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This is the first of a regular series of articles which, I hope, will help first time buyers in the process of property buying.

How much can I borrow?

The first thing first time buyers need to consider when buying a property is how much they can borrow. Using traditional income multiples, this can amount to around 3.5 x a single salary (or can be less), or if you are buying with someone else � up to 2.75 x joint salaries.

However, some specialist mortgages will now allow you to borrow more than this. An increasing number of lenders are now also ditching income multiples in favour of ‘affordability criteria’. This takes into account all your usual monthly expenses and assesses whether what remains is enough to support your mortgage repayments.

If you are buying alone but want to rent out a room in your property to help with the cost of the mortgage, the first �4,250 you receive in rental payments is exempt from tax. Visit HM Revenue and Customs (formerly the Inland Revenue) for full details.

Legal costs.

Costs will include conveyancing, stamp duty, searches and possibly agreements and wills.

The Rent a Room scheme

If you decide to rent out a room in your property to a lodger, the first �4,250 you earn this way may be exempt from tax, which may make your mortgage more affordable. Visit the Direct Gov website for full details.

Estate agents and homefinders

The traditional way for first time buyers to find the property you want is to register with estate agents selling houses in the area where you want to buy. This will be free of charge, as the estate agent’s fee is paid by the vendor, not the buyer.

You should visit in person so that the agents can get a feel for what you want. The details you will need to give will be: city or town, preferred area, number of bedrooms needed, bathrooms and reception rooms. They also need to know your maximum price and what type and style of property you prefer.

After discussing your requirements and expectations, they will send you details of relevant properties or phone you with the ones they think are especially suitable.

You can then view the properties you like by making an appointment with the estate agent. The agent may or may not accompany you to the viewing.

For the best results, first time home buyers should stay in regular contact with your estate agent(s).

If you like a house that you view, the vendors may issue you with a Home Information Pack (HIP). This will become the law from 2007, but some vendors are already choosing to use them. The HIP includes a survey and local searches related to the property, which has been compiled in advance. The HIP will allow you to read a home condition report and it will give you an idea of utility and council tax bills.

Some owners now use online agents or websites to advertise the sale of their house, so keep a lookout here too.

Some people cut out the estate agent altogether and sell their home privately by advertising in local or national property newspapers, or the Internet. In these cases, contact the owner direct.

If you have very little free time to house-hunt, there are companies that will search for a property on your behalf and will even shortlist and view properties for you.

Before making an offer to buy a property, make sure you have considered the following:

Commuting times

Distance to mainline stations or motorways

The length of the chain you are buying into

The structural and decorative condition of the property

Any development or proposed development in the area

Businesses or schools nearby

Resaleability of the property, and so on.

When you have found a property you would like to buy, you make an offer �subject to contract�. If you have not already seen a survey in the HIP, it will also be ’subject to survey’.

Establish which fixtures and fittings are for sale, and be prepared to negotiate. (As a benchmark, fixtures and fittings are the things that, if you turned the house upside down and shook it, would not fall out.)

Useful websites

www.naea.co.uk - the National Association of Estate Agents (industry body)

www.estatesforum.co.uk - a community website offering independent advice to homebuyers

Note: House buying and selling procedures are different in Scotland. When an offer has been accepted on a house, it becomes legally binding.

This means the buyer cannot pull out at the last minute, a practice known as gazumping. In addition, most residential estate agency except in some parts of Glasgow is handled by solicitors, who have developed regional marketing co-operatives through Solicitors� Property Centres. Several of these also provide advice on mortgages and other financial services.

Helen Adams

FirstRungNow.com