First Time Buyer
Thinking of buying your first property having found your dream home and wondering where to start. as a first time buyer.
A good place to start is by contacting Mortgage Health Check and we’ll arrange a FCA registered Mortgage Broker who will provide free mortgage advice and if you decide to proceed they will support you every step of the way.
Taking your first steps onto then property ladder can be exciting but also daunting.
There’s a lot to think about and even more to do – having saved the deposit you need to find the right area, visit Estate Agents, view properties to find the right home and that’s before you apply for a mortgage.
We are here to help you find the expert Mortgage Advisors to explain the whole process step by step, answer your questions and give you regular updates.
Your dedicated Mortgage Advisor who will be with you throughout the whole process from the initial call through to you putting the key into the door of your new home.
As a first-time buyer we know you’ll have loads of questions and we are here to help.
The most frequently asked questions are below but if you have any other question that aren’t there get in touch and we’ll answer it for you, we’ll also add it to our list as if you are asking the question someone else will be thinking it.
Am I a first time buyer?
You are considered a first time buyer if you or the person you’re buying a property with has never owned a home before.
The term is slightly misleading though, if you inherit a property, you will still be considered a first time buyer when you actually ‘purchase’ your first property.
What deposit do I need as a first time buyer?
Your deposit will vary depending on the Lender or if you use a first time buyer scheme.
At a minimum, you’ll need at least 5% of the property value. However, the more you can put down for your deposit, the better rates of interest you’ll get as you’re considered a lower risk.
The majority of lenders will accept a deposit as a gift from family members and some will even allow a family member to be a guarantor if they have their own property.
How much can I afford to pay for my first house?
This will depend on a variety of factors, such as:
- The amount of deposit you have
- How much you’d like to borrow
- Your income
- Your outgoings and credit commitments
- Whether you need to make home improvements
Speak to a FCA registered Mortgage Advisor, who will be able to advise you on your affordability and how much you can borrow as a first-time buyer.
Do I need to pay stamp duty?
This depends on the cost of the property, you will have to pay Stamp Duty Land Tax (SDLT) if your property is in certain brackets. If your property value is:
- Under £300,000 – you won’t need to pay SDLT if you’re a first time buyer
- Between £300,001 and £500,000 – you’ll have to pay 5% on every pound over £300,000
- £500,000 – Normal rates of SLDT apply
What type of mortgage do I need?
There a various types of mortgages and your dedicated Mortgage Advisor will look at your circumstances and advise on the best product to meet your needs.
How do I apply for a mortgage?
You’ll need to supply documents to verify your income, outgoings, proof of deposit, credit history and Identity.
Your dedicated Mortgage Advisor will source the best product for you after assessing the documents you supply from the whole of the mortgage market and talk you through the mortgage including interest rate, type of mortgage, monthly payments and any conditions on the mortgage.
Once you are happy with the mortgage product they have sourced the Mortgage Advisor will complete the application on your behalf and deal with the Lender throughout the application.
What documents do I need as a first time buyer?
The standard documents required for first time buyers are:
3 months payslips
3 months bank statements
Proof of deposit
Proof of ID
Proof of address for the last 3 years
Copy of your credit report (available for free) this isn’t required by the Lender as they do their own credit search but it’s good practice to check your credit report regularly to ensure there’s nothing on it that may affect your mortgage application.
The Lender may ask for additional documents but to start the process the above documents are required all these documents can be emailed to us.
What’s a DIP?
A DIP is a Decision in Principle sometimes called an Agreement in Principle (AIP).
The DIP is where the Lender agrees in principle to lend you the money to purchase your property.
An Estate Agent may ask for a copy of the DIP to show that you can afford to purchase the property.
Obtaining a DIP is not a mortgage offer the Lender will still assess your affordability and check your credit rating to ensure that you can repay the money they may lend you.
What’s a Conveyancer?
A Conveyancer is a Solicitor who deals with property transactions.
At Mortgage Health Check, our FCA registered mortgage broker has a panel of Conveyancers who can act on your behalf or you can arrange your own Conveyancer if you would prefer.