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Residential Mortgages for First Time Buyers

Applying for your first mortgage can be a daunting process, but we'll be here every step of the way

We can compare from a wide range of lenders to ensure you choose the best rate for your budget

We can even advise you on your affordability ahead of time so you can find your perfect first home

Service provided by Diane Wright was excellent & very professional in everything she dealt with

 

Can I afford to buy a house?

 

Before you start looking at properties, you need to know how much you can afford to borrow and how much deposit you will need.

There are various buying shemes available, such as a shared ownership and shared equity. This means you could purchase a percentage of the property, usually between 25%-80%. You would then pay monthly rent or interest on the share that you don't own. This is a great way for first time buyers to get their foot on the property ladder.

Other costs should be considered when planning to purchase your first home, including survey costs, solicitor's fees and insurance payments; as well as furnishing & decorating costs. As a first time buyer, you will not be required to pay any stamp duty (up to a property value of £300,000).

We can take you through a Cost of Moving and Affordability assessment so that you know all of the costs involved in buying your first property before, during and after the purchasing process.

When should I begin the process?

 

Even if you are still saving up your deposit, it's never too early to begin the process. By finding out your affordability, you'll have a much better idea of the amount you can borrow, meaning you know your budget when you start house-hunting!

 

By knowing your affordability, you'll also have a clearer idea of the amount of deposit you require. 

What is a residential mortgage?

 

A residential mortgage is a type of loan designed to help the borrower purchase a house, using the property as security against the loan.

The mortgage is a loan secured on the property which you then pay back in monthly installments over an agreed term with interest added. These details can be personalised to suit your needs & budget.

Types of residential mortgage

 

Interest is charged on mortgages in three different ways, depending on the kind of loan you choose.

Fixed Rate Mortgages

With a fixed rate plan, the rate of interest you pay is fixed for a set term (most commonly two, three or five years). This means you can budget properly, knowing that your monthly payments will remain the same amount for your chosen term.

Variable Rate Mortgages

With a variable rate mortgage, you’ll pay what is referred to as the lender’s standard variable rate (SVR), which changes monthly at the discretion of the lender, tracking general economic changes in the country and in the lending market.

Tracker Mortgages

The interest rate you pay when you take out a tracker mortgage will vary monthly as well but will directly track changes in the Bank of England base rate, staying a set percentage above it during the tracker rate period.

Why do I need a mortgage adviser?

 

With so many different types of mortgages available, applying for one can be a confusing & stressful process. We are here to not only guide you through the entire process, but to ensure that you are taking out the most suitable mortgage for your requirements. We'll even recommend & instruct a solicitor for you, which could save you money and unnecessary hassle.

Book a free, initial appointment today to discuss your situation, your plans & to get the process started.

Your property may be repossessed if you do not keep up repayments on your mortgage. Diane Wright Financial Services charge a non-refundable mortgage arrangement fee of between £99 and £399 when an application is submitted to a mortgage lender for you. Your adviser will agree the arrangement fee with you before commencing any chargeable work. The actual amount payable will take account of your financial circumstances, the complexity of borrowing requirements and the amount of work required to fulfil your needs.
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