First Time Buyer Mortgages
What you need to know
While the myriad of financing options available to first-time homebuyers can seem daunting, it can save you a considerable amount of time and money to take the time to research the fundamentals of property financing.
A mortgage is a loan given to someone to help them buy a property if they do not have enough money to buy it outright.
A good mortgage broker will be with you every step of the way during your home purchase.
There are many rates available from fixed, tracker and variable rates. Which one suits you depends on your circumstances.
How to start with a mortgage?
While the myriad of financing options available to first-time homebuyers can seem daunting, it can save you a considerable amount of time and money to take the time to research the fundamentals of property financing.
A mortgage is a loan given to someone to help them buy a property if they do not have enough money to buy it outright.
You'll need to save a deposit, which is the amount you put towards buying your home. Deposits vary, depending on the type of property you would like to buy, as well as other factors.
A good mortgage broker will be with you every step of the way during your home purchase. They will advise on which mortgage to take and process the application holding your hand every step of the way until you move into your new home.
The first thing you need to get as a First Time Buyer is an “Agreement in Principle”. This lets you know how you can afford to borrow. You’ll usually find that estate agents want you to have an agreement in principle before you can make offers on property.
There are many rates available from fixed, tracker and variable rates. Which one suits you depends on your circumstances.
It's worth having a chat!
We know it gets confusing!
That is exactly why we’re here to explain your options and how to make it work for you!
....so, in a nutshell...
First Time Buyer mortgages recap
There are a whole bunch of benefits to reap from a first time mortgage, but it’s important to choose the correct one for your circumstances and any potential developments you plan in the near future.
With so many variables in play, it’s a great idea to work with a broker so that you can make as informed a decision as possible.
Click below for more info!
A mortgage requires a certain amount up front
Most lenders require you to have a deposit. You can get a mortgage without a deposit from several lenders but they have certain caveats to that. It’s always best to try to get a deposit and the larger the deposit the lower your interest rate. A deposit of 5% of the property value is normally required.
There are schemes to help First Time Buyers.
There are various schemes, soley available to first time buyers, that could help you in getting onto the property ladder. For example, the ‘Help to buy’ scheme has assisted many families find their new home together.
The ‘First Steps in London’ scheme has helped families stay close together, as young couples take their first steps together.
There are various schemes available to first time buyers that could help you onto the property ladder. Although Help To Buy is no longer available you may qualify for another scheme such as Shared Ownership.
Costs and fees
There are various costs and fees throughout the process and it’s helpful to know these so you can plan ahead.
- Stamp duty – This is a fee paid to HMRC to purchase Uk land and property, First Timer Buyers may be eligible to pay no or reduced stamp duty.
- Solicitors fees – this varies from solicitor to solicitor
- Lender arrangement fees – Fees charged by the lender which sometimes can be added to the mortgage so you don’t have to pay it up front
- Valuation fees – A fee you pay the mortgage company for a basic survey on your new property.
- Broker fees – some mortgage brokers charge a fee for their services.
You borrow in relation to your income
The lender will want to analyse your finances when you apply for a first mortgage.
They’re going to need to know how much you’re making, your monthly outgoings, and the cost of living. How much you will be able to borrow will be worked out by the lender.
Usually, a sum of five times your salary would be the total mortgage you’ll be given. But it may have been lower than this depending on how much deposit you have. Each mortgage offer is made on an individual basis.
Our role is to help you make an informed decision
There are many aspects to all types of mortgage and we understand that you need to make the best decision.
You will undoubtedly have many more questions, so please feel comfortable enough to arrange a free, no-obligation chat!
Frequently Asked Questions
Here are a few of the questions we regularly answer for those who are wondering if this is the correct choice.
Just remember, we’re ready to chat and answer many more!
You usually need a 5% deposit but some lenders do offer special deals to First Time Buyers where no deposit is required.
The loan-to-value is the percentage of your property which has a mortgage on it expressed as a percentage.
There are many types of mortgages for first-time buyers such as fixed rates and tracker rates. The type you choose depends on what you want. If you are someone who wishes to know what they are paying every month and do not want fluctuations in payments, then a fixed rate may be more suitable for you.
- Passport & Drivers Licence,
- Proof of address (utility bill dated within the last 3 months),
- Last 3 months payslips (if employed),
- Last 3 months bank statements showing salary credits and bills being paid,
- Last 2 years Accounts (if you are a Limited Company Director),
- Last 2 years Tax Computations (if your self employed),
- Last 2 years Tax Year Overviews (if you are self-employed)
Yes, getting a joint mortgage means you could borrow more and make the repayments easier to afford.
There are several rates available to First Time Buyers. They are Fixed, Tracker, variable, offset and discounted rates to name a few.
Here are a few of the questions we regularly answer for those who are wondering if this is the correct choice.
- Passport & Drivers Licence,
- Proof of address (utility bill dated within the last 3 months),
- Last 3 months payslips (if employed),
- Last 3 months bank statements showing salary credits and bills being paid,
- Last 2 years Accounts (if you are a Limited Company Director),
- Last 2 years Tax Computations (if your self employed),
- Last 2 years Tax Year Overviews (if you are self-employed)
You usually need a 5% deposit but some lenders do offer special deals to First Time Buyers where no deposit is required.
The loan-to-value is the percentage of your property which has a mortgage on it expressed as a percentage.
There are many types of mortgages for first-time buyers such as fixed rates and tracker rates. The type you choose depends on what you want. If you are someone who wishes to know what they are paying every month and do not want fluctuations in payments, then a fixed rate may be more suitable for you.
Yes, getting a joint mortgage means you could borrow more and make the repayments easier to afford.
There are several rates available to First Time Buyers. They are Fixed, Tracker, variable, offset and discounted rates to name a few.
