Get on the property ladder with First-time buyer mortgages
Getting a first-time buyer mortgage can have its perks: the ability to secure a lower deposit mortgage – and sometimes lower interest rates – compared to conventional mortgage options being a big one.
At My Mortgage Finder, we provide specialist advice on mortgages for first-time buyers. Soon-to-be homeowners like yourself choose us because we do things a little differently. We don’t work for mortgage companies – we work for you.
Whether you’ve got your eyes set on a house already or are just about to start your journey, our mortgage-finding services are here to help.
Tips to successfully buying your first home
- Look beyond aesthetics: While it’s important to find a home that you find visually appealing, also consider practical aspects such as location, neighbourhood, and resale value.
- Consider getting a building survey: Before finalising the purchase, it’s essential to get a building survey to identify any potential issues or repairs that may need to be made. Sometimes a house can have hidden costly issues such as mould.
- Hire a reliable conveyancer: A conveyancer can help you navigate the home-buying process, especially as a first-time buyer.
- Read and understand all documents: Make sure you read and understand all documents related to the purchase of your home, including the purchase agreement and your mortgage documents.
FAQs: Your questions answered by our experts
Whether or not you will be accepted for a mortgage as a first-time homebuyer will depend on a few factors. Some of the main factors that lenders may take into consideration are:
- Your income and debt-to-income ratio.
- Your credit score.
- Your employment status.
- Your deposit amount.
An agreement in principle (AIP), also known as a decision in principle, is a written estimate from a mortgage lender that indicates how much they may be willing to lend you based on your financial situation.
- It shows you what you can afford and how much you can borrow.
- It shows estate agents and sellers that you’re serious and gives you a competitive edge.
- It speeds up the mortgage application process as an AIP includes an assessment of your financial situation and a credit check.
- It can help you negotiate for a better price on a property as a seller may be more willing to accept your offer if you already have secured a mortgage.
As a first-time buyer, the amount of deposit you need will depend on the price of the property you want to buy and the lender’s criteria. However, most mortgage lenders require a minimum deposit of 5% to 10% of the property’s value.
For example, if you’re looking to buy a property worth £200,000, you’ll typically need a deposit of at least £10,000 to £20,000.
The larger your deposit, the more attractive you are as a borrower to the lender. Having a larger deposit means that you’ll need to borrow less money and, therefore, you may be able to access better mortgage rates, which could result in lower monthly payments.
For more insight into securing your new home, visit our frequently asked questions where we demystify more mortgage jargon.
Making sense of closing costs
There are a lot of expenses that go into buying a house, many of which can catch you by surprise as a first-time homebuyer.
Closing costs are fees associated with the finalisation of the home purchase. They typically include but are not limited to:
- Fees for the lender
- Land registry
- Home survey
- Property valuation
- Survey costs
The closing costs can range from 3% to 5% of the property’s value and will also depend on whether you’re buying independently or through an agent.
Talk to one of our expert advisors today for more information.
Looking to secure a first-time buyer mortgage? Simplify your search with us
We hope that this information has made the process clearer for you. At My Mortgage Finder, we work for you and want to help you achieve your homeownership dreams without hassle. Finding the right home is tough as it is – you don’t need the added struggle of finding the right mortgage too!
We believe in complete transparency at My Mortgage Finder and will always be upfront every step of the way.
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