If you’re a first-time buyer wondering what you need to buy a house or flat, you’ve come to the right place.
A person is generally classified as a first-time-buyer if they’re purchasing their only or main residence and have never owned a freeholdor have a leasehold interest in a residential property in the UK or abroad.
Before looking at properties, you need to save for a deposit. Generally, youneed to try to save at least 5% to 20% of the cost of the home you would like. For example, if you want to buy a home costing £150,000, you’ll need to save at least £7,500 (5%). Saving more than 5% will give you access to a wider range of cheaper mortgages available on the market.
Apart from your monthly mortgage payments, there are others costs when buying a home.
These include:
First-time-buyerswill pay no Stamp Duty on the first £300,000 for properties worth up to £500,000.
Stamp Duty Calculator www.stampdutycalculator.org.uk
As a first-time home buyer, the most important thing to bear in mind is whether you can really afford to take this step. It’s wise to put together a budget before you start looking for a property. There are now strict checks when you apply for a mortgage.
Lenders will check you can afford the mortgage and also ‘stress test’ your ability to make your payments if interest rates were to rise or if your circumstances changed, such as a planned retirement date or if you started afamily.
As part of the mortgage application process you’ll need to show the lender evidence of any outgoings you have and prove your income.
Several government-backed schemes aim to give home buyers a helping hand on to the property ladder.
If you can use one of these schemes, lenders will still want to ensure you can afford to pay your mortgage.
There are many different mortgage deals to pick from, so choosing the right one for you can be tricky. It can depend on several things, but don’t worry your in the best hands, we will find you the best mortgage deal suitable to your needs and circumstances.
If you want to buy a house, it’s likely you’ll buy the freehold, meaning you own the property and land it sits on. If you’re buying a flat, you’ll be buying leasehold, or buying into a share of the freehold
Which ever mortgage we apply for, the lender will want to know you can continue to make your repayments. Even if interest rates rise, or as a result of any planned events affecting your financial circumstances. You’ll need to provide evidence of your income, and provide information of your outgoings, including:
To prove your income, you will have to produce payslips and bank statements.
If you’re self-employed, you will be asked for tax returns and business accounts prepared by an accountant going back two tax years.
We take care of the full mortgage application on your behalf, liaising with the lender we use our experience, knowledge and expertise to ensure the full process goes as smoothly as possible.
