction is put on hold and you can end up losing out on your dream home due to the delay. The “chain” could theoretically go on indefinitely, and a simple change of heart or a financial problem can foul a whole series of transactions. As a first time buyer, the chain only operates in one direction.
Easier to save money
For those with a current home, they are burdened with their mortgage so it’s harder for them to save money. You, on the other hand, can move in with your parents or share rented accommodation with your friends. Additionally, many people have negative equity in their home as a result of the downward pressure on house prices; for you, none of that’s a problem. If anything, through the reduction in prices, it’s an opportunity.
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