Signs that show you are ready to buy your first home

You have a steady income

Do you have a steady income? Then you’ll likely find it easier to secure a mortgage from a bank.

If you’re freelance, have an unpredictable income or have just started a new business, it could be harder to find a mortgage lender, but it’s still achievable. You’ll just need to shop around for a deal that meets your needs.

Ensure you can comfortably afford monthly mortgage payments on your income, too, factoring in everything from moving fees to living costs. According to the HomeOwners Alliance, it’s best to commit no more than 35% of post-tax income to your mortgage ¹.

Your credit score is strong

When asking yourself, ‘Am I ready for a mortgage?’, you’ll need to assess your credit score as well as your income.

A potential mortgage lender always begins with background checks, which include calculating a credit score based on your credit history. A poor result will affect the chances of your application being accepted.

You can easily view your credit history for free on the websites of credit reference agencies Equifax, Experian and ClearScore. If your score isn’t what you expected, head to our helpful article on improving it below.

You can afford the deposit and moving fees

Having a deposit saved is one of the strongest signs you are ready to buy a home. The standard minimum deposit is 10% of a property’s value ². However, purchasing with a 5% deposit can usually be arranged by your mortgage adviser.

There’s also plenty of help available to make your budget go further. For example, David Wilson offer a variety of house-buying schemes such as Deposit Unlock, which enables you to buy a new-build home with just a 5% deposit, and access competitively priced mortgages.

It’s also important to calculate the hidden costs of purchasing a home, such as legal fees, a conveyancing survey, and Stamp Duty, a tax based on the value of your home. Unsure where to begin?

You’re facing a life change

A major life change could be another of the signs you are ready to buy a home.

Whether you’re taking the next step in your relationship, starting a family, climbing the career ladder, or facing a rent rise, buying a house gives you a solid foundation while unlocking new possibilities.

From choosing a neighbourhood with good schools to decorating the home office, your first home should work around your lifestyle and priorities.

Your rent is increasing

When are you ready to buy a home? For many people, an increase in rent helps speed the decision along.

In September 2019, there were 120,620 new rental listings in the UK, priced at £1,290 on average. In September 2022, rental listings had dropped by almost a third, while prices rose by more than a fifth ³.

Faced with growing costs, the stability of homeownership is even more appealing – along with the freedom to make changes to your home without having to run them past a landlord.

You’ve found an area you love

If you’re still unsure where you’d like to settle long-term, the flexibility of renting is a great draw.

But, if the area you’re currently living in meets all your needs – whether these are good transport links, top-rated schools or a strong sense of community – this is one of the signs you are ready to buy a home with confidence.

Even so, it’s best to keep an open mind when house-hunting. If you can’t find the ideal home in your current neighbourhood, you may discover a location and property that are even better suited to your needs and budget elsewhere.

You want to invest in your future

Rather than investing your hard-earned money in a home of your own, renting means lining another person’s pockets each month. Buying your first home is a great building block for your future, adding a valuable asset to your portfolio.

Most mortgages are 25 years long, so the sooner you purchase a property, the faster you can build up equity. This means by the time you retire you could enjoy some much-deserved financial freedom – entirely mortgage-free.

Am I emotionally ready to buy a home?

Buying your first home is one of the biggest steps you’ll take in life, so make sure you talk through your decision with close friends and family, especially those with homeownership experience.

Be sure to explore your options fully, assess the pros and cons, and, most importantly, make sure you enjoy your house-buying journey – you only purchase your first home once.

Discover the benefits of a David Wilson home

A high level of quality runs through each of our homes, thoughtfully designed with energy-efficiency in mind.

In fact, a David Wilson home could be up to 58% cheaper to run, saving you up to £2,600 per year on energy bills – a great way to start your exciting new chapter.
Ready to make your move? There are a range of house-buying schemes that could enable you to purchase a spacious David Wilson home with just a 5% deposit.

¹ How much can I afford to borrow a mortgage?, HomeOwners Alliance
² How much deposit do you need for a mortgage?, Which
³ Why is the UK's rental market in chaos?, Sky News