First Time Buyer Mortgage

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What Is A Mortgage?

Can I Afford a Mortgage?

How Much Can I Borrow?

How Much Deposit Do I Need?

Can I Get A First Time Buyer Mortgage With Bad Debt?

What Schemes Are Available For A First Time Buyer?

Why Do I Need A Mortgage Advisor?

First Time Buyer Mortgage

Getting a mortgage is one of the biggest financial commitments you’re ever likely to make so it should be taken seriously. However, while it may feel scary, securing a first-time buyer mortgage shouldn’t be difficult thanks to the help of Friends Capital. 

Friends Capital have pre-existing relationships with mortgage lenders and we are experts in first time buyer mortgages. We can help you find the best possible mortgage deal. We will review your personal circumstances and then search the entire market to ensure you get the best mortgage rates possible. We will then deal with all the paperwork, submit your mortgage application, liaise with your mortgage lender and solicitor, and ensure that your mortgage application is completed as quickly as possible. We can:

  • Save you money on your mortgage deal 
  • Offer a free consultation 
  • Offer unbiased financial advice 
  • Save you time in your mortgage application 
  • Give you a dedicated account manager who is available to you through the process

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What Is A Mortgage?

A mortgage is a loan which is taken out to purchase a property. The loan is secured against the property you purchase until you pay the full amount back. The mortgage will be paid back over a length of time, referred to as a ‘term’. If you fail to make your repayments, the lender of the mortgage can take back the property, referred to as repossession.

Can I Afford a Mortgage?

First thing you should do is assess your income, outgoings and debts. Decide what you can realistically afford to pay every month. The mortgage repayments needs to be in your financial comfort zone. 

When you contact a mortgage advisor, they will work out how much you can afford by conducting a detailed affordability check. You will also need to prove your income. 
Before you start looking at properties, it’s advisable to get an ‘agreement in principle’ from one or two lenders. This isn’t a guaranteed mortgage offer, but it gives you a good idea of what you could buy. It’s likely that estate agents will ask you to get an agreement in principle before you can start making offers.

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How Much Can I Borrow?

Lenders simply multiply your income to work out how much to lend you. Typically, a single person could borrow four times their single salary while a couple would be offered four times their joint salary. They will then review your outgoings and work out how much spare income you have to make repayments. Lenders will review your: 

  • Credit rating – You can check this yourself here
  • Salary
  • Outgoings
  • Deposit amount

How Much Deposit Do I Need?

When buying a property, you will need to pay a deposit. A deposit demonstrates to a lender financial discipline and reduces the risk of lending you the money. The more deposit you have, the lower your interest rate could be. You’re going to need to get a substantial deposit together to boost your mortgage chances.  You usually need a deposit of at least 10%. Some lenders will accept 5%, however the mortgage interest rates will be less competitive. To get a better mortgage interest rate you will need at least a 10% deposit. 

Can I Get A First Time Buyer Mortgage With Bad Debt?

A history of bad credit, or having very little or no credit history at all, can make life more difficult when you approach mortgage providers, especially those on the high street. However, many mortgage lenders, especially those in the specialist sector, will be concerned with the various circumstances behind your score, and will use their own methods to assess an applicant’s suitability rather than relying on the numbers generated by credit reference agencies. 

You will only be able to approach certain specialist mortgage lenders by using an intermediary like a mortgage advisor.

First Time Buyer Guide

What Schemes Are Available For A First Time Buyer?

Lifetime  ISA  – If you’re aged between 18 and 40, the government could add a 25% boost to your savings (up to a maximum boost of £1,000 per year) until you’re 50. However there are very small number of building societies and banks that offer this.
Right to Buy  –  This scheme gives tenants who rent from a council or local housing association the chance to buy the home they live in.
Starter Home Scheme – Available to people under 40 years old, this scheme aims to offer first-time buyers one of around 200,000 new homes priced 20% less than their market value.
Shared Ownership  – Allows you to co-own a property with a landlord (typically a council or housing association).

Why Do I Need A Mortgage Advisor?

Getting a mortgage is one of the biggest financial decisions you’ll make, so it’s important to get it right. The mortgage market is incredibly competitive and it can be hard to understand what exactly is on offer. There are many different providers and a wide range of products and rates available. You should end up with a mortgage that suits your needs and circumstances, this is why it’s important to get advice from an independent mortgage advisor.

If you don’t seek professional mortgage advice, you could end up:

  • With the wrong mortgage for your situation, which would be a costly mistake in the long run.
  • Being rejected by your chosen lender, because you didn’t understand the restrictions clearly or what circumstances the mortgage was designed for.

A mortgage advisor, also known as an independent mortgage broker, is a specialist with in-depth knowledge of the market. They’re able to look at a range of mortgage products which suit your needs. The advisers will also have access to exclusive deals on the market, and some specialist lenders can only be accessed through a mortgage adviser.

Before you pay any money to a mortgage advisor, they can help you find out:

  • The type of mortgage you need
  • How much you can borrow and for how long
  • The type of interest and rate that you can borrow at

When you instruct a mortgage advisor, they will:

  • Gather all documents that a lender will need
  • Fill in your mortgage application
  • Liaise with the mortgage lender to get the application through as quickly as possible
  • Liaise with your solicitor

Basically the advisor will take all the stress out of purchasing a house.

How Can Friends Capital Help with First Time Buyer Mortgages?

Friends Capital have existing relationships with first time buyer mortgage lenders. We can search the entire market and get access to the best and most exclusive deals available. Then we will choose the deal that is  most appropriate to your personal circumstance. We can: 

  • Find you a lender that specialises in first time buyer mortgages
  • Find you a deal appropriate to your personal circumstance
  • Offer unbiased financial advice
  • Give advice on what mortgage lenders will require, including giving you advice on an exit strategy for the mortgage end
  • Give you a no obligation mortgage quote
  • Deal with all the paper work, liaise with the lenders and solicitors. We will also make sure the application goes through as quickly as possible

Two Steps to Contacting Friends Capital 

Step 1 

Either call us, email us , book an appointment online or request a call back below.

Step 2 

One of our friendly advisors will either call you back within 24 hours (usually the same working day), or will take details from you in order to best deal with your situation. 

When you speak with us, we will take a ‘fact find’. At this stage we take basic details about your situation. We will then search the whole of the market and find you the best deal available. 

If you are happy with the deal that we offer, we will then contact the lender for you and get you what is called a ‘decision in principal’. 

If you’re happy with the decision in principal then we will secure this deal for you and deal with the application for you on your behalf. 

We aim to get the lowest mortgage rates on the market

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