THE MORTGAGE ADVICE for

First-time Buyers

Let’s set the scene. You’re looking to buy your first home and it’s not quite as straightforward as you initially hoped. You need to know how much you can borrow, how large the deposit needs to be, and how to go about getting an agreement in place. You may even be wondering what a mortgage is and how it all works, which is totally natural for the first-time buyer.

Researching the property market for your first home is very exciting, yet it can also be confusing, daunting and overwhelming. That’s where our team comes in, as we specialise in helping first-time buyers to understand how it all works whilst answering your questions and removing all the stress. Mortgage Advice Firm will handle the paperwork and admin, guide you through the process of taking out a mortgage and ensure total peace of mind every step of the way.

Thanks to our support and reassurance, you’ll be picking out curtains and deciding where to place your houseplants before you know it. If you’re based in Hull or East Yorkshire, get in touch with our mortgage advisors today for personalised advice about buying your first home.
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Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage.

Mortgage Advice Firm usually charge a fee for mortgage advice. The amount of the fee will depend upon your needs and circumstances. This will be discussed and agreed with you at the earliest opportunity. Typically, our fee is £399.00 and is payable on Mortgage Offer.

Can I get a mortgage?

That’s an excellent question and the answer is entirely down to your personal circumstances and goals. To clarify, a mortgage is essentially a loan that’s taken out in order to buy a property. As a result, lenders will assess your financial status, which includes your level of income and whether or not you’ve missed any payments in the past, such as your credit card or electricity bills. Many other things are often taken into account, such as employment status, affordability, age, credit score, property type and a variety of other factors.

The lenders gather this information through credit scoring systems, which are so complex and sophisticated that it’s impossible to work out exactly what score they’ll give. Credit scoring systems don’t stand still either, as they change regularly in line with how much a lender has available to invest at that time and the wider economy in general. Sometimes lenders raise the bar and make it harder to get a mortgage, then a few months later it will become easier– the property market really is in flux all of the time.

The good news is that each lender is different to the rest, so whist one may decline your offer, another may accept it. Some lenders are actually very flexible and don’t require a credit score, giving you a greater chance of buying your dream home. Whether you’re confident you can get a mortgage or are struggling to decide if now’s the right time, we suggest you get in touch for a friendly and helpful chat. Our role is to guide you through an ever-changing market and explain your options in no-nonsense language.

What is a credit profile?

Your credit profile is a score that’s generated by analysing all of your credit activities. Everything from credit cards and personal loans to missed payments, store cards and mobile bills influence how well you score, which can result in a good or poor credit profile. If your credit score is low, it could make it difficult for you to attain a mortgage approval. Meanwhile, a good credit score makes it easier to get a mortgage on your ideal property.

As part of a mortgage application, the lender will assess your credit profile and decide whether or not to approve your application based on your historic credit activities. If you’d prefer to check your own credit profile beforehand, websites such as ClearScore and Experian offer free credit score reports. ‘Please be aware that by clicking onto the above link you are leaving the www.mortgageadvicefirm.co.uk website. Please note that neither Mortgage Advice Firm Ltd nor PRIMIS Mortgage Network are responsible for the accuracy of the information contained within the linked site accessible from this page.’

For expert advice on how to fully understand your credit profile and also work toward improving your credit score, get in touch with Mortgage Advice Firm today.

How much can I borrow?

The amount you can borrow is based on your personal circumstances, such as your income level and financial commitments. The general rule of thumb is that you can borrow four and a half times your salary, although it can be up to five times depending on your credit profile. When we say salary, this could also include state benefits, overtime, shift allowance, bonuses, holiday pay, dividends, investments, overseas income and retirement income – it all depends on what the individual lender classifies as income.

All of your financial commitments are taken into account too, such as any personal loans, car finances, buy now pay later agreements, credit cards and even things like child maintenance and nursery fees. Then there’s your age, level of deposit, dependent children or adults, and whether it’s a sole or joint application.

There’s a lot to consider and we understand it can be stressful, so get in touch today for friendly, practical and fully tailored advice.

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Have I got a big enough deposit?

One of the most common issues for first-time buyers is the lack of a suitable deposit. The absolute minimum deposit is 5% of the total being borrowed but it’s often 10% or higher, with some deposits reaching 15% or even 25%. Everything from the individual lender to the current state of the UK economy can affect how large a deposit you’ll have to pay, so be prepared to save a sizeable amount.

Having a larger deposit available can increase your chance of your mortgage application being approved, plus you could benefit from a lower rate of interest. Some specialist lenders allow you to borrow a 5% deposit as an unsecured loan, provided you’re able to make the regular payments.

This means that even if you don’t have a deposit but believe your income can accommodate a loan and a mortgage simultaneously, you can still get in touch with Mortgage Advice Firm.

What is an agreement in principle?

An agreement in principle is a pre-approval from a lender. Agreement in principle isn’t an offer of a mortgage but a good indication that you will attain one, subject to a full mortgage application and satisfactory documentation.

For more advice on maximising your chances of securing your first mortgage, get in touch with our expert advisors today.