Specialist first time buyer mortgage advice
Our mortgage broking experts have experience of the first time buyer mortgage market. We discuss all the available mortgage product options for first time buyers, including fixed rate mortgages, variable rate mortgages, tracker mortgages, discount rate mortgages and capped rate mortgages. We review the first time buyer mortgage market on your behalf and find the best mortgage product with the lowest mortgage rate suitable for your financial circumstances.
Our mortgage broking team work with first time buyers online, or we take appointments at our office in North London, Hertfordshire and Essex.
How the mortgage process works for first time buyers?
Our mortgage brokers review your salary or earnings and other income you receive. We also check your spending for example: other outstanding loans, credit card spending, household bills. From this information our mortgage broking team recommends how much you can borrow and we contact the mortgage lender to assess your affordability. The mortgage lender will check your credit history to make sure they are satisfied that you can re-pay your loan and then they provide a maximum loan-to-value amount. This is the maximum mortgage loan that they offer you as a percentage of the value of the property.
For example if you wanted to purchase a house with a value of £200,000 and you were offered a mortgage of £180,000, your loan to value would be 90% and you would require a £20,000 deposit which is 10% of the purchase price.
Saving a deposit for your first home
If you are a first time buyer it can be difficult to save for a house deposit, but even if you only have a small deposit you may still be able to qualify for a mortgage. Our mortgage brokers review your mortgage deposit and recommend a suitable first time buyer mortgage. The larger your deposit the better mortgage rate you will be offered.
At your first meeting our mortgage brokers will review your costs. Remember you may need to save for surveys, property searches, solicitor’s costs, stamp duty and removal costs.
Schemes available to help first time buyers
- Shared ownership schemes – This scheme allows you to purchase a share of a property through a housing association. You can purchase additional shares in your home and you pay rent for the part that is still owned by the housing association.
- Help to buy equity scheme – You can borrow up to 20% of the value of a new-build home without paying interest for five years. In London the interest free amount is 40%.
- Parental assistance – Some lenders allow parents of first time buyers to put down a deposit. Parents put down a percentage of the value of your property which is kept in a savings account by the lender. This enables you to be offered mortgage products with lower interest rates.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.