Mortgage Advice for First Time Buyers

Mortgage Advice for First Time Buyers

Mortgage Chain

First Time Buyer Mortgages

Alex Kerr: Mortgage Broker for First Time Buyers

Mortgage Chain specialise in Mortgage Advice for First Time Buyer Mortgages and have successfully helped many first time buyers onto the property ladder, for the first time.

Today we look at my 5 top tips: Mortgage Advice For First Time Buyers


Tip 1 – Do not offer on a property, before seeking mortgage advice !

So tip number one, and the most common mistake I see first time buyers make, is, do not offer on a property before you have received mortgage advice, because if you’re going in blind you might be buying a property that you can’t afford. This therefore leads to huge diappointment, especially if you become emotionally attached to a property, and a waste of time for all parties involved!

Tip 2 – Freehold Vs Leasehold. Understand what it means.

Tip number two, is around freehold and leasehold properties. When you’re buying a house ninety nine times out the one hundred, it will be a freehold property, where you own both the land and building. However when you’re buying a flat and an apartment or something that is leasehold, you don’t own the land and the apartment, you are just leasing it from the freeholder.

When you buy a leasehold apartment make sure there’s a good lease, at least 80 years and make sure you understand what leasehold means, (This means there will be a freeholder who stipulates the rules around the property) and make sure you understand fully. I have seen many examples for the leaseholder, where they are required to payout the freeholder, thousands of pounds. Make sure that doesn’t happen to you. Also as a leasehold holder you may have to pay for the maintenance of the building. This is also known as a “section 20 notice”, where everyone within the apartment will contribute towards the maintenance costs. Sometimes this can be high, so try and find out from the agent or the freeholder, the last time the property was maintained and issued with a section 20 notice, as if it’s been a little while you may have a “section 20 notice” around the corner. Just do your homework on leasehold properties !

Tip 3 – Mortgage Document Check

Make sure to get your documents in order; make sure your passport or driving licences have not expired, as you will need one of these during an application, or you will not be accepted. If they are out of date, get them sent off now. Make sure that they’ve got the correct data on, such as your name spelt right, your current address is correct. Do a thorough check across all of your documents to make sure everything’s in the right place and matches across all documents. That includes your payslips and bank statements. Lenders will not tolerate miss spelt or abbreviated names, expired documents, previous addresses.

Tip 4 – Bank Statements

Tip number 4, is in regards to bank statements. Whether you’re employed or you’ve got your own business, limited company or self-employed, the rule applies across the board. Some lenders will ask for 3 months bank statements, some may ask for 6 to 12-months, especially if you are a business owner. If your statements are just a complete mess of transactions, your money going in, direct debits, business expenses, it’s not going to be viewed favorably. Try and have a separate account for direct debits, make sure it’s all neat and tidy, and another account for your salary. I would say this is the best way moving forwards and if you’ve got an account with missed direct debit payments, lenders are not going to view this in a favorable light, so make sure your bank statements are looking good and that they’re organised.

Tip 5 – Check all of your credit files – checkmyfile

You must check your credit files upfront. When I say “credit files”, I mean Experian, Equifax, and Transunion. it is vital to know what’s going on with all of the credit files, as mortgage lenders could use any of these three credit file agencies or a combination when assessing your credit score. It is a big mistake to rely on data from one of these three providers, as you need to see the data on all three because the information could reflect differences between the three files. I fully recommend getting your credit report from checkmyfile credit report, who provides all three credit file reports on one report.


Thank you for checking out today’s blog for first time buyers, please be sure to check out next weeks version, talking about the new help to buy scheme for 2021! 


Today’s Question: If you buying your first time I would love to know your experiences please do let me know in the comments below ? LMK!


Alex Kerr
Mortgage Broker for First Time Buyers

Free Credit File Check. Check your credit score from the outset! Use checkmyfile as they provide reports of all three credit file agencies the mortgage lenders use to credit score you, on one file (Experian, Equifax and Transunion). checkmyfile offer a 30-day free trial which is then £14.99 a month thereafter and can be canceled at any time.

Check my free credit score now: CLICK HERE For a free credit score check: email your checkmyfile credit file to: [email protected]

DISCLAIMER: This video and description contains affiliate links via the above checkmyfile link, which means that if you click on one of the product links and purchase the product, I’ll receive a small commission. This helps support the blog and allows us to continue to make more like this. Thank you for the support!

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Speak soon

Alex Kerr
Mortgage Broker for First Time Buyers


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