First Time Buyers

Buying your first home is one of most exciting, yet daunting experiences. Here at The Mortgage Specialist we are here to hold our clients in hand and advise them all about mortgages, and the process of buying a first home and what costs are involved.

In recent years, it has been difficult for first time buyers to get their foot on the ladder. But help and advice is at hand.

There may be options available to you and these include:

  • Parental assistance with a deposit
  • Guarantor mortgage - e.g. have a relative act as a guarantor
  • Sharing a mortgage with friends or family
  • Government schemes for key workers - e.g. shared ownership

Benefits of being a First Time Buyer:

  • When looking to buy a property, you have nothing to sell, therefore, you are in a stronger position to bargain for a discount on the asking price of the property.
  • Having a mortgage maybe cheaper than rent that you are currently paying.
  • In the long term, you would have acquired an asset that would increased in value (e.g. over 25 years). 
  • Borrow up to 5 times your income.
  • The minimum deposit required is 5%.
  • You can make improvement to your property, therefore adding value to your home.

Mortgage Costs and Expenses

As a first-time buyer, it is always essential to bear in mind that a mortgage loan comes with a variety of other costs. These can include the following:

  • Stamp Duty
  • Legal fees
  • Land registry
  • Broker’s fee
  • Higher Lending Charge
  • Lender’s Arrangement Fee
  • Lender’s valuation fee
  • Survey fee
  • Removal firm

Depending upon your circumstances it is recommended that as a homeowner you protect yourself and your loved ones in the event of accident, sickness, critical illness, unemployment and death. Such insurances are a cost on top of your mortgage payments but they provide peace of mind and some mortgage lenders will insist that borrowers have certain types of insurance.

There will be a fee for arranging the mortgage. The precise amount will depend upon your circumstances, but we estimate it will be £395. 

For further assistance, call us on 0800 612 7688.