First Time Buyer Mortgages
As a first time buyer your first home is going to be one of the most significant investments in your life. So, we’ve put together a short guide to help you understand the key terms, the whole process, what to expect and when, making buying your first home a breeze.
Should I use a Mortgage Adviser?
We’ve helped many first-time buyers achieve their dream of homeownership. We are knowledgeable about the local market and passionate about making the whole mortgage application process as straightforward, easy, and enjoyable as possible.
How we work:
- We work flexibly around your busy schedule, and we’re happy to talk on the phone, Zoom, Facetime, text, or email to get the job done
- Access to the whole of the market and specialist first time buyer lenders, so we can find the best mortgage to fit your situation
- No complicated jargon – we tell you how it is and get the job done
- Access to mortgage deals that are not available when you go directly to a lender, bank or building society. We are experts on the mortgage application process, This means you will end up with a mortgage that suits your needs and you can save money and time.
If you cannot find the answer to your question, give us a call on 0800 1 777 333 or drop us an email and one of our mortgage advisors will get back to you within 24 hours to help in any way they can.
What is a first time buyer mortgage?
First time buyer mortgages, if you’re unsure, are aimed at those who have not yet owned property. This means that effectively, you don’t have anything to sell.
A mortgage is a specific type of loan used by many first-time buyers to buy their property. With a mortgage, you will have to pay back the money you have borrowed plus interest. Most mortgages are set over longer periods of time, normally at least 25 years.
You pay back a sum each month, which goes towards paying off the amount you borrowed plus interest. You’ll need a deposit to secure a mortgage, at least 5% of the value of the property but normally more. If you don’t make your monthly repayments, the mortgage lender has the right to repossess your home.
How Do Mortgages For First Time Buyers Work?
When you start to apply for a mortgage as a first time buyer, your lender will need to assess your affordability. To do this, they will look at your annual salary, any other income you may receive and all of your outgoings. This includes debts, credit card payments, household bills and childcare.
Alongside this, they will also check your credit history, as this will give them an idea as to whether or not you’re a reliable borrower, effectively using it as an affordability assessment.
You will find that most mortgage providers have a maximum loan-to-value that they are prepared to offer you, which is essentially the maximum loan you can take out as a percentage of the overall property value.
In comparison to standard mortgages, first time mortgages often have different rates based on credit history and affordability, as they don’t have a past mortgage to base the assessment on.
How To Arrange A Mortgage?
Before you start to view any potential properties, you may want to consider getting a mortgage agreement in principle form a mortgage adviser.
Essentially, this will give you an idea of how much you can borrow at the same time as showing estate agents that you’re serious about buying.
As mentioned above, you will need to provide evidence of your income and your outgoings, which may result in having to produce payslips and bank statements. For those that are self-employed, you may be asked to provide your tax returns for as many as two years.
How Much Can You Borrow?
The amount you can borrow really depends on the income commitments you have when you apply for your mortgage. In most cases, you will find it’s roughly four times your annual salary.
How Much Deposit Will You Need?
Finding a deposit is a common worry for first time buyers, as in most cases, deposits are around 10-15%. Certain schemes may be available with a deposit of 5%, however.
What Will My Repayments Be?
Your repayments will be determined by the amount you borrow, the rate and any fees that need to be added. Terms are usually flexible and you can set them to suit you.
For more information when it comes to mortgages for first time buyers, please do not hesitate to get in touch with a member of our friendly team and we will be happy to assist you.
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