Buying your first home in Liverpool is both exciting and challenging. With so many things to consider, a lot of money to save and legal steps you have to take, it’s easy to feel overwhelmed.
You might be wondering: How do I choose the right neighbourhood? Can I afford a home in this market? Are there any hidden costs? Without taking into account a lot of information you need to know, you could make costly mistakes or miss out on your dream home.
With that in mind, we’ve created this straightforward guide to help Liverpool’s first-time buyers. From understanding the local housing market to managing your budget and mortgages in principle, these practical tips will set you on the path to confident homeownership.
Understand the Liverpool Housing Market
Before you begin scrolling Rightmove, it’s important to understand the state of Liverpool’s housing market.
According to Nationwide, the average UK house price was £269,426, up 4.7% from the previous year.
Whilst this gives a national average, the Liverpool housing market can vary significantly, especially in different areas of the city.
Rightmove states that house prices in Liverpool averaged £ 208,570 last year. However, this figure depicts an average across the city, and prices will, of course, be different in certain areas and for particular types of properties.
Identify affordable neighbourhoods
As with any city, Liverpool boasts a wide variety of neighbourhoods, each with its own characteristics and price range.
For first-time buyers, affordability is often a key consideration. We’ve provided an in-depth look at the best places to live in Liverpool, but you’ll also need to consider the average property price.
Neighbourhood | Average Property Price | Notable features |
Anfield | £117,013 | Close to the city centre, underground regeneration |
Wavertree | £164,574 | Popular for young professionals, good amenities |
Norris Green | £157,139 | Family-friendly - Close to Croxteth Country Park |
Kensington | £150,497 | Up-and-coming area, close to the city centre |
Look at your finances
Having a clear understanding of your finances is essential. Consider the following:
Deposit savings: Aim for a deposit between 5% and 20% of the property’s value. For instance, a 5% deposit on a £150,000 home will be £7,500. The more money you can put down, the cheaper your monthly mortgage payments will be.
Additional costs: Unfortunately, your deposit isn’t the only expense you need to save for. You also need to budget for expenses like stamp duty, legal fees, surveys, and moving costs. First-time buyers in England are exempt from stamp duty on properties up to £425,000, reducing to £300,000 on April 1st 2025.
Mortgage eligibility: Lenders assess factors like income, employment status, and credit history. Before you start your home-buying journey, check your credit score and address any issues.
Look at Government schemes and incentives
Several schemes are available to help first-time home buyers. Read the details to see if you’re eligible.
First Homes Schemes: This offers new-build homes at a 30% to 50% discount to local first-time buyers and key workers.
Lifetime ISA: This allows you to save up to £4,000 annually tax-free, with a 25% government bonus, to be used towards your first home.
Shared ownership: This enables you to purchase a share of a property (between 25% and 75%) and pay rent on the remaining share.
Secure a Mortgage Agreement in Principle (AIP)
By taking the time and forethought to get a Mortgage Agreement in Principle, you have a clear idea of how much you’re able to borrow. This helps you determine where you can look for houses and the type of house you’re able to afford.
Having an AIP will not only guide your property search but also demonstrate to sellers that you’re a serious buyer.
Work with local professionals
Work with local estate agents, mortgage brokers, and solicitors who can give you insights into Liverpool's property market.
Work with us, J & M Green Mortgage Services Ltd, where we can offer tailored advice and support to first-time buyers.
Make informed offers
As exciting as it might be, you want to avoid rushing into decisions. Compare similar properties in the area. This ensures that your offer aligns with market values.
You mustn’t try to overextend financially, too, as this could lead to difficulties down the line.
Plan for additional expenses
You need to consider additional costs when buying your first home and factor them in when maintaining it.
Beyond your monthly mortgage payments, you need to anticipate costs such as:
Home insurance protects your property, belongings, and repairs, depending on the type of plan you choose. The cost is determined by the amount of coverage you need, and you’ll need to update this information regularly to cover your property value.
Personal Insurances – such as life, critical illness and income protection cover. Although these are not mandatory with a mortgage, you are entering into a mortgage contract so it’s important to consider what could go wrong, we at J & M Green Mortgage Services Ltd will give you a full overview of the options and a tailored recommendation to protect you and your family.
Utilities and council tax are ongoing living expenses that you need to budget for. One important thing to remember is that council tax will also vary by area.
Stay informed about market trends
Various factors, such as economic conditions and government policies, influence the property market.
By keeping updated you are able to make informed decisions.
Buying your first home in Liverpool is a big milestone in your life. Our tips and guidance can help you start with vital information that will make everything a little easier and clearer.
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