Mortgages for First Time Buyers
As a first time buyer looking for a mortgage, the most important part of the process is getting good quality advice.
We know how daunting things can be for a first time buyers so we've put together some information that might help and we can also provide access to qualified and regulated mortgage advisers with experience of the first time buyer market.
Mortgages for first time buyers have become more scarce in recent years due to changes in the economy and the amount of risk lenders are prepared to take.
First time buyers are a slightly higher risk than someone with several years of mortgage history because the cost of running a house and paying a mortgage can be shock to people who are not used to dealing with the expense.
Ask about government backed shared ownership schemes and other incentives for first time buyers.
Take your first step on the property ladder with confidence.
With access to a huge range of mortgages, including fixed, discounted and capped rates, repayment and interest-only loans, qualified advisers can help you buy your very first home.
Costs Involved in Buying a Property
Before taking the first step it is important to look at the road ahead. Buying a property involves more costs than just the price of the property itself.
Here is a basic list of some of the costs involved in buying a property:
1) Mortgage Broker Fee - charged by the adviser and often worth paying for a smooth transaction and help along the way. (These can range from £300 - £1000 sometimes more)
2) Mortgage Lenders Product Fee - Mortgage lenders charge admin fees for processing an application. (These can range from £0 - £1500 or more)
3) Stamp Duty - Depending on the value of the property this can be as much as 4% of the purchase price
4) Valuation Fee - This varies according to the value of the property (costs between £200 - £800 or more for specialist properties)
5) Legal Fees - Some mortgage companies provide legal services or you can use a solicitor of your choosing (fees can be as much as £1500)
Costs Involved in Running Home
It's important for fist time buyers to estimate the total cost involved in running and maintaining a home before making a financial commitment.
As part of the condition of a mortgage for people buying a house the lender will require buildings insurance to be in place to protect the property against damage.
It is also always a good idea to consider life insurance to protect the mortgage debt if someone dies as well as critical illness cover and insurance to pay the mortgage in the event of long term sickness.
Regular bills can also include council tax, water rates, electricity, TV license, phone, food etc.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
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