First Time Buyer Mortgages
Warrington Mortgage Centre are a team of local and experienced Independent Mortgage Advisors on hand to give you genuine and personalised advice for first-time buyers.
Use our first time buyers form to see how we can help you to mortgage your first home with us!
What are mortgages?
A mortgage is a loan that you take out, to help you buy your house. The loan is usually paid off after several years whilst you are living in the property.
Lenders have plenty of options available to First Time Buyers, so preparation is always key in helping you understand the most suitable lenders for first time buyers, affordability towards your new mortgages and understanding what your costs will be in your new home.
Your homeownership journey is an exciting chapter in your life, as a first-time buyer, we want to share that excitement with you and make sure you completely understand the process start to finish.
We’ve put together a helpful First Time Buyer Guide, that you can download here.
Speak to our First Time Buyer Mortgages Advisors
If you’re a First Time Buyer, then the chances are, mortgages seem like a foreign language that can be difficult to understand! There are so many lenders, products, interest rates and moving parts to the whole process.
Here in our First Time Buyers guide, we help break this down, so you can feel confident in how you can move forward into your first home.
No matter who you ask, they will all likely tell you that they have had mortgages for different lengths of time.
A typical mortgage term is usually around 25 years, however, lenders can offer you a mortgage much longer than this depending on your age and personal circumstances.
If you choose a longer the mortgage term, the lower your monthly repayment will be, as it will take longer to pay off, however, you’ll end up paying more interest to the lender over a longer period of time.
If you choose a shorter the mortgage term, the higher the monthly repayments will be, but you ill clear your mortgage quicker and pay less interest to the lender.
When choosing how long you want your mortgage to be, think carefully of you monthly budget, because you’ll be committed to pay this, every single month!
This depends on your personal circumstances…
You’ll need to demonstrate to lenders that you’ll be able to afford the monthly payments, and they’ll also want to see how you’ve managed debts in the past. To do this, they’ll get a copy of your credit report, so it’s worth requesting a copy yourself before applying so you can see how good your score is. We can help you understand what the lenders looking for and help you with ways to improve it to!
Mortgage Lenders will want to verify the data used on your application before they can issue you a binding mortgage offer, so to make sure the home buying process is as stress-free as possible, it makes sense to get everything you need to hand prior to applying for the mortgage
Your lender may want to see any or all of:
- Your last three months’ bank statements
- Your last three months’ payslips
- Proof of bonuses/commission
- Your latest P60 tax form, showing income and tax paid
- Your last three years’ accounts or tax returns (if self-employed)
- Proof of deposit (e.g. latest 3 months’ savings account statements) • ID documents (usually a passport or driving licence)
- Proof of address (e.g. utility bills or credit card bills)
- A gift letter; If you’re receiving help with your deposit, the lender will need a letter from the person providing the gift explaining that they won’t part own the home and that it’s not a loan.
Tax is payable when you purchase a property above a certain value. The amounts can be quite significant and you will have to factor this into your budget when considering how much deposit you need to buy a house.
The actual name of the tax and the rates applied depend on where you are buying in the UK, whether you are a first time buyer, and if not how many properties you currently own.
In England and Northern Ireland it’s called Stamp Duty Land Tax and is payable for purchases above £125,000, though currently, first-time buyers are exempt for properties up to £300,000
From 1st April 2018, Wales gained control of her own rates, called the Land Transaction Tax, which applies to properties over £180,000
In Scotland, the Land & Buildings Transaction Tax applies to properties over £145,000, or £175,000 for first-time buyers from the 30th June 2018
In England, Wales, and NI a 3% surcharge is imposed for additional properties such as second homes or buy-to-let. In Scotland, the surcharge is 4%.
The freeholder of a property owns the property, and the land that the house is situated on……
If you buy a freehold, you’re responsible for maintaining your property and land, so you may need to budget in these costs.
By owning the house as freehold, you won’t need to worry about paying ground rent, the lease running out, our, having to deal with the freeholder (landlord)
With a leasehold, you own the property (subject to the terms of the leasehold) for the length of your lease agreement with the freeholder.
When the lease ends, ownership returns to the freeholder, unless you can extend the lease.
Most flats and maisonettes are owned leasehold, so while you own your property in the building, you have no stake in the building it is in.
This means you won’t be responsible for maintaining and running the building.
The landlord will do this or appoint a managing agent to do so for them.
However, the leaseholders share the costs of this by paying a service charge, or ground rent, to the landlord.
You might also be asked to pay into a sinking fund, to help cover any unexpected maintenance work needed in the future.
The length of time to complete your home ownership journey will be dependant on a number of factors, such as:
How long it takes you to do your side of things – sending in supporting documents choosing a property, and applying for the mortgage
How long it takes the lender to appoint a survey on the property
How long the searches take via the solicitor
How long it takes for both parties to exchange contracts and agree a completion date
Typically, from application to getting your keys, you’re looking around 8-12 weeks. It can be quicker, and it can take longer.
Warrington Mortgage Centre is a Trading Style of Mortgage Centre (NW) Ltd.
Mortgage Centre (NW) Ltd is authorised and regulated by the Financial Conduct Authority – FRN 826982. Registered in England & Wales: 11614569.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.