First time buyer

Mortgages for First Time Buyers
The prospect of buying your first home could be both daunting and confusing. Our aim is to guide you through the transaction from start to finish so that you understand exactly what the purchase entails and how much it will cost. We can recommend the services of local solicitors to assist in this process. This maybe the largest financial transaction you are ever likely to make so it must be done with clarity.

Prior to the credit crunch, the property market moved very fast which led to significant increases in property prices. This made it very difficult for many people to afford to buy a home, particularly for first time buyers.

The credit crunch of 2007 saw property prices drop considerably in many regions of the UK, making housing more affordable. However, since the 4th quarter of 2013, we have seen an improvement in the housing market and house prices have started to rise again.(Source: Halifax House Price Index -- February 2014)

Getting on the ladder
There are actually some advantages to being a first time buyer. Interest rates are currently very low, and first time buyers are more appealing to sellers because they are not in a chain.

As we have access to many lenders we are well placed to assist you, however these days it is a necessity to provide a substantial deposit in order to get a mortgage (although there are a number of 95 per cent mortgage deals around), and you may be eligible for further assistance from the Help to Buy Scheme.

Help to Buy Scheme
In April 2013, the Government rolled out the first phase of a new Help to Buy scheme, which offers equity loans to first time buyers (as well as existing homeowners) by providing borrowers with a loan for 20% of the property value. This scheme applies to new build properties only, and with the purchaser being required to put down as little as 5% as a deposit, a mortgage of only 75% would be needed from a lender.

This scheme is available in England only until 31 March 2016. Different variations to the Help to Buy scheme apply in Wales and Scotland.

The second phase of the Help to Buy scheme came into effect in January 2014. In this scheme, first time buyers (as well as existing homeowners) are able to purchase either a new build property or an existing property in the UK - not just in England - with a deposit as low as 5%.

A mortgage is required from a lender of up to 95% of the property's value, with the Government guaranteeing the lender (not the purchaser) up to 15% of the property value.

This mortgage guarantee scheme is available for properties with a purchase price up to £600,000.

Call us now or use our enquiry form and we'll be delighted to assist you.