First time buyer?
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First time buyer guide...
Buying your first home will be one of the biggest and most exciting things you do, however it can seem like a daunting task. What type of mortgage deal should you go for? How much can you borrow? Why not use our free online affordability calculator?
Legal fees can be a significant further cost that first time buyers need to factor in, it is important not to be completely price driven when choosing a conveyancer as they will be handling potentially the biggest transaction of your life, so you need to be confident in their ability. Speak to My Mortgage Finder to get quote from our carefully selected panel of conveyancers.
Ready to take the first steps into purchasing your first home? Why not contact our friendly advisers today?
Right to Buy scheme
The Right to Buy scheme helps eligible council and housing association tenants in England to buy their home with a discount of up to £110,500 (£82,800 outside London). The first thing you need to know is whether you are eligible for the Right to Buy.
Eligibility criteria apply to you and the property you live in. You now must be a tenant for three years before you can apply to buy your home. You don’t have to do it alone; you may be able to make a joint application for Right to Buy. If you’re eligible, you might be able to buy your home with:
Someone who shares your tenancy
Your spouse or civil partner
Up to 3 family members who’ve lived with you for the past 12 months. They don’t have to be on your tenancy agreement, but it must be their main home
If you are unable to afford the home you really want, there is a government funded scheme called Help to Buy: Shared Ownership. The scheme gives you the chance to buy a share of your home (between 25% and 75% of the home’s value) and pay rent on the remaining share. Later on, you could buy bigger shares when you can afford to.
You could buy a home through Help to Buy: Shared Ownership in England if:
Your household earns £80,000 a year or less outside London, or your household earns £90,000 a year or less in London.
You are a first-time buyer, even where you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move.
With Help to Buy: Shared Ownership you can buy a newly built home or an existing one through resale programmes from housing associations. You’ll need to take out a mortgage to pay for your share of the home’s purchase price, or fund this through your savings. Shared Ownership properties are always leasehold.
Only military personnel will be given priority over other groups through government funded shared ownership schemes. However, councils with their own shared ownership home-building programmes may have some priority groups, based on local housing needs. If a Help to Buy: Shared Ownership Scheme is of interest to you, contact one of our specialists today on 01904 373 028, or click here to submit an enquiry.
Our advisers are specialists in helping first time buyers onto the property ladder and we’re here to help you every step of the way when it comes to securing your mortgage. With record low interest rates the deals currently available are as competitive as ever, providing you with a great opportunity to buy your first home.
Lenders offer better interest rates when you put down larger deposits as you are seen as a safer borrower. It is important that you don’t just look at the interest rate on offer and, taking into account product fees, exit fees, whilst not forgetting the excellent cashbacks available from certain lenders. All of this will have an impact on the amount you will ultimately pay for your mortgage.
Lenders will look closely at your income as well as your monthly expenditure and commitments, when making their decision. You can influence this affordability calculation by doing everything possible to reduce your monthly outgoings as well as considering how many years you take the mortgage over. Whilst a longer term for your mortgage will reduce your monthly payments it may also mean that you pay more over the term of your mortgage.
The first steps we can help you with is getting ‘an agreement/decision in principal’. This is an important part of the home buying process, as it will put you in a stronger position when viewing properties and making an offer as it shows the estate agent and seller that you are serious and ready to proceed. The decision in principal will also make it clear to everyone involved what houses you can afford.
There are a number of other costs you need to consider, such as Stamp Duty Land Tax, click the link to use our stamp duty calculator, although you may be exempt from this.