Stop Looking at Rightmove. Do This First

Now you’ve decided to buy your first home what’s the first thing to do? Open Rightmove, Zoopla or even TikTok to decide what will be your first dream home?

Before long, you will have saved six properties, decided exactly which area you want to live in and mentally moved in.

But stop! There’s a big problem if you’re using this approach.

You’re probably looking at houses before you’ve worked out what you can actually afford.

If you’re thinking about buying your first home in Washington, Sunderland, Newcastle or elsewhere in the North East, there are a few things worth doing before you start seriously house hunting.

1. Work out what you could realistically borrow

One of the first questions most first-time buyers ask is: “How much can I borrow?”

Unfortunately, there isn’t a simple answer.

Mortgage lenders look at your income, but they’ll also consider your existing financial commitments and individual circumstances when deciding how much they might be prepared to lend.

That means two people earning exactly the same salary could potentially have very different borrowing options.

So, before setting the maximum price on your property search, it makes sense to get a realistic idea of your budget. Our Mortgage Calculator can help.

The Government-backed MoneyHelper website has some useful information about buying a home and the costs you should consider.

Better still, speak to a mortgage broker about your own circumstances before you start looking.

It could save you from falling in love with a £250,000 house when your realistic budget is £150,000.

2. Know how much deposit you actually have

How much have you saved? And, just as importantly, how much of those savings can you put towards your deposit?

Remember, buying a house involves more than the deposit itself. There can be solicitor and conveyancing costs, surveys, mortgage-related fees, moving expenses and other costs to consider.

There may also be Stamp Duty Land Tax to pay depending on the value of the property and your circumstances.

If you’re a first-time buyer in England, you’re probably going to qualify for first-time buyer Stamp Duty relief unless you need to buy in the areas of the South East or London!

At the time of writing, eligible first-time buyers pay no Stamp Duty Land Tax on the first £300,000 of a property costing £500,000 or less, with 5% payable on the portion between £300,001 and £500,000.

So don't make the mistake of putting every penny you've saved into the deposit without thinking about what else you're going to need. And make sure you know about the mortgage deposit myth!

3. Take a look at your credit history

You don't necessarily need a “perfect" credit score to get a mortgage. But it does make sense to understand what's on your credit file before applying.

Check for things such as missed payments, outstanding borrowing or information that doesn't look correct.

This is particularly important if you've used credit cards, loans, car finance or Buy Now, Pay Later services.

CheckmyFilefor example, provides information about the credit checks involved when applying for a mortgage.

And don't automatically assume that something on your credit history means you can't get a mortgage. Different lenders have different criteria. It's often worth talking to a mortgage adviser before deciding for yourself that you won't qualify.

4. Look honestly at your monthly spending

It's also about whether

Think about where your money currently goes:

• Your car.

• Your phone.

• Subscriptions.

• Eating out.

• Holidays.

• Gym membership.

• Credit cards.

• Buy Now, Pay Later.

And yes, the occasional Deliveroo!

You don't have to stop enjoying yourself because you want to buy a house. But where you’re spending can help you work out what sort of monthly mortgage payment would feel comfortable.

There's an important difference between:“What's the maximum mortgage I could get?”and:“What mortgage could I comfortably afford while still having a life?”

5. Get a Mortgage in Principle

A Mortgage in Principle – sometimes called an Agreement in Principle or Decision in Principle – gives an indication of how much a lender might be prepared to lend based on some initial information about you.

Remember that isn't the same as receiving a formal mortgage offer. But it can give you a much more realistic idea of your potential property budget.

And that's when the Rightmove experience becomes much more useful. Because then you’ll know how much you’re being allowed to borrow.

6. NOW you can open Rightmove

Once you have all this in place, you can then start looking for a dream home you can afford! And you can start thinking about the things that actually matter.

Would you rather have a bigger garden or an extra bedroom? Do you want to be closer to Washington, Sunderland or Newcastle? How important is your commute?

Is that enormous kitchen really worth another £20,000?

These are much better questions to be asking than:“I wonder if they'll knock £50,000 off the asking price?”

Your first home should be exciting! Buying your first home can feel complicated. But you don't have to work everything out yourself.

How we can help

At The Mortgage Dog, we help first-time buyers understand the mortgage process without drowning them in jargon.

We can talk through your circumstances, help you understand what you may be able to borrow and look at the mortgage options available to you.

So keep Rightmove bookmarked – or Zoopla or other app you might use! Just don't make it your first step. Get mortgage ready first. Then start looking.

Thinking about buying your first home in Washington, Sunderland, Newcastle or elsewhere in the North East?

Talk to The Mortgage Dog and let's find out where you stand.

Your home may be repossessed if you do not keep up repayments on your mortgage