First Time Buyers – The most exciting time of your life……or the most stressful?
Taking your first step onto the property ladder may be something you have dreamt about for years. We are here to make sure that dream does not turn into a nightmare.
Buying a home consistently tops the list of the most stressful life event’s – its also likely to be the biggest purchase you ever make. House prices are continuing to rise at a time when wages have been falling, failing to keep up with inflation – and against this back drop you need to find a deposit and budget for the cost of buying your first home.
Getting a First Time Buyer Mortgage
There are countless mortgage options on the market, each with different features to suit a range of circumstances. Interest only or repayment? 2 Year Fixed or 5 Year Fixed? Tracker or a discounted mortgage? If your head is already swimming, don’t worry you have come to the right place to find the support and expertise you need.
We are independent mortgage expert’s with access to a vast range of lenders and products specifically designed for First Time Buyers. We offer friendly, professional advice.
All of the advisers at Mint FS are fully qualified and committed to the principals laid down by the Financial Conduct Authority (FCA) and their “Treating Customers Fairly” initiative (TCF).
First Time Buyer Mortgage’s
When you apply for a mortgage, the lender will assess your affordability by looking at your annual salary and any other income you receive, as well as all of your outgoings, including credit card and loan debts, household bills, childcare, travel and general living costs.
The lender will also check your credit history to see whether you’re a reliable borrower and will use this and its affordability assessment to decide how much you can borrow.
Mortgage providers will usually have a maximum loan-to-value – LTV – they’re prepared to offer you. This is the maximum mortgage loan you can take out as a percentage of the property value.
So if, for example, the property value was £250,000 and you were offered a mortgage of £225,000, your LTV would be 90% and you’d need a deposit of £25,000, which is 10%.
When to apply for a mortgage
Before you start viewing properties, it’s a good idea to get a mortgage agreement in principle from a broker. This will give you an idea of how much you can borrow and it will prove to estate agents you are serious about buying.
Some lenders will carry out a hard credit check for this – which then appears on your credit file – so keep this in mind when applying for an agreement in principle. And if the mortgage provider does carry out a hard check, it’s best not to get more than one or two agreements.
Another great reason to talk to a whole of market broker – they can search the market and find the very best lender for your circumstances, ensuring you only ever need one credit check.
Some lenders will run a soft search – and this won’t affect your credit score – so it’s a good idea to check with each lender you contact before applying.
Your agreement in principle will last between 30 and 90 days. Keep in mind that this is only an estimate and isn’t a guaranteed mortgage offer – however your broker should be able to provide a mortgage certificate which is useful when looking to secure an offer on your new home.
The purchase price of your new home
Having an idea of how much you can borrow will help you work out how much you can afford to pay for your new home, and should give you a better idea of your price range when it comes to viewing houses.
The actual mortgage loan you take out will then depend on how much you pay for the property, and whether you want to use any of your mortgage loan for making home improvements.
You should always make sure you’d be able to afford the monthly repayments before deciding whether to make an offer.
We make what is complex, straightforward.
Our team of mortgage experts are ready to help, get in contact today on 0330 1355914 to speak to an adviser or request a callback.