Mortgage for a First Time Buyer
Being a first-time buyer can be daunting. You want the cheapest rates, and, thankfully, there are some fantastic first time buyer mortgage rates available.
Buying a home can be stressful, and we understand and fully appreciate all the challenges buyers face. First-time buyers like you must ensure that your budget is sufficient to cover the cost of mortgages and related expenses, including utility bills, council tax, and service charges if you are buying a leasehold property.
Since 1999, we have helped make the entire process painless and stress-free for thousands of first-time buyers, so we pride ourselves on repeat business. Our decades of experience will guide you smoothly through the whole process. We know that you may feel uncertain and need more guidance, and we’re more than willing to provide you with a bit more handholding if you need it. This is why our clients return to us for help and expert guidance for their subsequent purchases and re-mortgages.
We can advise you on all particular types of mortgages, including Guarantor Mortgages, Joint Borrower, Sole Proprietor Mortgages or Springboard Mortgages. These mortgage types are an excellent way for your parents or grandparents to help you climb the property ladder.
We can expertly guide you via video call, telephone, or email. Complete the form or call us, as we would love to help.
If you would prefer to give some basic information securely, we will happily send you some suitable illustrations for your consideration – just click here
Don’t forget to look at our Stamp Duty Calculator, as first-time buyers may get the SDLT cheaper rate
First Time Buyer
What Makes Us Unique
- We will never charge a broker fee
- Whole of market advice
- Access to exclusive rates often not available on the high street
- Immediate appointments available
- Use us online via Teams or over the phone
- At times which will suit you
- Hassle-free and stress-free
Am I Classed as a “First-time Buyer”?
You’re a ‘First-Time Buyer’ if you have never owned a home and are looking to buy one. In recent years, it has become increasingly difficult for first-time buyers to secure a mortgage and get onto the housing ladder. However, there are several measures that you can take to facilitate the process and help it go smoothly.
Do I Need an Agreement in Principle (AIP) Before I Start My Property Search?
An essential step in getting approved for a mortgage loan is obtaining an Agreement in Principle (AIP). An AIP is pre-approval from a lender before making a full application. Having an AIP in place shows that you are a serious buyer, thus significantly increasing your chances of success. An AIP allows you to determine how much money you can realistically borrow and that you have passed a credit scoring process to ensure your property search is not in vain.
Should I Get an AIP From More Than One Source?
Be careful. When we obtain an AIP for a client, we want to ensure that it does not harm their credit record. Many lenders leave a ‘soft’ footprint on a credit record. This means that if another AIP is required with a different lender, it won’t show and therefore does not harm the credit record. If you have multiple AIPs that leave a ‘hard’ footprint on your credit record, it can damage your line of credit!
How Much Can I Borrow?
Being a First-Time Buyer may not have an evident direct impact on the loan amount you can potentially receive. Lenders will consider your borrowing requirements based on financial circumstances and credit score. Those with higher incomes, fewer outgoings and better credit scores will typically receive more borrowing because of their greater likelihood to pay the loan back based on affordability. An example is a first-time buyer client with children is likely to get a lesser mortgage than a client without children – one of many examples. Many lenders calculate mortgage borrowing differently, and the best solution is speaking to a fee-free independent mortgage broker like us.
What Is My Credit Score and How Does This Work?
Your credit score, not to be confused with your credit history, is a factor when you apply for a loan. It influences the lender to offer you a loan and how much they can offer. Generally speaking, a better credit score means they will lend you more.
The simplest way to explain your credit score is that it paints a picture of how well you have managed your historic payment history to a lender. A good example is that you have had past credit, such as a credit card, and paid it off on time each month.
What Are Ways To Improve My Credit Score?
- Understand your credit file. One recommended provider is checkmyfile.com. Get your free report, and don’t forget to cancel if you no longer require their service. This report will show you everything about your financial history.
- Ensure all your accounts are up-to-date and have the correct information against each record.
- If you have limited credit history on this report, consider using a special credit builder credit card to boost your credit score – it can help build a good foundation for future borrowing.
- Establish a good payment history with timely payments. This will improve your credit score over time.
- Reduce your overall debt burden. Pay off any outstanding loans or debts as quickly as possible.
- Consider using an instalment loan to diversify your mix of accounts. Instalment loans typically stay on your report longer than other forms of borrowing, so they can improve your long-term financial health if managed correctly.
- Monitor and maintain the use of available revolving credit lines like credit cards and lines of credit responsibly—avoid maxing out these types of accounts to maintain a good balance between debt and available credit over time.We suggest staying within 50% of your agreed credit line as it shows a lender that you can control your finances.
- If the above doesn’t make sense to you, do step one and speak to us – we know these reports inside out and can advise you accordingly.
Where Can You Get Help?
Please speak to an independent expert such as us. The Government need to drive homeownership; it starts with first-time buyers such as you! A good page to visit for affordable home ownership schemes is: www.gov.uk/affordable-home-ownership-schemes
However, government schemes are not for everyone, and there may be better solutions for you, such as Guarantor, joint borrower/sole proprietor and springboard mortgages which are mortgage schemes designed by lenders to help first-time buyers secure home ownership.
How Much Deposit Do You Need?
The best rates come with a higher deposit, typically 25% or 40%, but this is a tough deposit for a First-Time buyer. Realistically a minimum deposit of 10% is advisable; however, several lenders have 5% mortgages available. An initial conversation with us will help you understand what is available.
What Fees Come with Buying a Home?
- Stamp Duty: A tax payable to the Government when purchasing a home in the UK. It is based on the purchase price of the property and what type of buyer you are. We have a funky little stamp duty calculator here www.conranfinancial.co.uk/how-much-is-stamp-duty/ which tells you the exact cost.
- Arrangement Fees: Mortgage lenders typically charge an arrangement fee for setting up your mortgage loan. This fee can vary depending on who you choose as your lender, and there may be certain circumstances in which no arrangement fee is charged. An expert independent broker will work out all the available rates coupled with all fees and explain which options are financially better for you so you can make an informed choice.
- Valuation Fees: You will need to have your chosen property valued independently by a qualified surveyor before taking out a mortgage, which will usually incur a fee. Some mortgages have fee-free options.
- Legal Fees: You may need to pay several legal fees during the mortgage process, such as conveyancing and local authority searches. We will happily recommend quality local conveyancers if you don’t have one.
- Broker Fees: Most independent mortgage brokers charge a fee whilst taking an additional “procuration fee” from the chosen lender. We do not charge a broker fee because we believe it is unethical to be paid twice. As independent brokers, it is our duty to ensure you get the most fitting mortgage to suit your particular situation – that is our guarantee.
Do I need a Solicitor?
Yes, it is highly recommended that you ensure you have a good solicitor. You have many choices, but we recommend you speak to an excellent local solicitor who will look after your best interests and protect you. Grant Saw Solicitors in Greenwich have great information on their website – https://grantsaw.com/services-for-you/residential-property/buying-your-home
What Conran Mortgages Can Do for First-Time Buyers?
We are consummate professionals and understand what it is like to be a first-time buyer; after all, we were one once!
Our job is to independently search for the best mortgage products the market has to offer you and to support you through the entire transaction from start to finish. Some first-time buyers need more support than others, but we will cater to your individual needs.
As independent brokers, we are not fussed about whether your mortgage is with HSBC, NatWest, Santander, Halifax or the hundreds of other lenders we use; it is to ensure the mortgage is the best one for you… it is really that simple!