First Time Buyer
Buying your First Home
We understand that buying your first home can be daunting, stressful and likely to be the biggest purchase of your life so far. The first daunting question you will be asking yourself is where do I start? Do I get an offer accepted on a property first or do I find out if I can get a mortgage? For us, the answer to that question is quite simple – preparation is key!
Are you a First Time Buyer Looking to Buy your First Home?
You should always find out if you can get a mortgage first before you start looking at properties. Yes, we know that is boring and not as fun as scrolling through Right Move, Zoopla and other property listing sites, but imagine having an offer accepted on your dream home that you fell in love with, at first sight, only to find out you can’t afford to buy it.
When looking to get on the property ladder, it is important to make sure you complete things in the right order if you don’t want to face unnecessary stress, disappointment and heartache.
We would always recommend you speak to a whole of market mortgage broker like The Mortgage Pride at the earliest opportunity so you can be a confident and prepared first time buyer. Our personalised mortgage planning service at The Mortgage Pride is designed to help get you mortgage ready and guide you through the process to turn your dream of owning your own home into a reality.
Why is it Important to be Mortgage Ready as a First Time Buyer?
When you find your dream home, you want to ensure your offer is accepted by the vendor. The estate agent is likely to ask you for the following in order to qualify your offer for the seller:
- Agreement or Decision in Principle to confirm you can obtain a mortgage to buy the property
- Evidence of your deposit to verify that you can proceed
- Details of the solicitor/conveyancer you intend to use for the legal part of the property purchase
Remember, there may be several other offers from several other potential buyers so it is important you are fully prepared and can provide the above as soon as it is requested.
How can our Mortgage Planning Service Benefit you?
Our mortgage planning service will guide you safely and confidently through the mortgage and home-buying process and help you demonstrate to an estate agent or vendor you are fully mortgage–ready. It will;
- Confirm how much you can borrow
- Confirm how much you can afford – this is sometimes different to how much you can borrow
- Explain how much deposit you’ll need and what you can use as a deposit
- Confirm how much your mortgage will cost you
- Explain the house buying process
- Make sure you are aware of all the associated costs involved in buying your first home
- Recommend the right mortgage for you based on your personal needs and circumstances by accessing the whole of market
- Take care of all your mortgage and protection requirements
- Provide a personal service, so you are confident that the mortgage is right for you
As a First Time Buyer Can I Obtain a Mortgage Online Myself?
Yes, you can. But the affordability calculators available online do not check that the information you are submitting is accurate or that your full circumstances meet the mortgage lenders lending criteria. This may mean that you think you have a mortgage agreed in principle when in reality a full mortgage application may decline.
Each mortgage lender has its own affordability rules, calculations and lending policy. For example, some lenders will accept 100% of your overtime whereas others don’t. Some will lend to homebuyers who are an agency or zero-hour contract workers whilst others require you to be on a permanent contract. Some lenders may not accept certain adverse credit histories.
After understanding your circumstances, we’ll search the whole of the market to match you to the right mortgage lender for your personal situation.
As a whole of market mortgage broker, we are able to access thousands of products, including exclusive rates so you can be confident we are recommending the most suitable option for your personal circumstances. Not only that, because we have access to over 100 different mortgage lenders, we will save you time and energy sourcing not only the right mortgage lender for you but also the most cost-effective option for you.
Rest assured we’re with you every step of the way. From understanding how much you can borrow to collecting the keys to your new home and beyond. We aim to minimise the stress so you can enjoy the experience. You will understand what we are doing and most importantly, why.
If you have any questions about buying your first property and want to be confident you are mortgage ready contact us!
First-Time Buyer Timeline
Assessing Your Finances
Before embarking on your first time buyer journey, it’s crucial to assess your finances. Determine your budget by considering your savings, income, and existing financial commitments.
You may want to seek the assistance of an expert mortgage advisor who can help you understand how much you can borrow and the associated costs. A good mortgage advisor can provide personalised mortgage planning advice and support to help you achieve your financial and property goals.
The Mortgage Pride recommend speaking to a mortgage broker who specialises in helping first time buyers at the earliest opportunity to avoid unnecessary stress and upset.
Educate yourself about the different types of mortgages available in the UK for a first time buyer. Fixed-rate mortgages, variable-rate mortgages, and Shared Ownership schemes are just a few options to explore. Research mortgage lenders, compare rates, and consider seeking professional advice to find the best mortgage deal for your circumstances.
Remember, not all mortgage lenders are the same so it is important to ensure you understand which mortgage lender is most suitable for your personal circumstances especially if you perhaps have complex income, are self-employed or have adverse credit.
Getting in touch with a whole of market mortgage broker like The Mortgage Pride can really help you to understand what your best options are.
Saving for a Deposit
Saving for a deposit is a significant step in the first time buyer process. The minimum deposit required typically ranges from 5% to 20% of the property’s value. Start saving early and consider schemes like the Help to Buy ISA or Lifetime ISA, which offer government bonuses on your savings for your first home purchase.
Exploring Government Schemes
The UK government offers various schemes to support first-time buyers. Some popular schemes include Shared Ownership and the First Homes initiative. Research these schemes to determine if you meet the eligibility criteria and understand how they can assist you in purchasing your first home.
Researching the Property Market
As a first time buyer, you should familiarise yourself with the property market by researching different locations, property types, and prices. Consider factors like proximity to amenities, transport links, schools, and potential for future growth. Online property portals, local estate agents, and attending property viewings can provide valuable insights into the market.
Conducting Property Viewings
When attending property viewings, be prepared with a list of questions and take note of essential details. Look beyond the aesthetics and assess the property’s condition, energy efficiency, and potential renovation costs. Don’t rush into a decision and consider viewing multiple properties to make an informed choice.
Making an Offer
Once you have found the right property for you, you will need to submit an offer to the seller, usually via the estate agent that are marketing the property. The Mortgage Pride can support you in this important part of the homebuying process. It is important to be mortgage ready when you offer on a property to show the seller and estate agent your offer is valid. It is likely they will ask for a copy of your mortgage decision in principle and proof of deposit to substantiate your offer.
Applying for Your Mortgage
Your offer has been accepted so it is now important to submit your full mortgage application and supporting key documents such as proof of your income and bank statements to your chosen mortgage lender.
When your chosen mortgage lender receives your full mortgage application, your application and supporting documents will be assessed by a mortgage underwriter to make sure you meet their lending criteria and affordability. They will also instruct a mortgage valuation on the property you intend to buy.
Once the mortgage lender is confident your application is affordable and your circumstances meet their criteria and the property you are purchasing is suitable security to lend on, they will approve your mortgage and issue your mortgage offer.
One of the benefits of using an experienced mortgage broker like The Mortgage Pride is that they will have confirmed the mortgage lender is the most suitable one for your circumstances and needs prior to submitting the full mortgage application on your behalf.
Appointing a Solicitor
Once you’ve found a property and made an offer that’s been accepted, it’s time to appoint a solicitor or conveyancer. They will handle the legal aspects of the purchase, including property searches, documentation, and ensuring a smooth transaction. You are able to choose any solicitor or conveyancer providing they are on your chosen mortgage lenders approved panel.
The Mortgage Pride can provide you with recommendations for suitable solicitors and conveyancers so just ask.
Arranging Suitable Insurances
Protecting you against the unexpected
Your mortgage has been offered and your purchase is progressing. Now is the time to start researching your options for suitable insurances such as life insurance, critical illness cover, income protection and home insurance.
These policies are designed to provide you with financial protection in the event the unexpected happens so you have peace of mind you and your loved ones can stay in your new home long term. You can read more about the different insurances you may want to consider here.
The Mortgage Pride don’t just offer mortgage advice, they are insurance experts too and are able to help you make sense of the different insurances you may want to consider. They can also arrange suitable life insurance, criticial illness cover, income protection and home insurance for you by matching you to the most suitable insurance providers for your circumstances.
The Conveyancing Process
During the conveyancing process, your solicitor will conduct various checks, such as local authority searches, land registry searches, and environmental searches. They will also liaise with the seller’s solicitor to address any queries or concerns (known as enquiries).
Stay in regular contact with your solicitor to keep track of the progress and action any requests as soon as possible to avoid unneccessary delays to the purchase process.
Finalising the Purchase
Once all checks and legalities are complete, your solicitor will exchange contracts with the seller’s solicitor. At this stage, you will need to pay your deposit. A completion date will be set, and you can start making arrangements for moving into your new home.
On completion day, your solicitor will transfer the remaining funds to your seller, and you will receive the keys to your new home. Congratulations! You are now a homeowner!
Take inventory of the property, notify utility providers of your move, and consider purchasing key insurances such as life insurance, critical illness cover and income protection to protect you and your family if you haven’t already set these up.
*Your home may be repossessed if you do not keep up repayments on your mortgage.