Mortgages for First Time Buyer

The amount of deposit required for a first-time buyer mortgage can vary depending on the lender and the type of mortgage product. However, most first-time buyer mortgages require a deposit of at least 5% of the property’s purchase price. The larger the deposit you can provide, the better the mortgage deal you can secure.

There are several types of first-time buyer mortgages available, including fixed-rate mortgages, variable-rate mortgages, and government-backed schemes such as Help to Buy. Each type of mortgage has its own benefits and drawbacks, and it’s essential to consider your personal circumstances when choosing the right option for you.

A mortgage in principle, also known as a decision in principle or an agreement in principle, is a written estimate from a mortgage lender that states how much money they would be willing to lend you if you were to apply for a mortgage. It is not a formal mortgage offer but rather an indication of the maximum amount you can borrow based on your income, credit score, and other financial details.

There are several government-backed schemes designed to help first-time buyers, such as Help to Buy. These schemes can provide financial assistance with your deposit or reduce your mortgage repayments.

Lenders generally want to see at least six months of positive credit history before approving a loan or credit application. This allows them to assess your financial habits and determine whether you are a responsible borrower. However, some lenders may require longer periods of positive credit history, such as 12 months or more, depending on their specific lending criteria. It’s important to maintain a good credit history by paying your bills on time, keeping your credit utilisation low, and avoiding applying for multiple loans or credit products within a short period of time.

You don’t need a solicitor just yet! When you are buying a property, it’s recommended that you first find a mortgage lender and secure a mortgage in principle before hiring a solicitor.

Having a mortgage, in principle, will give you a clear idea of how much money you can borrow and what kind of properties you can realistically afford. Once you have your mortgage offer, you can then move forward with finding a solicitor or conveyancer to handle the legal aspects of the purchase.

However, it’s important to note that you can start researching solicitors or conveyancers early in the process to ensure you find one that suits your needs and budget. You can seek recommendations from friends or family members who have recently purchased a property or search for qualified professionals online. It’s important to choose a solicitor or conveyancer who is experienced in property law and can handle the legal aspects of your purchase efficiently.