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Simply a first time buyer is usually someone that has never owned a property before, in the UK or abroad. However some lenders have a slightly different view on this if you haven’t owned a property recently. If you haven’t owned a property in the last year or 3 years, they will class you as a first time buyer.
Generally you will need proof of income (Payslips, or accounts if you’re self employed), Bank Statements, and Proof of ID, you will usually need some form of proof of deposit or equity, this can vary from lender to lender though. Depending on the application you may require more documents. If your lender or broker asks you for more documents don’t be worried or surprised, it’s quite normal.
This is the biggest one before you start looking at properties. Lots of websites have a mortgage calculator on them. However these are quite inaccurate. If you can spare us ten minutes of your time over the phone we will be able to give you a no obligation idea of how much you can borrow. You’ll also need to consider legal fees, stamp duty, moving costs and mortgage broker fees if there are any.
The next step would be to get a mortgage in principle which is a statement from a lender on how much money you can borrow in principle. An estate agent or developer is likely to take you more seriously if you have one before you go see a property.
Getting the right solicitor can mean everything in a house purchase, if you don’t have one, ask your mortgage broker, they may know some good ones.
So you found a home, got a mortgage broker, got a mortgage in principle, got a solicitor and put in your mortgage application, what’s next? Well, once the lender has checked the value of the property, and have checked you, they will issue a mortgage offer with how much they are willing to lend.
You’re gonna have assets now, so it’s a perfect time to think about a Will. Usually your mortgage broker or solicitor can recommend someone if they don’t do it themselves!
The government help to buy scheme is an equity loan of up to 20% (40% in London) of the property value. This allows you to get a smaller mortgage, and usually a better rate. Usually you put down a 5% deposit, you get the 20% equity loan from the government and then a 75% mortgage. Therefore you often get a better interest rate and lower monthly mortgage payments.
The shared ownership scheme has been around for decades. Essentially you buy part of the property and rent the rest. This means you usually need a smaller deposit, it is therefore perfect for first time buyers to get on to the property ladder. If you have a low income or low deposit you can buy as little as 25% of the property. You therefore need a smaller mortgage and deposit.
This scheme isn’t out yet. However when it does come out we know it is a minimum 30% discount on eligible New Build properties. It will be available to First Time Buyers and Key Workers. If you’re interested in this scheme get in touch and we’ll let you know when we know more.
The Right to Buy scheme allows you to buy your council property off the Local Authority. Usually at a discount. But you can’t sell or rent out the property for a set amount of time. If you’re interested in this scheme your local authority should be able to tell you more and let you know if you’re eligible.
The most common are fixed, discount and tracker rate mortgages, but there are other types of mortgage.
Fixed rate mortgages are just that, fixed. Your interest rates are fixed for a set amount of time. This is quite popular as it allows you to plan your future outgoings. This type of mortgage means the monthly payment is therefore the same every month.
Discount rate mortgages are usually a discount on the lenders variable rate. This means that as the lender puts their variable rate up or down, your monthly payments go up or down. You can often get a good rate on a discount product, but they lack stability.
This type of mortgage usually tracks the Bank of England base rate. This means as that goes up or down your monthly payments also go up or down.
No, we don’t. There is a good reason for that. You may see other websites where you have to enter your contact details in order to use their mortgage calculator. This is because a mortgage calculator can’t really give you an accurate answer. It’s much easier if you would like to know how much you can borrow, to do this over the phone. If you want to know how much you can borrow give us a call and we’ll tell you for free. It only takes around 10 minutes so it won’t take up much of your time.