Your first step is ask us to secure a mortgage offer in principle on your behalf. Just complete our secure online mortgage offer in principle form.
A first time home buyer should seek the services of an experienced person who can advise them on the right course of action – an independent mortgage broker.
Your mortgage broker will be able to explain all stages of the mortgage application process and give you an idea of the costs involved, and your maximum affordable lending.
First Time Home Buyer – Deposits
The first thing to consider is deposit. All Lenders will want a cash deposit, be it savings, or a gift from family. The minimum deposit will normally be ten per cent of the purchase price.
If a family member is contributing towards your deposit they will be asked to confirm in writing that their contribution is a gift, not a loan, and that they have no claim on your proposed property.
Sometimes a builder will offer a gifted deposit to the applicant as part of a purchase deal. This is acceptable to some Lenders but the purchaser will also be asked to provide some cash as deposit.
First Time Home Buyer – Credit Score
A good credit record is key for a first time buyer and therefore you should make sure that any monthly payments on loans, credits card, and mobile phones are paid every month without fail. If you are unsure of the status of your credit file you can access a copy direct from providers such as Experian.
If you need help understanding your credit file, speak to your mortgage broker.
First Time Home Buyer – Debt
Any existing debt that you intend to keep in place alongside your new mortgage will reduce the total lending available to you. Credit card debts are considered particularly harshly by Lenders in this regard. For example a two thousand pound credit card balance may reduce your mortgage lending potential by up to five thousand pounds.
For many young graduates their student loan is their largest debt. However, the way that student loan repayments are calculated mean that they are normally not too much of a problem when arranging a mortgage.
First Time Home Buyer – Buying together
If you find you cannot afford the property you want on your sole income you may consider buying with a friend. This has it’s advantages, but if you choose to do this please make sure you have agreements in place at outset as to how long you will co- own, and what happens if one of you wants to move on or buy another property.
If buying with a friend make sure you are both adequately insured again sickness, and death, and you should both write a will.
First Time Home Buyer – Golden Rules
Our golden rules for first time home buyers are -
use an independent mortgage broker
get a good size deposit together
keep your credit record clean
consider resale potential when you buy
do not be over ambitious in your choice of property
The simplest and smoothest way to obtaining a mortgage is to use the services of an independent mortgage broker.
Our team are waiting to assist you – contact us now.
