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5 things every first-time buyer should know in 2025

Writer's picture: Mortgage TreeMortgage Tree

The 2025 property market is shaping up to be full of opportunities. With wages rising faster than house prices and interest rates expected to fall, affordability is improving for buyers and sellers alike. Whether you’re a first-time buyer ready to take the plunge or a homeowner considering your next move, understanding the market is key.

Buying your first home is an exciting milestone, but it can also feel overwhelming. With the property market evolving and new challenges in 2025, it’s important to be well-prepared before taking the plunge.


Here are five essential tips every first-time buyer should know in 2025:

1. Understand the impact of the stamp duty changes

In April 2025, stamp duty changes will take effect, impacting buyers across the UK. As a first-time buyer, properties priced under £300,000 will remain exempt, but those between £300,001 and £500,000 will incur a 5% rate on the portion above £300,000.

Before you start house hunting, make sure you factor in these changes to avoid unexpected costs.


2. Get your finances in order early

Saving for a deposit is just one part of the financial equation. In 2025, with mortgage interest rates slowly stabilizing, it’s essential to understand what you can afford monthly and what additional costs may arise.

  • Check your credit score: A strong credit score can secure you better mortgage deals.

  • Save for additional costs: Budget for solicitor fees, surveys, and moving costs.

  • Get a mortgage in principle: This shows sellers you’re serious and financially prepared.


3. Location, location, location

Where you buy is just as important as what you buy. Consider factors like proximity to work, schools, transport links, and future developments.

2025 is likely to see continued growth in regional hotspots like Norfolk, the North West, and the Cotswolds, where affordability meets quality of life. Research thoroughly to find a location that balances your needs and offers long-term investment potential.


4. Know what to look for at viewings

When viewing properties, it’s easy to focus on aesthetics. But first-time buyers should dig deeper:

  • Check for hidden issues: Look for damp patches, structural cracks, or outdated wiring.

  • Consider future costs: Properties needing major renovations may seem cheaper upfront but could strain your budget later.

  • Think long-term: Will the property suit your needs in five or ten years?

Ask questions and don’t be afraid to arrange a second viewing for a closer inspection.


5. Don’t forget about government schemes

In 2025, several government schemes are still available to help first-time buyers:

  • First Homes Scheme: Offers discounts of up to 30% on new-build properties for eligible buyers.

  • Shared Ownership: Buy a portion of a property and pay rent on the rest, with the option to increase your share over time.

  • Lifetime ISA: Save up to £4,000 a year and receive a 25% government bonus toward your deposit.

Understanding these options can make homeownership more accessible and ease your financial burden.


Ready to take the first step?

Buying your first home is a big decision, but with the right preparation, it can be an exciting and rewarding experience. Start by finding out how much you can afford by contacting Jason at Mortgage Tree 01904263012 or on Whats App 07773064911. You can also contact us on email: jason@mortgage-tree.co.uk


Article from Yopa written by Joey D'Rozario

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Mortgage Tree - Mortgage Advisors York - Services & Standards

Mortgage Tree offers a nationwide mortgage broking service from our base near York, North Yorkshire. We specialise in mortgages and insurance. Whether you are a first time buyer or you are a buy to let investor with multiple properties, Mortgage Tree will ensure that you get the most suitable products available.

We are a Whole Of Market broker which means that we will choose the most suitable mortgage for you from the hundreds available on the UK mortgage market. Our network also gets specially discounted deals from lenders which are available to our network.

 

We also provide insurance cover that will give you & your loved ones a blanket of protection that is so vital. We will endeavour to give you the best service that we can at all times.

Jason Gentles t/a Mortgage Tree  (FCA No. 502275) is an appointed representative of Julian Harris Mortgages Ltd (FCA No. 304155), which is authorised and regulated by the Financial Conduct Authority.

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Please note that some mortgages such as commercial BTLs are not regulated by the FCA.

The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

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