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I cannot even believe that I'm making this video, guys. I'm a homeowner, and buying a property was something that I put off for so long because it was a concept that felt way too adult for me. I had no idea where to start, and to be completely honest, it just terrified me.
If there's one thing I wish I had before I started looking to buy my first home, it's a video just like this, where I'm going to be taking you through every single step, as time-stamped here, from saving your deposit to finding the perfect house, all the way through the nitty-gritty bits that you don't even think of, to finally owning your own home.
If you're new here, my name is Fay. I'm a medical doctor and YouTuber, and on this channel, you're going to find lots of content aimed at helping you live a happier, healthier life. Everything from finances to wellness to productivity. So, if that sounds like something you would like to see more of, then the subscribe button is just down there.
Step number one to buying your home is the "Oh, can I afford this?" moment. I know this is the scariest part, but without knowing the answer to this question, you don't have a starting point. So, how do you hope to have a goal to work towards? And a good way to properly assess your finances and thus your starting point is speaking to a mortgage broker.
Now, a huge regret that I had was not speaking to a mortgage broker sooner. And to be completely honest with you, it was because it felt really, really scary. When you speak to a mortgage broker, they'll generally ask for your payslips, your bank statements, they'll do a credit search. It's like getting naked financially. And if you're a bit of an impulsive spender like me, a stranger going through your bank statements is extremely daunting.
Once I finally got over that hurdle, I related it to my life as a doctor. The mortgage broker seeing your finances is a bit like a doctor seeing you naked. I have seen many a naked body as part of my job, and because of that, it's really not a big deal. If I'd realized that sooner, I would have been able to start looking for my perfect home way earlier.
Even if you haven't saved up a deposit yet, a mortgage broker is going to be able to tell you how much you could potentially borrow to buy your first home with your current salary and advise you on how much of a deposit you should save up for. If the idea of booking an appointment with a mortgage broker is still terrifying, lots of big, big banks also offer online affordability calculators and online applications for decision in principle.
Now, what is a decision in principle, I hear you ask? Well, a decision in principle is kind of like a promise of a mortgage. It's not legally binding. It kind of says, if all the information that you've given to us that we have not verified yet is correct, and your current financial situation does not change, this is the value we'd be likely to lend to you. Not only is this useful for you when deciding what your budget is, but also some estate agents may want to see a decision in principle before booking you in for a viewing.
Step number two, we need to talk about the generation gap trap. Once you have information from the mortgage broker or your decision in principle or your affordability calculator to indicate how much you could possibly borrow, now it's time to consider whether buying a home is actually in line with your financial goals. There are so many pressures around buying your first home. Maybe it's your friends buying their first home, or maybe it comes from your parents who've always said how important it is to get yourself on the property ladder.
For a lot of our parents, home ownership really was one of the greatest achievements you could have in your life. But guess what? Mortgages are still debts. Depending on the interest rate of your mortgage, you might be paying around 2 or 3 pound per pound that you borrow to buy your first home. And depending on your situation, it may actually be a more financially intelligent decision to invest the money that you would have spent on your first home than taking out a mortgage.
I explain how I personally invest on an average salary in my millionaire payday routine that I will link here. But obviously, whether you choose to buy or do something else with that money depends on so many personal circumstances like your current living situation, how much of a deposit you're able to put down, what area you live in, etc., etc., etc.
I personally made the decision to buy for a couple of reasons. Number one, the London rental market is a hell hole. Number two, the rent that I pay now is the same as my monthly mortgage repayments will be. Three, before looking at buying my first home, I actually built up an investment portfolio that I'm pretty proud of because, based on my research, that's what I wanted to prioritize for buying my first home. And finally, I found a place that made me want to part with that much money. I really thought that I'd make a decision based more on my head, but I remember just walking into the viewing of the place that I bought and just immediately felt something click. And I really can't imagine parting with that much cash without my heart being in it. And that might not be the most financially sensible advice I can give, but it's an experience I think is echoed amongst a lot of people when they buy their first home. It's such a unique decision, and it's best to do your own research, or even better, maybe make an appointment with a financial advisor to assess your options.
Step three, we need to find your magic number. So now you know what you can afford, and you've decided you want to buy, it's time to work out your savings goal. And I'm so sorry to break it to you, you're not just going to have to save your deposit. First things first, you should have an emergency fund. An emergency fund is at least three months' worth of living expenses, so that if you lost your job tomorrow, you could still survive for three months. So to get this figure, you take your monthly expenses and times it by three.
Then you need your deposit. This is normally 10% of the property price that you want to buy. Sometimes it can be 5%, however, this will likely mean your interest rate is a lot higher, meaning you pay back a lot more over the years. And if you can save up more than a 10% deposit, this will mean that your interest rate will likely be less, meaning you'll pay back less over the years.
And finally, you're going to need your buffer amount. This is what they don't tell you when you're going to buy a house. You think you've hit this monumental goal of being able to save up a deposit, and then, wham! Survey, solicitors' fees, mortgage broker fees, stamp duty. And we're not talking 20 quid here, 30 quid there, 50 quid there. No, no, no, no, no. £100, £700, two grand. The buffer amount will vary from property to property, but as a ballpark figure, you'll need to save about £2,000 for solicitor's fees, about £1,000 for a survey, £500 for mortgage broker fees, and you'll have to check if you have to pay stamp duty, which is a percent of the property that you're buying at the moment.
Now, first-time buyers in the UK don't have to pay stamp duty, but that might change in 2025, so make sure you check updated information on that. So to get your total savings goal, you're going to add your emergency fund, the value of the deposit that you want to put down, and finally, your buffer amount, including solicitor's fees, survey fees, mortgage broker fees, any furnishing costs, if the property needs any work doing like a new kitchen, a new bathroom, and stamp duty if you have to pay.
Now you have your savings goal, it's time to work out how much you could save per month, thus how long it will take you to reach your savings goal. To do this, you're going to need to know your monthly expenses. A Skillshare class that has helped me master my budgeting is "Learn How to Budget: Personal Budgeting Made Easy in 16 Minutes." Once you know your monthly expenses, you can work out how much you can afford to save per month. Once you know how much you can afford to save per month, you're going to take your savings target, divide it by the amount that you can save per month. This will give you the amount of months it will take you to reach your savings goal.
Now, in this economy, forget months. Your calculation may have told you it's going to take you 50 years to get to your savings goal. Even as a doctor, there is no way I would be able to afford to buy a flat in London by myself unless I had my business. So, if you would also like to start a side hustle in order to save for your own home more quickly, then I personally love the Skillshare class "Starting a Creative Business from Scratch: The Foundations" by Sean Dalton, which you can access completely for free because Skillshare are kindly sponsoring this video and are giving the first 500 people to click the link in my description a free one-month trial of Skillshare.
Skillshare is the largest online learning community for creatives, with thousands of classes led by industry experts across film, illustration, design, freelance, productivity, and more. So Skillshare is my go-to on-demand platform for taking your career skills, hobbies, passions, or side hustle to the next level. Another class I love if you're interested in improving your finances is "Modern Money Habits: Five Steps to Build the Life You Want." And once you've hit your savings target goal and bought your first home, you'll love "Interior Design Basics: Simple Steps to Your Perfect Space." I'm currently taking this class now in preparation for the big move because I find interior design so intimidating, but I found this Skillshare class has been so helpful in breaking down the basics so, so they're easily digestible, and I can watch the class wherever I am.
So, your challenge today, should you choose to accept it, is to sign up for a one-month free trial of Skillshare and complete "Personal Budgeting Made Easy in 16 Minutes" and start your journey to saving for your first home. But be quick, because the one-month free trial of Skillshare is only available to the first 500 people to click the link in my description.
Step number four, don't fall in love at first sight, but remember to take lots of pictures. When you're starting to get close to your savings goal, you can start arranging viewings. So here are my 10 golden rules for viewings that I definitely learned the hard way.
Number one, go to as many as possible. Not only are you going to get a much better sense of what you like and what you don't, but you're also going to understand what you can get for your money a lot better. When I was endlessly scrolling through Zoopla and Rightmove, all the numbers like the square foot, the years on the lease, even the prices, just seemed to get so muddled in my head. But when you go and see something physically, you can put those numbers into a context that makes so much more sense and is so much easier to remember.
Number two, you're going to challenge your non-negotiables. I know you have a vision in your head of what you want, so did I, and I ended up buying somewhere that was completely not what I expected at all. View different properties in a variety of areas, under budget, over budget, flats, houses. The only way that you're going to understand what you actually like is by seeing them in person. I really thought I wanted a project. I really wanted a property that was old and grotty and needed so much TLC, new kitchen, new bathroom, so that I could almost completely start from scratch. And then I saw the place that I ended up buying and also realized, who am I kidding? When on earth am I going to find the time to do up a property? I don't have any time as it is.
Three, remember that pictures lie. You're going to see a house on Zoopla that you think you're going to love, and then you're going to go to a viewing. I hate it. Firstly, they always use cameras with a wide-angled lens, so the properties always look way bigger on the pictures. But number two, there's so much about a property that you cannot convey in a 2D image.
Number four, do not get attached, especially if you're going on viewings before you've saved up your deposit. The reason I say you should start arranging viewings just before you've reached your savings goal is honestly just to maximize the amount of time you can spend getting a feel of what's available and what's on the market, and don't end up rushing into anything. But also, seeing the properties is probably going to give you that final push you need to get you over the finish line and reach your savings goal, especially when you're at the end and it's probably getting really difficult and you just want to spend a little bit recklessly again, which is definitely the place that I was in. I cannot wait to buy something impulsively and get a couple more Deliveroo's in every month, let me tell you that. But if you're doing viewings before you've saved up, you could very easily fall in love with a place, and by the time you reach your savings goal, it has been snapped up by someone else. And as much as you think you can't get attached to a pile of bricks, you absolutely can. I can't explain it. I was not expecting the emotional roller coaster that is looking for your first home.
Number five, you're going to bring a chaperone that is more than comfortable disagreeing with you. There was a property that I absolutely fell in love with, and the only reason I loved this property was that the living room was really open plan and it had stunning exposed brick. It needed a new bathroom and a new kitchen, which is manageable, that's doable. But the bedroom, the ceiling was like this, so there was virtually nowhere to put a wardrobe. It was really impractical in terms of storage. You couldn't even really put in most bed frames because the ceiling wasn't high enough. It was completely impractical. But me being me, and 4 foot 1, I didn't see the issue and I was completely blinded by the beautiful exposed brick in the living room. Luckily, my boyfriend is one of those people who is more than happy to disagree with me, and he was able to talk some sense into me that even if I wasn't bothered by the ridiculously shaped bedroom, I may find it harder to sell on afterwards because 4 foot 1 girls who would be okay with that are a little bit of a rarity.
Six, take so many pictures and videos. Your brain is like a sieve. You think you're going to remember what a place looks like, little features, things you like, things you don't like, and the moment you walk out that door, you'll forget everything. So pictures and videos to come back to when you're making your decision are so invaluable.
Seven is this Zoopla checklist that I'm going to link down below. When you go on viewings, it's so important to remember to check all the boring stuff like the water pressure, whether the windows have double glazing, the guttering. And naturally, you forget because you might see gorgeous exposed brick in the living room, hence the importance of this checklist.
Number eight, the neutral debrief. So after you finish the viewing, you're going to find a cafe, bar, park, restaurant within the local area so you can get a sense of the area around the property and also have a neutral space to have a debrief about what you liked and what you didn't like.
Number nine, if you're unsure, do not be afraid to ask for a second viewing. And finally, number 10, do not rush. If you're rushing, you're more likely to get pulled into a bidding war and end up paying more than you wanted to.
Step five, once you have found a property that you've fallen in love with, it's time to play detective. So you're going to need to know the answers to the following questions, and it's probably a good idea to try and get these answers on the viewing or maybe on a second viewing, so it's a little bit more natural than just emailing or calling the estate agent.
Number one, how long has the property been on the market? Number two, has the price dropped recently? Number three, this is a little bit more tricky to get your hands on, why is the seller selling? These are all clues to help you figure out the right offer to put in. For example, if the property has been on the market for several months and the price has been slashed a couple of times, that might be a sign that the seller really wants to get they sold as quickly as possible, and they might accept your offer if you put in something below asking price.
You can also ask the estate agent if they've taken many more people on viewings and if there's anyone else interested in buying. Chances are, they probably won't share this information, or if they do, they might lie a little bit to create this sense of urgency because they think it'll make you more inclined to put an offer in. But they might be honest, and it could be information that could help you negotiate. The place that I bought just had £30,000 slashed off the asking price. I ended up putting in an offer £10,000 below the new asking price, so £40,000 below the original asking price. It got rejected. We went back and forth a little bit, but I still ended up getting £35,000 off the initial asking price, which is pretty good. I think that is largely because I did my own research and I could see that the price had just been slashed.
Step number six, it's time to navigate the mortgage maze. Now, if you follow me on Instagram, you'll already know this is where my journey to buying my first home started to fall apart. Despite having a couple of decision in principles ready, my mortgage application was rejected, not once, not twice, but three times. Everyone's financial situation is different. Personally, my mortgage was rejected at this stage for a variety of reasons.
Number one, I'm self-employed. Sometimes it can be more difficult getting a mortgage when you're self-employed. If you have a good mortgage broker, they'll be able to talk you through the process and give you specialized advice for your situation.
Number two, when you're a resident doctor in the UK, you're normally on four to six-month contracts. So when normally for a mortgage, you'd submit three months of payslips, I ended up having to send in my previous 12 months of contracts working as a doctor and my 12 months coming up as well.
And number three, my favorite reason that I was rejected is that I work too many hours across two different income sources. Which, I'm assuming the thought process is that if I'm working too many hours across two income sources, I might be more likely to get burnt out. But I'm not too sure. I just found that hilarious because, you know what? I completely agree. I am at risk of burnout.
So here's the takeaway: not all mortgage brokers are created equal. Some mortgage brokers specialize in trickier situations, maybe if you're self-employed, you're on short contracts, or even if you've got a bad credit history. The mortgage broker that I used was Tempo. They were really good, they were really supportive when my mortgage was rejected, and they helped me finally lock in a deal. If you're also a doctor in the UK, it's worth having a look at the Medic's Money Mortgage Broker Finder. I'll link it below. But basically, they'll put you in touch with mortgage brokers who understand the situation of being a doctor in the UK. Also, mortgage brokers tend to not take a fee until the mortgage has gone through. So normally, your first meeting has no fee, no obligation. So it might be worth having a chat with a couple of different mortgage brokers. Just remember that getting a good mortgage broker could mean getting a better deal on your mortgage, so a lower interest rate, which could mean that you pay back less, potentially saving you thousands of pounds over the years.
Step number seven, it's time for surveys and solicitors. The boring but critical bits. Now, if you were to order from your favorite online shop, that shop would likely have a refund policy. As well as that, if you buy it using your credit card company, they will likely have a procedure to make sure that as a buyer, you are protected. Now, what protections do we have when we are buying a house? We cannot simply return the house, and the house costs significantly more than your last ASOS order.
So this is where the solicitor and surveys come in. As well as tying up all the legal bits like making sure that the property is transferred into your name, the solicitors also make a report on the property so that you're fully aware of what you are buying in. And a survey is conducted. So a qualified building surveyor will also do a detailed report of the property, again, to make sure that there's no hidden surprises. The solicitors are the same as the conveyancers, which I did not know. So every time I heard conveyancers and solicitors and surveys, I was thinking I was going to have to get three different things organized, but no, it's just solicitors and the survey. Definitely get a personal recommendation for your solicitor. Don't just go for the cheapest option, because the solicitor can have a huge impact on the timeline of the buying process. If you go for a cheap solicitor, it may drag out the process because they're not getting things done quickly.
Once that is all done, it's finally time for step eight, the final countdown. This is exchange and completion. So exchange is where your solicitors and the seller's solicitors exchange contracts. This is when you transfer your deposit to your solicitor's bank account. And then when completion is done, it's a done deal. The keys are in your hands. It is finally yours. For me, my solicitors needed a week before exchange and completion, but one of my friends, her exchange and completion was on the same day, but I think that's because she bought a new build.
Now you know all the steps to buying your first home, but if you're serious about taking control of your finances, you might want to have a look at my millionaire payday routine that I will link here or below. Below, it is a video that has been specifically recommended just for you based on what you like. If you did enjoy the video, please don't forget to like, comment, subscribe. I read every single one of your comments and I love seeing your feedback or ideas for new videos. I hope you have a wonderful, wonderful, wonderful week, and I will see you in the next video where I might be in my new home.