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.

Your Guide to Buying your first home.

Below is where some common questions can be added to the site with useful answers. I need you to think of three of these for each service you provide. These Q&A'S are designed for SEO to attract visitors to your site looking for information related to the service you are providing here. The information here is also proof that you are an expert and can help people, so the stronger the written content, the more likely you are to convince someone to take the next step and contact you with an inquiry.

common QUESTIONS

Can I Get a Mortgage?

Good question. One that can’t really be answered in a paragraph of an article. If you’ve not missed any payments on anything and your income is high enough then you should qualify with most lenders, but each application is judged on individual merit.
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It can come down to employment status, affordability, age, credit score, property type, and a whole host of different things.Credit scoring systems these days are so complex, it’s impossible to work out exactly what score they’ll give.

The good news is, that as every lender is different, and if you’ve been declined once it doesn’t mean you can’t get a mortgage with another lender. Some lenders are surprisingly flexible, some don’t even credit score.

They are all constantly changing their scoring systems, at times raising the bar making it harder to qualify, other times lowering it making it easier – usually depending on how much money they have to lend at the time. If you’re struggling, I’d suggest you get in touch and an advisor can see if there’s anything that can be done based on the latest market criteria.

How much can I borrow?

This really depends on the income and commitments you’ll have when you’ve got the new mortgage. General rule of thumb is about 4x your salary, but can be up to 5x depending on credit profile.‘Salary’ is a fluid concept in and of itself however, as every lender takes different incomes into account.

Some take state benefits, overtime, shift allowance, bonuses, holiday pay, dividends, investment income, retirement income, overseas income… and others don’t.

Some take 3x joint salaries, some can stretch to 5x in the right circumstances. Again, your best bet is to make an enquiry so an advisor can calculate your borrowing limits. For more info have a read of our mortgage advice pages.

How much deposit will I need?

A common issue for first time buyers is a lack of a decent sized deposit. At the moment, the minimum is 5% across the board, but these are scarce and have very strict criteria to meet if you are to obtain one, not to mention coming with a much higher rate than 10 or 15% deposit deals.

With the introduction of the new Help to Buy 2 scheme however, buying any property with just 5% deposit is now much easier.Specialist lenders can often help you if you have a minimal amount to put down as deposit, and with the right advice you can save hundreds on your mortgage by getting the rate right.Using a whole of market, independent mortgage broker, can help ensure you get the best deal available.

NOTE: 100% mortgages don’t really exist anymore, however through some specialist lenders it is possible to borrow the 5% deposit required on an unsecured loan, provided it is affordable to do so.If you are looking to buy and have no deposit, but think you have the income to sustain a loan and a mortgage, please get in touch.