Mortgages For First Time Buyers
Stop Renting & Own Your Own Home
First time buyer mortgages may seem out of reach for many people - with high house prices leading many buyers to believe that they need ever larger incomes and bigger deposits before they buy. However, there are a number of factors right now which can help you get onto the property ladder sooner rather than later.
What options are there to help you become a homeowner?
As a first time buyer you can benefit hugely since November 2017 by not having to pay any stamp duty land tax on the first £300,000 of the value of the property you buy –
As most first time buyers will be looking at prices from £75,000 to £350,000, this effectively removes this costly element from your costs. It also means that you, as a first time buyer, have a buying advantage when compared to someone looking to buy the same property as you who has already had a mortgage, as it will cost those more to match any offer you make.
- Mortgage lenders need to lend to flourish. Many are actively pursuing those wanting to be homeowners for the first time –
Low base interest rates coupled with new buyer friendly mortgages (such as low start and discounted mortgages) are there to ensure your mortgage is affordable through those early years as you get used to the commitment involved. On top of this, lenders do not just rely on income multiples any more - to help you, income and expenditure calculations are used to see how much you can afford to repay each month based on realistic outgoings rather than a `one shoe fits all` calculation.
The government backed helped to buy equity loan can dramatically reduce the amount of deposit you need to still access some of the best rate purchase mortgages available –
The government equity loan is up to 40% of the home value in Greater London, 20% in the rest of England & Wales and 15% in Scotland. The equity loan scheme is only available on new builds. Speak to our mortgage advice team for more information on how this works.
The recent tax changes to the Buy to Let property market has reduced the income BTL investors can earn and increased the costs of landlords buying another property –
This should leave more starter type properties on the market for home owner aspirations to be realised by those looking to buy a home to live in.
To find out how these and other factors can help you buy a home and to get a free quote detailing how much you can borrow together withyour repayments please call our UK first mortgage team on free phone 0800 977 4701
or fill in our short, no credit check new mortgage form
Get advice before you commit to a first home mortgage.
Your first and most important step may be to seek specialist first home mortgage advice. Our mortgage advisers will know all about the UK first time buyer mortgage deals going at any one time that we can arrange for you from our panel. Factors such as which lenders will accept your credit file and income source, who are offering free valuations and legal work
and of course where the best rates are at your loan to value are all vital to get right. Helptomove.org have a team of qualified mortgage advisers on hand to sort your mortgage from initial enquiry to completion as you make that first step on to the property ladder.
Can parents, grandparents or family help with the deposit?
Many of our lenders are open to you using a gifted deposit to enable you to get enough deposit together
to buy your own home. You will need to provide details of where the deposit is coming from and proof the funds are there. Thereafter your mortgage can go ahead as normal. Some mortgage lenders also let parents or close family support your mortgage application by being a guarantor via you taking out a guarantor mortgage. Talk to our advisers about how this can facilitate your first mortgage.
In modern times with the cost of living increasing and wage rises not keeping pace, parents seem to be increasingly willing to support offspring wrestling with credit cards / loans, student debt, the high cost of living and high property prices. Some sources claim that perhaps one in seven first time buyers are given / lent money by their parents or grandparents. Some may do this to help loved ones now, when they need it. rather than waiting for the money to come via their estate.
Equity release to help family finances.
Parents who are over 55 with plenty of equity may be prepared to take out an equity release lifetime mortgage on their own home
to provide the finance. This is clearly a complex area so please speak to our team to find out more information without obligation.
First time buyer with bad credit max ltv.
As UK property prices have risen, first time home buyers have found it harder and harder to get onto the first rung of the property ladder. Nonetheless specialist lenders have emerged to support those seeking a mortgage with bad credit or a low credit score.
Borrowers with credit card or loan arrears, defaults or even county court judgements on their credit record are buying homes. Gone are the days when a first time buyer could simply multiply a combined gross annual salary by three and see what first time buyer mortgage that would secure them. However if you have a deposit of 10 to 15 % there is a decent chance you may get an affordable bad credit mortgage
Luckily a healthy housing market is vital to our economy and there are therefore plenty of opportunities to get you the keys to the property you want.
Finding out what your first mortgage will be and how much it will cost, is an important factor in seeing if you can afford your first property. Lenders selling first time buyer mortgages are trying to help you by being innovative. On the other hand, the 'credit crunch' has meant that first time buyers need to be less of a risk to the lenders so we will probably see more guarantor mortgages or mortgages where parentsare helping with the deposits to reduce the amount of mortgage required.
Newest first time mortgage lender products
Mortgage lenders who have risen to the challenge now offer a whole raft of innovative first time buyer mortgages. Potential Examples are: first time mortgages using your rent payments as a positive history, a mortgage which takes into account potential lodger income, mortgages for parents buying with or helping to financing a child, shared ownership mortgages and of course government schemes such as right to buy-which has been extended to cover housing association
as well as council tenants.
As you can see there is a vast array of first time buyer mortgages for those looking for a first home mortgage.