The first step is to contact us and we will advise you on the mortgage options available to you. It doesn't matter if you haven't found a property just yet, we can provide you with some facts and figures that will help you select the property within your price range.
In the meantime we've outlined below some background information on mortgages for first time buyers that we hope you'll find useful.
How much can you borrow?
The amount of mortgage you can get depends on your income. Some lenders use a multiple of your income others look at how much you can afford based on your income and outgoings. As a rough guide, a typical multiple is four times your income. This figure could be higher or lower depending upon your individual circumstances and different lenders' criteria. Lenders who look at what you can afford base this on the number of people and any loans or debts that you have outstanding. Some lenders offer very good deals for first time buyers, so it always worth asking us to research the market on your behalf.
What other costs do you need to be aware of?
It is also worth remembering the additional costs, on top of your deposit and mortgage that you will be expected to pay.
For example, you will have to pay stamp duty, which is (from Jan 1st 2010) 1% of the purchase price for properties between £125,001 and £250,000, then 3% up to £500,000 and 4% on properties over £500,000. For properties up to £125,000 you do not have to pay stamp duty.
Plus you will have to pay for the survey and the valuation of the property, and solicitor's fees.
You may also have fees to pay to the lender for your mortgage. These could be an arrangement fee and/or booking fee. Contact us to find out how much these fees may be.
Independant Financial Advisor
T: 01795 477744
M: 07886 516087