Buying your first home is a milestone. Given it is likely to be the biggest financial commitment of your life, it can also be pretty daunting. Leading UK mortgage lender Halifax has the knowledge and expertise to support first time buyers in the quest to own their dream home. It brings a wealth of experience to the process, not least as the source of The Halifax House Price Index (HPI), the UK’s longest running monthly house price tracker.
Founded in 1983, the HPI logs house prices around the country on a monthly and an annual basis. It has charted more than 40 years of fluctuations, from the boom of the 1980s when prices rose 49.4 per cent, into the downturn of the early 1990s when interest payments hit 27 per cent, through the upswing of the Noughties and the impact of the 2008 crash, then into the 2020s with the pandemic and, now, high inflation.
With expert advice from an experienced lender, navigating the mortgage maze can be easier than you might expect
All the right moves
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First time buyers can relax in the knowledge that they've done their homework
Home sweet home
Settling in is the fun part after all the hard work and planning is done
‘We wanted someone we could trust,
with that amount of money at stake’
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Unless you’re one of the super-rich, you’ll need a deposit and a mortgage to get on the property ladder. With rising costs, this can pose a major barrier to first time buyers. However, Halifax supports a range of government-backed schemes designed to help.
First Time Buyer
If one of the applicants has never owned a property, they can (until the end of this year) apply for a government-backed First Time Buyer mortgage through the usual Halifax application process. This guarantee scheme only requires a 5 per cent deposit. To qualify, the property needs to be approved (no new-build flats or buy-to-lets) and less than £570,000 in value.
Family Boost
Halifax’s Family Boost mortgage allows a family member to put down 10 per cent of a home loan of up to £500,000 into a three-year fixed term savings account. When that fixed term ends, they get their savings back with interest, if your mortgage payments are up to date. Meanwhile, your mortgage rate stays the same for three years (but no new-builds or self-builds).
Help to Buy
Although this scheme is closed to new applications, it’s still possible to save and claim the government 25 per cent bonus (up to £3,000) if you already have a Help to Buy ISA up and running. You can transfer an existing ISA to the Halifax and the bonus can be claimed up to November 2030.
Get a leg up on the ladder
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Year on year, the HPI reveals the nation’s most popular locations and highest house price growth. The data it tracks is how we know that Eastwood, in Nottinghamshire, was the property hotspot of 2022, why property in the south remains the best long-term bet, and that the value of homes in Margate, Kent, has almost doubled since 2012 (as shown in the annual Halifax Seaside Town Review). That sort of background knowledge is invaluable when it comes to assisting first time buyers.
With average house prices at £281,684 in January, people want to know whether they can buy with confidence. The HPI provides an accurate indication but, beyond that, Halifax has a number of useful ways to support potential homeowners in navigating the hoops on the buying journey. That begins with explaining and steering them through what can often be seen as a complex process.
To start, the Halifax website features an invaluable guide setting out each stage, including what a mortgage is and how it works, the various types of mortgages available, how much deposit you might need, and what an Agreement in Principle is. It also provides a handy map tool that prospective buyers can use to check out a location, discover useful information and search for important amenities, including local schools, supermarkets and GP surgeries.
The bank swiftly put together an Agreement in Principle, which allowed the couple to reserve the property with the developer. A month later they chose the fixtures. Just six months later they moved in. “It was a really smooth process and when we did need some advice Stephanie was always available,” Adam says.
“When you have to deal with something as big as buying a house and getting a mortgage, you want a known brand. I wanted someone I could trust, with that amount of money at stake. Plus, we got £250 cash back through the bank’s Green Living Offers scheme because of the home’s high energy rating.”
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Adam Cooney had a plan. He wanted to buy his first home before he was 30. The hospital porter from Louth, Lincolnshire, had gone as far as contacting his bank, the Halifax, in 2012 but decided to buy a car instead – as you do when you’re 20 years old.
Ten years later, and now engaged to partner Lucy Harvey, a domestic assistant at the same hospital, time was running out. The couple began looking for homes and made a decision the day after Adam’s 30th birthday in January last year.
“We found a three-bedroom new build with a garage in a quieter area than we were living in,” Adam says. “We contacted Halifax through its webchat and the same person I’d spoken to ten years previously, Stephanie, came straight back to me.”
Smooth operators
your best place to live
There are plenty of other ways to learn about the buying process through Halifax. Last year it introduced a podcast, Home Truths: The First Time Buyer, made with finance expert Mr MoneyJar. Or you could sign up to a Virtual First Time Buyer Event, in which advisers discuss the home-buying journey and offer practical guidance.
Additionally you can chat to one of the bank’s mortgage advisers and make an appointment in branch, over the phone or by video, including evenings and Saturdays.
Whatever your queries or concerns, Halifax will be there to answer them and support you on the journey to owning your first home.
First time buyers could claim £500
towards green home improvements
The twin issues of climate change and high energy costs mean that
the sustainability credentials of properties are becoming a major consideration for potential buyers.
The Halifax website has a Green Living hub that is dedicated to giving help and guidance on how to make a small difference in our homes that could save us a few pennies and help the planet. It includes a tool that reveals how energy-efficient your home is.
The bank has also launched the Green Living Reward. This applies to
first time buyers, home movers and customers who are switching to Halifax while taking out additional borrowing or further advances for improvements. Subject to availability, they can claim £1,000 towards
the cost of installing a heat pump or £500 towards other eligible green home improvements such as insulation and solar panels (if they apply for a qualifying mortgage by April 30, 2023). Halifax has also teamed up with Octopus Energy to help make heat pump installation easier and more affordable.
Finally, there’s a £250 cashback offer that can be taken up by first time buyers purchasing a home with an A or B rated Energy Performance Certificate (EPC), as well as by homemovers and remortgagers.
Sustainable homes
From Agreement in Principle to moving in? Here’s how one couple did it in just seven months
The lowdown on which schemes might help you
take a first step into the property market
Next chapter
Adam Cooney and his fiancée Lucy Hervey are delighted with their three-bedroom new build