FIRST TIME BUYER
Purchasing a property is an exciting time but can be an intimidating process for the first-time buyer.
Working with a specialist team, like ours, can help the process flow much more smoothly.
Our team will guide you through the process and keep you updated at every stage.
What is a First Time Buyer Mortgage?
A First-time buyer is a buyer that has never owned a residential property.
If you are applying with another applicant, you would not be classed as a first-time buyer if they own or have previously owned a property.
Broker Fees for our team to find you the right mortgage, this is typically from £895 to 1% of the loan amount.
Give us a call to discuss this further.
How do we get a First-Time Buyer Mortgage?
The process is the same as any other mortgage application.
We calculate how much you can afford based on your incomings and outgoings and how much deposit you have available.
The lender will then look at your credit history and review your documents. The lender will then review your case and decide whether they will lend you the requested money.
Other Considerations
As a first-time buyer your deposit is the biggest variable. Typically, this will be 10% of the property.
A higher deposit will attract a lower interest rate meaning reduced monthly payments but remember there are other costs to consider.
Solicitor fees will need to be considered. Including stamp duty if you exceed the current rates. The total legal bill will be between £500 and £1,800.
Moving costs to transport your personal belongings.
Broker Fees for our team to find you the right mortgage, this is typically from £895 to 1% of the loan amount.
Different Repayment Types
The initial interest rate on your mortgage will be fixed for an agreed period of time. This is usually between 2 and 15 years but can be as long as 40-years with some niche products. Typically, fixed rate mortgages will be between 2 to 5 years.
When this period ends, the mortgage will move over to the bank’s SVR (standard variable rate). The SVR tracks the banks of England base rate and is generally higher than you will have been paying. We aim to write to you before your fixed rates ends so we can secure you another appropriate deal.
This is the lender’s basic rate of interest. Lenders can choose to change the interest rate but it generally follows the Bank of England base rate plus a few extra percent.
Very similar to the SVR Mortgage, this follows changes in the Bank of England base rate plus a few extra percent.
Similar to a tracker mortgage, these mortgages will track the lenders SVR rate but with a discount. This type of mortgage will change as the SVR changes.
BROKER FEE DISCOSURE
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate it will be between £895 and 1% of the loan amount.
Standard Mortgage Risk Warning
Your home may be repossessed if you do not keep up repayments on your mortgage.
BTL Risk Warning
Your home may be repossessed if you do not keep up repayments on your mortgage.
Non-Regulated Risk Statements
The Financial Conduct Authority does not regulate some forms of Buy to Lets, Wills, Trusts and Overseas Mortgages.
The Financial Conduct Authority does not regulate commercial finance, secured or unsecured loans and will writing.
The Financial Conduct Authority does not regulate secured or commercial lending.