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2013; the perfect time to get on the property ladder

One aspect of the initiative is to offer interest free loans of up to 20 per cent of the value of the property. The buyer will need to raise a 5 per cent deposit in addition to the 20 per cent provided by the government, meaning 25 per cent of the property’s value will be laid down.

The second part of the scheme is a mortgage guarantee which will be sold to lenders, allowing them to offer mortgages for deposits that are between 5 and 20 per cent. Buyers will only need to contribute 5 per cent of this, with the remaining 15 per cent guaranteed by the government. To take advantage of this initiative, 2013 is the perfect time to start looking at new properties for sale. Here are some top tips for people looking to get on the property ladder this year.

Start saving now

Even with the additional help provided by the government for first time buyers, you will still need to raise a 5 per cent deposit, which may require some forward planning. Go through all your earnings and outgoings to see if there are any expenses you can cut out or cut back on, such as alcohol, takeaways or petrol.

Choose the right mortgage

Because there are a few different kinds of mortgage, is it important to make the effort to understand them all so you know which one best suits you. This includes looking at the rate of interest and how much this is likely to increase. You will also need to take into account the amount of time you will be repaying for so you can plan accordingly.

Choose the right location

Although it is important to like the area you live in, many people pay more than they need to for a property because of things like proximity to a city centre. You will get more for your money if you are willing to venture further afield, as the further away a property is from a large town or city centre, the larger and more spacious they tend to be, not to mention garden space. You will also need to take into account the cost of your daily commute from where you plan to live, whether it is by car or public transport.

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