First Time Buyer

Advice and Guidance for First-Time Buyers

A First-Time Buyer refers to someone who is planning to purchase their first home as their primary residence. In recent years, it has been challenging for First-Time Buyers to enter the property market. However, acquiring the right knowledge and preparing in advance of your mortgage application can greatly increase your chances of obtaining a competitive mortgage offer.

Is an Agreement in Principle necessary?

While not mandatory, obtaining an Agreement in Principle, also known as a decision in principle, can be advantageous for First-Time Buyers. An Agreement in Principle is a conditional mortgage offer from a lender before submitting your complete application.

Having an Agreement in Principle prior to making a mortgage offer can enhance the likelihood that your offer will be seriously considered by the seller. First-Time Buyers are in a strong position since they do not need to sell a property before purchasing. By providing confirmation through an Agreement in Principle, your offer as a First-Time Buyer can stand out from others.

An additional benefit of obtaining an Agreement in Principle before finding a home and making an offer is the peace of mind that your offer can progress smoothly and avoid the disappointment of being unable to purchase the property you’ve fallen in love with.

How much can I borrow as a First-Time Buyer?

Being a First-Time Buyer does not dictate how much you can borrow from lenders. Your loan amount is determined based on your financial circumstances and credit score, similar to any other applicant.

Different lenders may offer varying mortgage amounts as they have their own criteria. To gain an idea of how much you might be eligible to borrow in advance, there are free mortgage calculators available online. However, it’s important to note that the accuracy of these calculators relies on the information provided. Therefore, we strongly recommend consulting with a Mortgage Broker, such as ourselves, to ensure accurate outcomes and avoid any potential disappointment. A Mortgage Broker can assist you in assessing affordability with multiple lenders efficiently, saving you time and effort, while also considering specific lending criteria requirements.

Talk to an expert Adviser, now!

Our highly experienced Advisers are ready to help you with either buying or remortgaging a home, protecting your property and lifestyle along with saving you time and effort, ensuring you have a competitive deal right for you.

How can improving my credit score help?

In addition to your income, your credit score plays a significant role in determining the approval of your mortgage application. Before approaching any lenders for a mortgage, it is essential to be aware of your credit rating and take steps to improve it, if necessary. Here are some tips for enhancing your credit score:

  1. Verify that your current address is correctly listed on all accounts in your name.
  2. Aim to utilize no more than 50% of the available credit on any existing credit agreements.
  3. Ensure you are registered on the electoral roll at the appropriate address.
  4. Make timely and full payments on any credit agreements whenever possible.
  5. If you have a low score due to a lack of credit history, consider obtaining a credit builder credit card to demonstrate responsible borrowing behavior.

Remember, improving your credit score takes time, so it’s crucial to start early and maintain healthy financial habits.

Please note that the information provided is general advice and may vary depending on individual circumstances. It is always recommended to seek personalized advice from a qualified professional.

How much deposit do I need?

When it comes to the deposit required, some lenders may ask for a higher deposit from First-Time Buyers, but it is not a requirement for all. For a standard residential mortgage application, you will typically need a deposit ranging from 10% to 20% of the property’s value. However, it can be challenging to raise a large deposit if you have a low expendable income. Fortunately, there are government schemes available that aim to assist First-Time Buyers by providing more flexible requirements.

What help is available for First-Time Buyers?

One helpful option for those with a low income is the shared ownership scheme. This allows you to purchase a share of the property instead of the entire property. Your mortgage will only cover the portion you buy, making both the deposit and monthly payments more affordable compared to buying the entire property. However, you will be required to pay rent on the remaining share of the property in addition to your mortgage.

Please note that the information provided is general and specific schemes and options may vary depending on your location and circumstances. It is advisable to research and consult with relevant professionals for personalized advice.

What fees are involved with buying a home?

When buying a home, there are several fees to consider:

  1. Arrangement Fees: Most mortgage lenders charge an administrative fee for arranging the mortgage. The amount varies between lenders, and some specialist lenders may offer no arrangement fees for specific professions.
  2. Valuation Fees: You will need to have your chosen property independently valued, and the fees for this valuation will vary depending on the lender you choose.
  3. Legal Fees: The mortgage application process requires the appointment of a solicitor who will handle conveyancing and local authority searches. Legal fees are typically paid directly to the solicitor.
  4. Stamp Duty: Under normal circumstances, Stamp Duty is applicable to the purchase of all properties and is based on the property value, among other factors. First-Time Buyers currently benefit from an exemption on Stamp Duty for purchases up to £300,000.

How can Multibroker help First-Time Buyers?

Multibroker can provide valuable assistance to First-Time Buyers in various ways. Buying your first home can be intimidating, and their qualified and experienced Mortgage Brokers can offer guidance and reassurance throughout the process of making significant decisions.

As Mortgage Brokers with a wide market view, they have access to mortgage deals that may not be available on the high street. This means they can help you find the most suitable mortgage deals and focus your efforts on lenders most likely to accept your application.

Please note that the information provided about Multibroker is for illustrative purposes only, and it is advisable to conduct your own research and evaluate their services based on your specific needs and requirements.

Talk to an expert Adviser, now!

Our highly experienced Advisers are ready to help you with either buying or remortgaging a home, protecting your property and lifestyle along with saving you time and effort, ensuring you have a competitive deal right for you.

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