It is often the case that first time buyers move into properties that need a lot of work doing to them before they can considered habitable. Or, even if the building is fit for habitation, it still needs a lot of work to make it more suitable or comfortable to live in. Naturally, such major renovations or essential home improvement jobs come at a price, and all at a time when the homeowner has just entered into a significant financial commitment in taking out a mortgage for the first time.
It comes as no surprise then that many first time buyers need financial help after they have bought their new home as well as before. If you are first time buyer, getting a home improvement loan with a favourable annual percentage rate can be difficult. Lenders are wary of your comparative lack of borrowing experience; you haven’t yet proved you can be relied on not to make repayments. Consequently, if you are looking for an unsecured personal loan, you may not get the deal you were hoping for. Nor is this best time for you to be thinking of getting a secured loan, and putting even more pressure on the security of your home-ownership status.
First Time Buyer Loans
Fortunately, local councils are on hand to give first time buyers extra help just when they need it most. First Time Buyer Loans are available from the housing department of your local council.
They are designed to assist first time buyers who are looking to buy properties that will need significant renovations or repairs. Alternatively, these loans can be used towards the amount you need to raise for a deposit. They are awarded to deserving applicants on a case by case basis. Exactly how much you can borrow, and under what precise terms, will depend on your situation and your local council’s lending criteria. For more information, contact your local council directly. View Council List.
Getting the funds for significant rebuilding jobs
The state of the property you are thinking of buying will be factored into the terms of your mortgage. If you are thinking of buying a property that needs major renovations in order to make it habitable, it is possible that the best course of action available to you is to get a self-build mortgage. This should allow you to receive the money you need for you to renovate the property satisfactorily, and then pay it back in a timely and convenient manner. See How to Get a Self Build Mortgage for more details.
Alternatively, you may need to seek advice from a lender that specialises in renovation and major home improvement tasks. These will be able to help you find a solution that allows you to receive the money you need in installments, as each stage of the work is completed, and then pay it back in a reasonable time frame. Remember, always get more than quote, and seek independent advice if there’s anything you are not sure about.