Expert Guidance Every Step of the Way
Your property may be repossessed if you do not keep up repayments on your mortgage.
Everything You Need to Know
First time buyer mortgages are intended for individuals purchasing their first property, whether a new build or an existing home. Some lenders may also treat applicants as first time buyers if they have not owned a property for three years or more, even if they previously held a mortgage and have since been renting or living with family.
This approach can make access to a mortgage more straightforward for those returning to the property market. The process usually begins with an initial consultation to assess affordability, income and credit history. Following this review, an Agreement in Principle can be arranged, enabling buyers to make offers with greater confidence and credibility.
FAQ'S
What are the typical requirements to apply for a mortgage as a First Time Buyer?
It’s pretty standard. Generally it’s three months’ payslips, bank statements and proof of deposit – but it’s all dependent on each lender and the amount of deposit that you have.
What documents do I need to get pre-approved for a mortgage as a First Time Buyer?
It’s the same documents – payslips to confirm the income for affordability purposes, and bank statements. That’s how we would get our income and expenditure form completed to see what the budget could be. We then look to get approval for a mortgage.
Streamlining Your Mortgage Application
When applying for a mortgage, it’s important to consider key factors like the maximum borrowing amount, which depends on income and financial commitments such as credit card debt or loans. For deposits, there are schemes offering 100% mortgages for renters with strong payment histories, though the general minimum deposit is 5%.
The size of the deposit impacts the interest rate, with larger deposits typically resulting in lower rates. First time buyers also have options like fixed or tracker rates. Fixed rates provide payment stability over a set term, while tracker rates fluctuate with the Bank of England’s base rate, making them riskier but potentially more flexible. Choosing the right rate depends on individual risk tolerance and market conditions.
Flexible Terms and Key Considerations
Government schemes like the First Home Scheme, Discount to Market Value, and Shared Ownership offer additional support. These programs are especially beneficial for those on lower incomes or with limited deposits. However, it’s important to avoid common mistakes, such as reckless spending or taking on new debts, as lenders carefully review bank statements and credit histories. For those with bad credit, specialist lenders may provide options, though higher deposits and interest rates may apply. Brokers can be invaluable in finding the right mortgage solution, even for buyers with challenging financial backgrounds.
Ultimately, the timing of your purchase should align with your current financial readiness rather than waiting for ideal market conditions. The housing market is constantly evolving, and waiting for a potential downturn can mean missing opportunities. If you’re ready and able to afford a property now, taking the step toward homeownership is a sound decision.
Vulnerable Customer
We understand that from time to time our clients may find themselves dealing with circumstances which could mean they are potentially vulnerable. For example, a change in health, caring for a family member or coping with the loss of a loved one. There are many different types of vulnerability, and what makes one person vulnerable might not affect someone else. When we are vulnerable, our need for financial advice may change. However, admitting vulnerability or seeking help can sometimes feel hard.
If this is something you would like to discuss with us, please ask for a copy of our support guide or download a copy here. This guide is designed to help explain vulnerability and the ways in which we might be able to support you. If you feel any of the circumstances in the brochure apply to you, please talk to us.
