ARE YOU A FIRST TIME BUYER LOOKING FOR A MORTGAGE ?
If you are looking for home mortgage loans for first time buyers, then you have found the right place.
Buying your home can be a daunting experience, at Homebuyers Advice Centre you can expect a personal, friendly and professional service to help you on your way. One of our mortgage professionals will be assigned to you and will guide you through each step of the way ensuring you understand every part of the process to owning your first home. Some of the benefits we can offer first time buyers :
Simple & impartial mortgage advice
Exclusive schemes for first time buyers
Easy to understand help and information
Take advantage of a Cashback scheme
Exclusive schemes not available on the High Street
Once approved by the mortgage lender we can provide mortgage guarantee certificates showing that you are in a good position to buy
In some cases we can even include your stamp duty and legal fees with the mortgage, allowing you more cash to set up home.
Let us help you find the right first time buyers mortgage home loan in the UK and get you on to the first rung of the property ladder.
Over the past few years, the property market has been moving very fast and has led to significant increases in property prices and lenders looking for lower risk investments. This has made it very difficult for many people to afford to buy a home. However, it is still possible for first time buyers to get onto the property ladder and there are actually some advantages to being a first time buyer:
interest rates are at their lowest for more than 30 years
first time buyers are more appealing to sellers because they are not in a chain (that is they are not part of a long list of people all dependent on each sale in a chain going through on time)
Work out what you can afford
The most important step is working out how much you can afford - use the Homebuyers Mortgage Calculator to get an idea of the property value that suits your budget.
What you can borrow often depends on what you are prepared to offer in terms of a deposit. Although it was possible to obtain 100% mortgages, these are now becoming a thing of the past. Typically buyers need approximately 10-15% of the purchase price as a deposit to get a mortgage in the current climate. There are however special first time buyer mortgages available from Homebuyers and there a some lenders who are still offering 100% mortgages. Below are some of the options available to you as a first time buyer.
Mortgage
Shared Ownership Mortgages
New Builds
Co-Buying
Mortgage
The minimum deposit depends on who you arrange your mortgage with. It's usually between 10% and 15% of the property's value.
100% LTV. A few lenders will lend 100% of the property value and interest rates and initial fees can be a little lower.
95% LTV. Most lenders will lend up to 95% of the property value but there will either be a higher lending charge or interest rates will be a little higher.
90% LTV. If you can get a 10% deposit then you should be able to access most of the lower cost mortgage deals any lender provides.
In the last month or so many lenders have changed their view on high loan to value loans. Many have withdrawn their 100% mortgages and the ones that are left are being more careful when they lend.
Shared Ownership Mortgages
Shared Ownership Mortgage schemes are used for part buy, part rent schemes commonly known as shared ownership.
These type of mortgage scheme are popular with FTB's because they only need to find a fraction of the deposit (100% mortgages are available) When you buy a shared ownership property, you only buy a percentage stake in the property, usually 25 to 50 per cent – from a housing association. Although this can be affordable, as you only own a percentage of the property you will miss out on some of the equity growth if the housing market rises.
You can, however, ‘staircase‘ which means buying another portion of the property later on.
Many of these shared ownership schemes, which often offer properties at a discount, are open to all comers through housing associations. Shared ownership mortgage schemes vary form lender to lender with some lending up to 100% loan to value on the purchased share.
New Builds
Most house builders in the UK offer generous incentives to first time buyers so it is definitely worth checking what new builds are available in your area.
Co-Buying
Buying with a partner, sibling or friends can be a more economical way of getting on the ladder as there is someone else to share the financial burden with. The finer details of who is paying what and what percentage each party owns should be discussed prior to making any commitments.
Whoever you decide to invest with, make sure you have the right agreement set up. Avoid disputes by taking simple measures, such as agreeing a roster for housework and how the household bills will be split upfront. A local family property law specialist can help you draw up a co-habitation or joint ownership agreement.
Decision in Principle
Often when looking for a property an estate agent will ask you if you have a first time buyer mortgage in place before they will even show you around properties. This is so they know that you can afford the properties you are looking at. This is sometimes called a decision in principle and it is something that can be obtained from a first time buyer specialist mortgage broker at Homebuyers Advice Centre. Homebuyers will offer you a certificate to present to an estate agent so that you can prove you have the means to get a mortgage.
Call free on 0800 037 8310 for a decision within 24 hours or click here to find out more
There may be a fee for mortgage advice, typically 1% of the loan amount. The precise amount will depend upon your circumstances. Think carefully before securing other debts against your home.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Homebuyers Advice Centre Ltd is authorised and regulated by the Financial Services Authority, for advising on and arranging regulated mortgage contracts, pure protection products and accident, sickness, unemployment, buildings and contents insurances.
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