First Time Buyer Mortgage

If you’ve never bought a property before you are regarded as a first time buyer. Yes, this also applies to singles and couples who haven’t bought a house yet.

Mortgage terms that are not available to non-first-time purchasers can be advantageous to first-time buyers.

Lender-based programs such as Shared Ownership are intended to assist purchasers in climbing the property ladder.

Prior to making any decisions, it is crucial to thoroughly investigate all of your alternatives in order to take full advantage of this opportunity and start your homeownership adventure.

A variety of programs are offered to assist first-time homebuyers in climbing the housing ladder. The programs can help with a deposit shortage, an income gap for affordability, or both.

Advantages of First-Time Buyer Mortgage

Minimal deposit: When you buy a house, you must provide a deposit, also referred to as a “down payment.” Frequently, first-time purchasers lack the funds necessary to make a sizable down payment. There are lenders who provide a lower minimum deposit. It is possible for you to obtain a 95% loan to value product. This implies that you will only need to contribute 5% of the buying price with personal funds.

Preferred Buyer: Since there is no chain involved in your transaction, as a first-time purchaser, you have the advantage over other buyers! It is more complicated for everyone involved the longer the chain. Your offer is more appealing than those from homeowners wishing to sell their current property since you will be the first in a chain.

Creative Mortgage Options: Lenders are constantly thinking of methods to assist first-time homebuyers. Gifted equity as a deposit, guarantors for income gaps, and deposits from family or friends are just a few of the creative mortgage alternatives available.

Government Support: The government has consistently looked for methods to aid first-time homebuyers as they climb the property ladder. There are still some choices available even if “Help to Buy,” one of the most well-liked programs, has since been discontinued. These consist of “right to buy” programs for housing associations and councils. Programs like “shared ownership” and “help to build” are also included.

First-Time Buyer Mortgage Schemes

A variety of programs are offered to assist first-time homebuyers in climbing the housing ladder. The programs can help with a deposit shortage, an income gap for affordability, or both.

Shared ownership, also referred to as “part-buy, part-rent,” is the process by which you acquire a portion of the property’s worth that piques your interest. Typically, the property is bought from a housing authority or supplier. You could anticipate to pay between 10% to 75% of the property’s worth when purchasing a new development, with the remaining portion being rented. You can use a procedure known as “staircasing” to enhance your ownership share of the property after six months of possession.

Loan to Value (LTV) is a term that you may hear people use to when discussing mortgages. This is merely a comparison between the loan amount you took out to purchase your house and the property’s appraisal provided by the mortgage lender. Your interest rate is likely to be lower the lower the LTV. This is a result of the lender bearing less of the risk when you spend more of your own funds.

High-street lenders frequently provide the best rates, especially if you have a bigger deposit. The interest rate will be slightly higher if you choose to use one of the plans or have a lower deposit. You can look up a variety of high street lenders with the assistance of an independent mortgage broker.

Get in touch with Chapel & Stone Mortgages

Phone Number

0330-233-2181

0776621205

Location

Office B1, Baird House, Liverpool Innovation Park, 360 Edge Lane, Liverpool.

L7 9NJ

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[email protected]

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0330 223 2181