Mortgage Brokers For First Time Buyers


Mortgage Brokers For First Time Buyers

Mortgages - Assisting Your Next Move
Potentially you could borrow anywhere between 3 – 4.5 times your salary (if you’re buying as a couple it’ll be more like 2.5 times your combined incomes).

A Mortgage Brokers for First Time Buyers is someone who has never owned a residential home of their own, however this excludes ownership of Commercial properties. One of the first boxes that needs to be ticked by a first-time buyer is the amount of deposit they are going to put down, as this will establish the amount of borrowing required from a mortgage lender.

The loan to value popularly known as LTV varies from lender-to-lender and hinges on the amount of deposit the borrower is willing to put down. The higher the deposit, the more options there are available, in terms of interest rates.

As part of the First-time buyer mortgage application process, the mortgage lender will look at several aspects pertaining to the applicant and the property including affordability criteria credit history, property valuation and conveyancing.  Once satisfied the lender would make an offer and if successful this would proceed to completion.

Conveyancing is not regulated by the FCA.

A Buy to Let mortgage is essentially an investment made by the borrower where the objective is to rent the property rather than reside in it as their primary home. Buy to Let mortgages are generally more expensive, than a standard residential mortgage with lenders expecting higher deposit amounts to be put down by the borrower and the interest rates can be higher too.

In most cases, a Buy to Let mortgage will be taken out on an Interest only basis, rather than Capital repayment basis. On an Interest only the borrower would repay only the interest component to the lender, while the capital would still be outstanding at the end of the mortgage term. To ensure that the customer will be able to repay the capital at the end of the term, the lender may require details of the proposed repayment vehicle.

The eligibility of a Buy to Let mortgage is assessed by lenders differently to the way they would assess a Residential Mortgage. For a Buy to Let mortgage, the lender will expect the rental income on the said property to be higher than the expected repayment on the mortgage.

Some forms of Buy to let mortgages are not regulated by the FCA.

The quickest way to discover the maximum you can comfortably borrow is by speaking to an experienced residential mortgage broker, such as ourselves, to check the mortgage deals available, that way you can be sure you get the right deal.

Contact us now to get your home move moving!

Use these quick links to get an idea about how much you could borrow and apply today.

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