Mortgage For First Time Buyers
Everyone that owns a home once started off as a first time buyer. We appreciate how daunting the prospect of buying your first home can be and we are on hand to help every step of the way! In our initial appointment we will work out your maximum budget, talk you through the home buying process and go through a budget planner so you can see what your future outgoings will be. We will then compare your mortgage options and get an agreement in principle for you so you can confidently put offers forward to estate agents. Unsure how to do this, just let us know and we can guide you or do this on your behalf if you prefer.
Once you have an offer accepted it’s time to get the application underway and instruct solicitors. We can recommend local solicitors if this is helpful to you. We will be in regular contact right up until you collect your keys (and after if you like) to answer any questions you may have, get updates from the solicitors and estate agents and help you with the solicitor’s paperwork.
Want to buy your first home? Call today on 01603 555428
Other schemes for first time buyers
Getting a mortgage with a help to buy equity loan
This is only available on new build properties sold by a Help to Buy registered homebuilder. This may increase your budget and we can help with all aspects of the process including applying for the help to buy loan on your behalf. You need a minimum 5% deposit and can then borrow an equity loan from the government to cover from 5% and up to 20% of the purchase price. If the property is in London, you can borrow up to 40%. The first 5 years of the loan are interest free. This scheme is currently due to end on 31st March 2023.
Shared equity mortgages
Similar to help to buy. Usually purchase for 75% of the full market value. There is often no rent/interest payable on the remaining 25% which can then be purchased in the future. There can be further requirements.
Shared ownership mortgages
This may be an option if your budget is limited. You buy a share of a property (minimum 10%) and pay rent to a landlord (usually housing association or local council) on the rest. There are banks that will lend 100% of the share price purchased. You can ‘staircase’ to own extra shares of the property in the future. The higher percentage you own the less you pay in rent. You can also buy a shared ownership property if you have previously owned a home.
Discounted market share mortgage
This is where a property is sold for a percentage of the full market price and the other share cannot be purchased. Usually there is a requirement to have a link to the local council/area. Often known as a section 106.
Guarantor mortgage/Joint borrower sole proprietor
If needed a parent could be used to increase your borrowing capability. With the additional stamp duty for second home owners it is harder for parents to help their children if they are struggling to get a good level of borrowing on a mortgage. With a joint borrower sole proprietor mortgage the parent can be on the mortgage without being on the deeds. This means they can help increase the borrowing without being liable for the additional stamp duty in some cases. The parent is always required to obtain independent legal advice before proceeding.
Right to buy/acquire mortgages
If you live in a council/housing association property you could be eligible to buy it at a discount. You don’t always need a cash deposit to do this.
Mortgages for newly qualified professionals
Banks are becoming more accommodating for those who have recently qualified in a profession where there is a trajectory for steady income growth. Eg. Doctor, accountants, solicitors etc. In this situation they will lend a higher level of borrowing based on the expected future income. If you are a newly qualified professional we can help you find the best mortgage deals.
To find out the best options get in touch for a free no obligation chat about how we might be able to help you and discuss the options available
There are other services you need to think about when you buy a home. These are often overlooked but can be just as important as the mortgage:
Solicitors/conveyancers
Property survey/valuation
Buildings and contents insurance (buildings insurance is mandatory)
Personal insurance (life, critical illness, family benefit and income protection)
Note: Your home may be repossessed if you do not keep up repayments on your mortgage. As with all insurance policies, conditions and exclusions will apply.