Is it possible to get a first time buyer mortgage?
For those who have not previously owned a property, and who want to get on to the housing ladder, here are some points to consider to keep you on track.
Key points for planning your first time home purchase
Try to aim for the following :
- Save for a deposit: Aim for at least 5-10% of the property’s value, but larger deposits can secure better mortgage rates.
- Check your credit score: improve it if necessary to increase your chances of mortgage approval.
- Get a mortgage in principle: this gives you an idea of how much you can borrow and shows sellers you’re serious.
- Research government schemes: Look into programmes like the First Homes Scheme or Shared Ownership if eligible.
- Budget carefully: consider all costs including stamp duty, solicitor fees, surveys, and ongoing maintenance. For leasehold property this will also include service fees and ground rent.
- Choose the right mortgage: compare different types (fixed, variable, tracker) and terms – we can help you with lining up the options.
Factor in additional costs: consider council tax, utilities, insurance, and potential renovations. - Location research: investigate the area, local amenities, transport links, and future development plans.
- Property surveys: get at least a basic survey done to identify any potential issues.
- Use professionals: engage a solicitor for conveyancing and consider using a mortgage broker like us to provide you with advice to suit your needs.
- Think long-term: consider your future needs and how long you plan to stay in the property.
- Don’t overstretch: ensure you can comfortably afford the mortgage payments, even if interest rates rise.
Buying a property, especially your first home, is a big decision, so don’t rush.
If you plan all these steps and give yourself enough time to line up your finances properly, you will be able to benefit from any prevailing discounts or special schemes for first time buyers – keep checking back for these as there are frequent changes.
We can help you to go through the process of gathering all your information together and making your mortgage application. It can be daunting for the first time, so get in touch with us today so we can make it easy for you!
Frequently Asked Questions
How much can I borrow as a first time borrower?
Just like anyone applying for a mortgage, lenders will assess your ability to pay based on income levels, financial history, age and risk. If you can save for a deposit you will be in a good position to get a competitive deal – a minimum of 5 – 10% is a good idea, and if you can achieve 20% or more you will have the widest choice. Saving lump sums (especially when living in areas of high value property) is not easy, and sometimes first time buyers will combine their efforts with friends or relatives in order to pool their finances – which is fine as long as all parties to the mortgage have the same goals and agreements in place to cover unforeseen circumstances.
Can I get a mortgage when I am still studying?
That depends on a number of factors, the main one being your income position and your level of outgoings. If you have sufficient income to be able to demonstrate you can afford mortgage repayments, the fact that you are a student will not prevent you from submitting an application.
When is the ideal time to buy your first property?
Buying a property and taking out a mortgage is a big decision. It is a commitment which can affect the rest of your life, so think carefully before going ahead. Most mortgages are designed to last for 25 – 30 years, although nowadays some terms are longer. However, you need to think of it as a long-term commitment, and also consider protection policies you may need to put in place in the event of illness or periods of reduced earnings / unemployment. Talk to us about all of these issues – we will advise you on the mortgage types that fit your circumstances, along with the insurance policies you will need to protect your interests.
Bransgroves Mortgage Brokers will provide you with the right advice at the right time, and are here to help you for years to come, as you move onwards and upwards in your life and need to plan future changes in your personal circumstances.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
