MORTGAGES FOR FIRST TIME BUYERS
Mortgages for first time buyers are provided by many different lenders with lots of different schemes, perks and incentives on offer, all with different elements and costs throughout the whole process. But how do you know which one is going to be best for you and where do you start ?
Every single first time buyer has the same schemes and options open to them, which will we look at step by step, starting with a traditional 95% ltv mortgage based on a minimum of a 5% deposit, providing you with 100% property ownership. At Mortgage Chain we make mortgages for first time buyers simple by breaking the process down into easy step by step tasks.
THE NEXT STEPS
In the coming sections we are going to look at each option open to first time buyers, finishing off with the process from the moment you contact us, to the moment you pick up your keys. Exciting stuff!
When you first contact us, we go through a “Analysis Call” to determine if you are ready for a mortgage or as we like to say “Mortgage Ready”. This is usually a 10 – 15 minute call. Do you have the right documents and income levels for example. If so then great, we can move onto the next steps. If not, we will help you every step of the way until you are ready for a mortgage. Whatever your position, mortgages for first time buyers is our passion and we will guide you throughout.
This is what we like to call the “first time buyer experience” and is our tried and tested process in place to ensure every application ends with smile!
Over the coming pages we will be looking at the following options listed below, starting with the traditional purchase when you have your own deposit (5% minimum), leading onto other schemes for consideration.
This will include, in the following page order:
- Purchasing outright with a minimum 5% deposit (This page)
- Associated Services & Costs (All the associated costs and services required when buying your first home)
- Shared ownership (Where you own a % of the property and rent the remainder)
- Help to buy mortgages (Assistance from the government in your deposit)
- First Time Buyer Journey (Strategy call, fact find & required documents, borrowing potential, mortgage options & products, associated services and costs, recommendation & agreement in principle, application & solicitors, collecting your keys!)
95% Mortgages for First Time Buyers
The first mortgage option to consider are 95% ltv mortgages. This is where you would own the property outright and would require a minimum of a 5% deposit. This is reliant on affordability and part of our process will determine your eligibility.
My personal preference is to put down a 10% deposit if possible, as this will lead to a better rate and more chance of acceptance.
The benefits of a traditional purchase of your first home, means you will own your home outright, and will not need to be reliant on any government schemes that may maintain an interest in your property, until the debt/scheme is paid off.
The other key component for this to work is the your borrowing potential is in line with the properties that are available to you.
If affordability is an issue at this stage, then shared ownership mortgages and help to buy mortgage schemes are provided to bridge this gap. These schemes can be a fantastic stepping stone to becoming a fully fledged homeowner, which has to be the goal of every first time buyer.
If you are aiming at purchasing a property with 100% ownership, the next thoughts would be to look at the first time buyer associated mortgage costs and first time buyer experience. Once you have looked at and understand all the options and processes, it is time to make sure you are “First Time Buyer Ready” and look at getting your mortgage agreed in principle.
In order to do this, you need to book a free, no obligation Mortgage Analysis Call with one of our mortgage experts. Please book below.