First Time Buyers

First-Time Buyers do not have the same level of financial history or security as those currently paying mortgages. Consequently, it may be difficult for a First-Time Buyer to obtain money from a lender, especially if they don’t have a sufficient income or a strong credit score.  

Also as a First-Time Buyer they may be  less experienced in property buying and may need extra guidance from a Mortgage Broker. In addition, as a First-Time Buyer, they may not be fully aware of the mortgage types: fixed; variable; split; or the fees that will be incurred.

How much can a First-Time Buyer borrow?

The amount varies  depending on your income, debt levels, and general financial circumstances. Typically, a lender will allow you to borrow up to four times your salary, but this can be five times depending on your credit profile. 

It’s advisable to contact a mortgage lender and to shop around. Some lenders will take account of state benefits and investments as income, while some will not. With the right advice, it’s possible to get a higher loan based on your situation. 

What is an Agreement in Principle?

An Agreement in Principle is an estimate from a mortgage lender about the loan, you will be eligible for, based on your financial circumstances. It gives you a rough idea of what you can borrow and allows you to contact estate agents with serious inquiries. 

An Agreement in Principle gives you a realistic insight into how much you have available and allows you to browse properties in that price range; it also offers reassurance to those with poor credit files. 

How do I know what my credit score is – how do I improve it?

The easiest way to find out your credit score is to access your file through Experian or Credit Karma. These websites give you a detailed picture of the file that lenders will see when considering your application.

A Mortgage Broker will be able to negotiate with lenders on your behalf based on your position. However, you can also improve your score by paying off debt and using a credit card wisely. 

What help is available for First-Time Buyers

First-Time Buyers are important for the economy and for lenders to secure long-term loans with clients. As a result, there is a lot of assistance available to help and encourage First-Time Buyers to acquire a home. 

Mortgage Brokers are able to see competitive deals from lenders,, lenders will be willing to negotiate on the loan agreement, and Government schemes are available to help you raise a deposit. If you’re a First-Time Buyer, it pays to take advantage of these benefits. 

What fees are involved when buying a house?

 It’s easy to assume that all you need is a deposit and a loan to secure a mortgage, but this is not an accurate picture. The reality is, there is more money involved in buying a home than you may realise at first. 

These costs include stamp duty, survey fees, lawyer’s fees, and broker fees. You will also have to pay for home insurance and possibly life insurance. Talk to your Broker about this, and remember to factor everything in. 

How do you go about arranging a mortgage?

The first thing you should do is decide you are serious about buying a home, then begin saving for a deposit. You can use an online mortgage calculator to get an idea of how much you can afford and how much you will need to save. 

When you’re ready, contact a Mortgage Broker. You can find one through your bank or run a comparison search online. Your Broker will give you all the assistance and information you will require throughout the process. 

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