Are you hoping to buy your first home but want to get a bit of information to help you get started?
We’ve answered some of the questions we get asked most by first time buyers to help you feel more confident about getting on the property ladder.
Firstly, what’s the definition of a first time buyer?
A first time buyer is typically a person who has never owned a home before. However, some lenders may extend their definition further – for example; if you haven’t had a mortgage for at least two years, or if there’s two applicants but only one of them is a first time buyer.
What’s the first thing I need to do to be able to buy a property?
Your first port of call should be to speak with a mortgage adviser to find out what kind of mortgage you can afford and to get a decision in principle. You’ll also need to have saved some money for a deposit.
How much deposit do I need?
The minimum amount of deposit that lenders will accept is 5%. If you have a bigger deposit available (for example, 15%) this will open up the number of lenders that will be willing to consider you for a mortgage because your loan to value (known as LTV) is lower. Having a lower LTV can also mean that the interest rates you’ll be offered are lower too.
How much can I borrow?
The amount you can borrow will be determined by a number of things, which include – how much you earn, current financial commitments (e.g. personal loan, credit card or car finance) and your credit score.
Our mortgage calculators can provide you with a basic indication of what you may be able to borrow, bit you’ll need to speak with a mortgage adviser and undergo a credit search to confirm an exact amount.
Should I go to my bank or a mortgage broker?
As One of the UK’s leading mortgage brokers, we’re able to search 1000s of products from over 90 lenders to find the right mortgage for your circumstances. Although your bank seems like a natural choice because you have accounts with them already, they can only offer you their own products which are a more limited choice.
Do first time buyers get any special help or support?
There are a few schemes that could make buying your first home more affordable, even if they’re not specifically for first time buyers. These include Right to Buy and Shared Ownership.
Some lenders may also have special deals for first time buyers that offer additional support such as a free valuation or legal fees.
Expert advice for first time buyers in Lincoln
If you’re looking to buy your first home, let’s see how we can help. Our team of experienced mortgage advisers in Lincoln are on hand to take through every step of the process until you have the keys in your hand.
To book a free, no obligation first appointment with an adviser, please call us on 0800 9155409 or send us an e-mail.
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