Key decisions for your first home ... If you are buying you first home, you need to be aware of all your options, and ensure that you deal with someone who is qualified to advise and help you choose the most suitable mortgage scheme possible.
There are two types of First Time Buyers ....Those with a deposit, who have no doubt saved very hard for a long time to cover the cost of the deposit, stamp duty, survey, solicitors fees and many other expenses associated with the house buying process. The size of the deposit may dictate the amount of schemes available to choose from and the interest rates charged.
Those without a deposit, either because they have been renting and therefore unable to save, or like many first time buyers just spent their money having a good time!. Many people fall into this category, they know that they can afford the monthly cost of a mortgage but are simply unable to save for a deposit.
With lenders no longer offering 100% mortgages first time buyers have to provide a 5% or 10% deposit.
Here are a few exceptions:
A Guarantor Mortgage allows you to borrow 100% as long as the Guarantor is a parent, grandparent or in some cases a blood relative. As long as they meet the lenders criteria and are willing to accept joint liability for the mortgage repayments this can be an option worth considering. There are a limited number of lenders available.
A 5% vendors or builders gifted deposit mortgage is another option still worth considering. This is where the vendor (seller) or builder reduces the purchase price by 5%. The lender will take the 5% as a deposit. This must be based on the purchase price or the valuation whichever is the lower.
A Shared Ownership Mortgage allows you to borrow 100% of your equity share of the mortgage and pay an agreed rent on the other share.
Whichever of the above categories you fall into you need to be aware that every lender has their own lending rules. These rules help them decide who they will lend to, how much they will lend and what proof of income they require.
All you need to do is phone us on 0845 123 5194 or click on Contact Us so that you can receive professional, unbiased advice and quotations. We can arrange everything for you, and our services are free of charge.
Think carefully before securing other debts against your home. Securing previously unsecured debts on your home may increase the repayment term and the amount repaid. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
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First Time Buyer 
