Getting a first time buyer mortgage can seem daunting, let us make the process smooth for you. With over 30 years experience getting mortgages for first time buyers, we know the process. With access to thousands of different mortgage deals across hundreds of different banks and building societies, we have access to the best interest rates across the industry. A lot of first time buyers ask, well where do I begin? Let’s get this laid out for you.
"Ashley helped me with my first mortgage, he guided me through the first time buyer process and searched and got me the best available mortgage with a low interest rate."
"Fantastic experience. We were recommended to go with Ashley from a friend, and he guided us as first-time buyers throughout the process step by step."
First off, an informal discussion of your finances to see what you can borrow. We’d look at your income versus your liabilities such as credit cards, loans or dependents such as children. Initially we’d weigh all of that up and look at what you could borrow. Once we’ve come up with a figure you’d need to see if there’s a property out there for you in that price range. We would also make sure that buying this property would fit in with your monthly budget. With your deposit this goes on top of your mortgage amount to make up your purchasing price. So, for example, you have a £190k budget and a £10k deposit for a £200k house you want to buy. This would come under a 95% loan to value which is the most lenders are willing to lend.
When it comes to looking for the best mortgages for first time buyers, the market is a little different. Lenders don’t offer the same products to first time buyers as they would to existing clients. This is because having not owned a property before, you are seen as higher risk. With our advice you can make sure you are getting the best deals available to first time buyers. This is because we compare first time buyer mortgages across all the mortgage lenders. With our whole of market access this means we aren’t tied to one specific bank. Some brokers will have a panel of four or five, some might be tied to even one or two. This means that they can only advise on mortgages from that specific lender. We don’t h ave those restrictions. This means we can get the best mortgages for first time buyers. This be whether you are looking to buy your first home for residential use or are looking at becoming a first time landlord with a buy to let mortgage. Another aspect of first time buying can be in the commercial mortgage sector. This is a very different world to residential mortgages and will need a different set of advice in itself. It is an area we have experience in and can help you get a property for your business. Another specialist sector that we advise on is equity release. Although this isn’t for first time buyers, it is a specialist area that we advise on and can help with if you have need for advice. You could potentially be looking at a self build for your first time buyer mortgage. This is also something we can speak about with you and assess if it’s right for you.
Complete separate from the first time buyer mortgage is the first time landlord proposition. With a buy to let mortgage you have a lot of different criteria to meet and lenders look at these in a different way to residential mortgages. Being a first time landlord is the same as a first time buyer it’s just the buy to let version. So, what do lenders look at when you’re a first time landlord? Well, generally they want to see that you own your own home. This shows the lender that you have a security in place already and have experience with mortgages. Generally they will also want your first one to be a simple straightforward buy to let rather than a HMO (house of multiple occupation) as these require more expertise to manage. Becoming a landlord for the first time can be a strenuous process, similar to becoming a first time buyer. This is why it’s key to seek advice in these areas whether that be first time buyer mortgage advice or one to be a first time landlord.
So now you’ve found your ideal property, you have minimally a 5% deposit to put down and want to make an offer, what next? What we would then do is get a full fact find completed by yourself to give us the information to get an agreement in principle from a lender. An agreement in principle is the lender saying that they are happy to give you a mortgage based off the figures you have presented and should you be able to give them proper proof that these figures are correct using the correct documentation then they will lend you that money. Before an agreement in principle can be obtained we would get you a full illustration on the mortgage deal that we would be getting you and also our terms which include our fee breakdown. If this is all acceptable you sign and we go ahead and get you that agreement in principle. Once you have the agreement in principle done you go to the estate agent and make a formal offer on a property.
Great news, you’ve had an offer accepted on your first home and are well on your way to completing your first time buyer mortgage. Now we move forward with the mortgage application. Supporting documents such as pay slips, bank statements, ID, proof of deposit are gathered. We then submit these to the lender along with all the written details and figures that the lender has asked for in the mortgage application. What will happen now is the lender will instruct a valuation to be done on the property. This will make sure the property follows their lending criteria and also is a suitable security for the loan. Lenders will also look over the supporting documents such as pay slips and ID to make sure they are valid and appropriate. Once all these steps are completed and the lender is satisfied they will issue a formal mortgage offer.
Once the lender has produced their mortgage offer, our job is technically finished. Although we don’t stop our duty of care at this stage. The next step is for the legal process to take place, carried out by a qualified solicitor. We have a great panel of solicitors that we can recommend if you don’t already have one appointed. The solicitor will then take you through the conveyancing process. This is usually goes as fast as you can get your paperwork to them. They’ll do all the legal searches on your behalf and get contracts drawn up to be exchanged. The legal process can usually take 3-6 weeks depending on how fast you act.
Another point to factor in is buildings and contents insurance. Lenders will want buildings insurance done as a minimum, we offer advice on this and often will give you a quotation during the process. You can also consider life insurance to protect the mortgage should you die. This is quite a daunting subject but necessary if you have a family that wouldn’t be able to pay the mortgage in your absence. We can also advise on this to get you a great insurance package to protect you fully. They will go through checks and get the contracts drawn up for your purchase and exchange. Generally this can take a few weeks to complete and once all is done you will exchange contracts at the end. Then you have the keys to your first home, congratulations!
You’ve moved into your home and are paying the mortgage off monthly. What happens next? If you took out a fixed rate mortgage this will expire in 2, 3, 5 or even 10 years time. At this point we can look at a remortgage for you. This is key to making sure you have the best rate at all times. We will often contact you six months prior to your fixed rate expiring to advise going forward.
Alternatively you might want to move home at this stage. This is when we can help you with our home mover mortgage advice. With plenty of experience helping families and clients move home and assisting with the mortgage side, we are happy to discuss and act on your behalf to obtain a mortgage for a new home.
The best way to discuss your needs is by having an informal conversation. We don’t charge anything for these. Once we’ve had an informal chat we can discuss and decide if it’s possible to move forward for you. If not, we can look at ways you can improve your situation to get a mortgage in the future. If you can, we are happy to advise. Get in touch today to discuss your needs for a first time buyer mortgage. Please do be advised as well that we also cover the full remit of financial advice including pensions, investments & insurance.
Equity Release plans are not right for everyone. And it is important that you fully consider your options and receive independent financial advice before making a decision. It is also important that, if you do decide to use an equity release product, you choose one that meets your needs.
Remember that taking an equity release plan is generally a long term option. However, there are flexible plans available that may fit your varying needs and some will allow you to repay in the future without penalties.
All investments involve a degree of risk of some kind. This section describes some of the risks which could be relevant to the services we provide you. We may provide further risk information during the course of our services to you, as appropriate.
Our services relate to certain investments whose prices are dependant on fluctuations in the financial markets outside our control. Investments and the income from them may go down as well as up and you may get back less than the amount you invested. Past performance is not a guide to future performance.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Some Buy to Let Mortgages are not regulated by the FCA.
True Advice Financial Services is a trading style of TA and SE Hollom Ltd which is an Appointed Representative of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority : Number 460421.
Registered Office : 1st Floor Princess Caroline House, 1 High Street, Southend on Sea, Essex, SS1 1JE.