First Time Buyer Mortgage
There is so much to take in when you are buying your first home, that it can all seem quite overwhelming. The first step is to arrange a meeting with us, so that we put your mind at rest, and develop a good solid plan of action. With professional help and advice, you will already be making life much easier for yourself.
The basic things you will need are at least a 5% deposit which can come from savings, although parents can lend a hand too. It is good to be on the electoral roll so that lenders can find you when they do their credit score. Having a small amount of credit that you are repaying helps to let the lender see you are reliable when it comes to repaying a loan. All monthly payments should be made on time, so that you have a good credit record.
We would help you to determine how much you could borrow, and the cost. Listing your income and outgoings is the first step. Then looking at future expenditure, and the effect of potential interest rate rises. It is important to ensure the mortgage will be affordable over the longer term.
Following an initial assessment, we would then recommend the best lender in your circumstances, and also the best deal. Lenders all have their own criteria, so it is important to select only lenders with the potential to lend.
It is possible to consider a 100% first time buyer mortgage, but this is quite rare, and involves the lender taking a charge on your parent’s property as well as the one you are buying. 95% mortgages are normally at the top end of the scale. The quality of deal you can get is directly related to how much deposit you have. Therefore, the higher the deposit the lower the interest rate.