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First -Time Buyer

All You Need To Know As A First- Time Buyer

Am I Classed As A First -Time Buyer?

The term First Time- Buyer describes anyone who is planning to buy their first home, which is intended as a primary residence. Whilst it’s been notoriously difficult in recent years for a First Time Buyer to get a mortgage, knowledge and preparation can be key in securing a competitive offer and getting on the housing ladder.

Do I Need An Agreement/ Decision In Principle?

Although not a requirement, an Agreement in Principle (AIP) can be very beneficial to First -Time Buyers. Put simply, an AIP is a conditional mortgage offer from a lender, prior to your full application. Obtaining an AIP prior to making an offer on a property can help to convince the vendor that you’re a serious buyer. Some vendors can be reluctant to accept offers from a First- Time Buyer, so this can increase the chance that your offer is considered and accepted.

How Much Can I Borrow As A First Time Buyer?

Being a First -Time Buyer in itself shouldn’t impact the loan amount you are offered. As with other applicants, your loan is based upon your financial circumstances and credit score. Whilst the offers will vary from lender to lender, those with a higher income and stronger credit score will be offered higher value mortgages.

“Your home could be repossessed if you are unable to keep up your repayments on a mortgage”.

How Can Improving My Credit Score Help?

Your credit score has an impact on both the amount a lender is willing to offer you and whether or not they accept your application at all. It’s therefore essential to ensure you are aware of your credit rating prior to making an application. You should also take any possible steps to improve it, where necessary.

How To Improve Your Credit Score

  • Make sure you appear on the electoral roll at your current address
  • Ensure your current address is correct on all of your accounts
  • If you have any current credit agreements, stay within 50% of your available credit amount
  • Make full and timely payments on all accounts held in your name
  • If you have a low score due to a lack of credit, special credit builder credit cards can be helpful

How Much Deposit Do I Need?

It’s not unusual for lenders to ask for a higher deposit from First- Time Buyers. On a standard residential mortgage you should expect to need a deposit of between 10% and 20% of the cost of the property you want to buy.

For those unable to meet higher deposit requirements, there are government schemes available which only require 5% deposit and are aimed at helping First -Time Buyers get onto the property ladder.

What Help Is Available For First Time Buyers

Do you dream of buying a home one day? You know you can afford the mortgage repayments because they would be less than you’re paying in rent, but saving up the deposit is virtually impossible.

More mortgage lenders will be offering 95% LTV mortgages as banks and building societies pledge their commitment to the scheme.

Read on to find out how this new scheme could benefit you and your family, and how we can help you find the right 5% deposit mortgage to suit you.

Frequently Asked Questions

Do I need to have a good credit history to obtain a 95%Mortgage?

  • Yes, these mortgages are only available to borrowers who have a good credit rating.

How do I improve my credit rating?

There are lots of ways to improve your credit rating.  Here are a few:

  • Check your credit score with one of the well-known credit agencies.
  • Pay off any debt on your file and ask previous creditors to remove old paid-up debt.
  • Make sure your name and address are correct on the Electoral Roll.
  • Pay all your bills via direct debit so you can’t make a late payment.
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What other fees will I need to pay?

Other costs include Solicitors fees, mortgage fees, searches and surveys as well as insurance.

How Can need-a-mortgage.co.uk Help Me?

Then it’s time to get advice from a mortgage broker you can trust.  Using an online mortgage calculator is ok to get an idea of how much you could borrow, but we know it’s always best to talk to a real person.

We understand mortgages for families, so we’re best placed to help you achieve your dream of buying a home using a 5% deposit for a mortgage.  We’re here to help you through the process:

  • Get to know you and help find out what type of property you want to buy
  • Work out your budget, how much you can borrow and find the mortgage you need
  • Walk you through the costs that go with buying a home
  • Liaise with you to make sure you’re kept up to date on your mortgage application, every step of the way

Another option is the shared ownership scheme, which makes it possible to buy a share of the property. As your mortgage only has to cover the portion you buy, both the deposit and your monthly repayments are much more affordable. Bear in mind, however, that you will need to pay rent on the remaining share of the property.

What Fees Are Involved When Buying A Home?

Stamp Duty

Stamp duty – Please refer to the GOV website and update the stamp duty land tax information stated on the webpage – https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

Arrangement Fees

Mortgage lenders will ordinarily charge a fee for the arrangement of the mortgage. The amount varies from lender to lender and some offer no arrangement fees.

Valuation Fees

Mortgage lenders require that you have your chosen property independently valued and, again, these fees will vary.

Legal Fees

There are a range of legal fees payable during the mortgage application process, such as conveyancing and local authority searches. You will need to appoint a solicitor to carry out these functions.

Broker Fees

Our Mortgage adviser fees range from £399 for standard mortgage applications through to £795 for more complex applications, including ex-pat and adverse credit. We will discuss what we charge for our services at our first meeting.

How Can Need-a-Mortgage.co.uk Help First -Time Buyers?

Buying your first home is a huge responsibility, with long lasting consequences. Obtaining the type of mortgage best suited to your needs can be challenging and most First -Time Buyers will find using a qualified and experienced Mortgage adviser reassuring.

Mortgage Advisers have access to products not available on the high street and exclusive deals which enables them access to mortgage deals that you may not otherwise find. They can also advise you which lenders are most likely to accept your application before applying for a mortgage. This will save time, money and potential disappointment of a rejected application.

We are also able to do a FULL FREE REVIEW of your protection, including life insurance, critical illness cover and income protection. We will work in hours to suit you, so please get in touch with us today!

Why use Need-a-Mortgage.co.uk

  • CEMAP qualified advisers with a wealth of experience and knowledge to offer
  • We work around you and your hectic lifestyle
  • We’re here to make the mortgage journey easier from start to completion

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