Buying your first home is an exciting milestone, but it can also feel a little overwhelming. From working out how much you can borrow to understanding deposits, mortgage products and the buying process itself, there is a lot to think about.
As an independent mortgage adviser, I can help guide you through the process and answer any questions you may have along the way. Whether you’re just starting to save for a deposit or you’re already viewing properties, I’ll help you find a mortgage that’s suitable for your circumstances and support you from your initial enquiry through to getting the keys to your new home.
What is a First Time Buyer?
In the context of applying for a UK mortgage, if you or your partner have never owned a property in the UK or abroad, you would be classed as a first-time buyer for the purposes of a mortgage and for stamp duty rates. Some lenders may have mortgage products targeted at first time buyers which may offer more flexibility and access to higher borrowing than normal to help first time buyers get on the property ladder.
How Much Deposit do I Need?
A 10% deposit will normally provide access to a wider range of lenders and mortgage products, although options may be available with a smaller deposit depending on your circumstances. There are an increasing number of options for mortgage products with a 5% deposit or even no deposit options with a limited number of lenders. Your personal and financial circumstances would need to meet the lender’s criteria and as your mortgage advisor, I would help you determine which option is the right fit for your circumstances and the amount of deposit you have.
How Much Can I Borrow?
A general guideline is that lenders will let you borrow 4 to 4.5 times your annual income, either a joint income if you are applying as a couple, or sole income if you are applying by yourself. However, a lot of factors can impact how much you can borrow such as childcare costs, unsecured loans, credit cards, car finance, student loans and regular household expenditure when assessing affordability. Having loans and credit cards doesn’t mean you can’t get a mortgage but it may mean a lender will lower your borrowing amount to account for those other commitments. Some lenders also have special products if you are a high earner or a first-time buyer that can be geared toward lending a higher income multiple than normal.
What Does the Mortgage Process Look Like?
The first step is usually to establish how much you can borrow and obtain an Agreement in Principle. An Agreement in Principle is helpful so that you can know the boundaries of what you would be able to borrow and it is useful for estate agents and sellers to know you are a serious buyer. Once you’ve found a property and had an offer accepted, I would discuss available products for you to find the best fit product for your circumstances. Then I submit a full mortgage application for you. The lender will assess the application, carry out a valuation and, if successful, issue a mortgage offer. Your solicitor will then complete the legal work before contracts are exchanged and the purchase is completed.
As your mortgage adviser, I can guide you through each stage from establishing how much you could borrow, Agreement in Principle, potential mortgage products, full application to successful mortgage offer. I liaise with the lender throughout and keep the process as easy as possible for you.
What Else Do I Need to Know?
The house-buying process can be very confusing for first-time buyers. There are a lot of steps, a lot of jargon and so many things to keep in mind! Have a look at my First Time Buyer’s Guides which are freely accessible on my Tools & Guides page. The whole process is outlined there in more detail plus information on documentation required, potential additional costs that you need to factor in and things to think about when your move is complete.
Ready to Take the Next Step?
Whether you’re just starting to think about buying your first home or you’ve already found a property, I’m here to help.
I can guide you through the mortgage process, explain your options in plain English, and help you find a mortgage that’s right for you.
If you’d like to discuss your plans or have any questions, feel free to get in touch for an initial conversation. Book a Quick Chat and we can get you started or feel free to message me on Whatsapp.