Why your first property is not an impossible dream - Richard Lishman

By listening to the right advice, and being organised, purchasing your first property is an achievable goal. At the beginning of your dental career, when you have begun to put down roots in a practice, buying your own property will be the next obvious step. Of course, there will always be issues in the wider economy that may complicate the process, but it is always possible to overcome these.

One-hundred per cent mortgages are almost obsolete nowadays and the chances of them coming back are slim indeed. Low-deposit mortgages are still out there, and there are schemes you may not know about that can help of which you may be unaware. For example, the Government offers Help to Buy equity loans schemes, which are available to first-time buyers on newly built homes in England. You will need to contribute 5% of the property price while the Government provides a further 20% and then a mortgage covers the rest.

However, even with a low-deposit mortgage, your savings may not be enough. Many first-time buyers ask their family for help, but it is always prudent to document the arrangement thoroughly so everyone knows where they stand. The bigger the deposit you have acquired, the more options you will be offered. When you are looking at your savings, or when you are planning out how much you will need to save, you must not overlook all of the additional costs incurred when buying a property, such as mortgage arrangement fees and stamp duty.

In the current financial market, first-time buyers might benefit from a fixed-rate mortgage. With the Bank of England set to increase the base rate in 2016, anyone on a tracker mortgage will see monthly repayments go up. And with interest rates predicted to rise, if you are on a variable rate mortgage, you may find yourself struggling with repayments. One of the advantages of fixed-rate mortgages is peace of mind. You have no idea how your financial priorities may change over the next few years, so if your mortgage repayments are static, so much the better.

Of course, any advice on home-buying needs to be tailored to your individual circumstances. This is where working with an Independent Financial Adviser (IFA) can be most beneficial. By seeking out an expert who has experience of working with dental professionals, such as one of the IFAs at money4dentists, you can be assured that the advice you receive will be specific to the challenges you face.

Your first step onto the property ladder is just the start: by getting the right advice at this stage, and maintaining the relationship with your IFA, you can progress to making more personal and professional financial decisions in the future.  

For more information please call 0845 345 5060 or 0754DENTIST.

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