Advice for first time buyers

If you are looking at buying a home for the first time then you are likely to need a mortgage. Here are some things you will need to know before seeking advice.

Will I be able to get a mortgage?

This is probably the most obvious question but one of the trickiest to answer. Every person I deal with has different financial circumstances. Due to this, I cannot really provide a generic answer.

Where possible, I always try to find a mortgage product for a client. The lenders will have to consider many different points though before they approve your application. Things they usually consider are:

  • Employment status (full or part time, employed or self employed etc.)
  • Affordability (how much do you earn and can you afford the repayments?)
  • Your age
  • Your credit score
  • Any debts you may have such as finance or credit cards
  • Property type
  • Plus much more

Every lender is different and their requirements may change. This means that if you do not suit the criteria of one lender, you may suit another. Be aware though, if their requirements change then the interest rates may change too. You may end up paying more (or less) than if you went with a different mortgage deal. This is why a qualified mortgage broker in Nottingham can be useful!

How much can a first time buyer borrow?

Again, another tricky question unless we sit down and chat. Most of the time, how much you can borrow depends on your income and any other financial commitments. Commitments that may be taken into account are car finance, gym membership, any dependants and any loans or credit card debt.

The general rule of thumb is that you could borrow between 4 and 4.5 times your annual salary. This is not always the case though so don’t take this as solid fact. Lenders can also take other forms of income into consideration. This can include benefits, overtime, shift allowance, bonuses, dividends and more. Sound confusing? Talk to me with a free initial consultation and I’ll look at your specific situation. This should give you more of an accurate answer.

What sort of deposit is needed?

It is often the case that first time buyers struggle when saving up for a sizeable deposit. Most, but not all, would like to look at mortgage products with as small a deposit as possible. There are lenders who will lend with a zero deposit (although other criteria applies). The most common minimum amount is 5 per cent. Be aware though, interest rates may be higher for these type of deals. Wherever possible, you are likely to get a much better deal if you can put down 10 to 15 per cent as a deposit.

Remember, I am a whole of market mortgage broker. This means I can scout through almost every available mortgage deal to find the best one that suits your needs. By finding the right product, I hope to be able to potentially save you hundreds of pounds on your first mortgage.

What will my mortgage repayments be?

Again, every situation is different. As a general rule, these repayments will be determined by the amount you borrow, the interest rate, the term of the mortgage and any additional fees. You may be able to extend the term of your mortgage which will lower the monthly payments further. Chat to me to find out more.

What if I have bad credit?

Sometimes it can be difficult to get a mortgage when you have bad credit. It is not impossible though. This is why a mortgage broker, such as myself, is generally useful. I cannot guarantee to get you a mortgage but I can certainly use my extensive knowledge to work out which products may be best for your situation.

Can you get a first time buyer buy to let mortgage?

Most lenders will want you to already own a property if you want to take out a buy to let mortgage. Some lenders will allow you to have a buy to let as your first property but criteria may be strict. Again, talk to myself as a qualified mortgage advisor and I will look at your situation to determine what would be best for you. First time buyer mortgage information can be found here.

Talk to a mortgage broker for first time buyer mortgage advice

Now you know the basics, talk to me today to ask any questions. I’ll be able to compare the whole of the mortgage market and find a product which should best suit your needs.

Feel free to use the form below, or get in touch via my contact page.