Not sure how to buy your first home? Worried about your finances? Our mortgage advisors are here to help you get onto the property ladder safely.
Buying your first home can seem like a daunting process.
We know how intimidating it can be to buy your first home. That’s why we make the entire process as simple and straightforward as possible by providing pin-sharp advice on your mortgage.
Our mortgage advisors are experts at helping first-time buyers get into the housing market. We can speak to your mortgage lender, solicitor, and estate agent to negotiate a deal that’s best for you. We’ll break the steps down so you’re aware of the process, help you get the property you want, and provide all the information and advice you need to get the best deal possible.
Why Choose Rite Mortgages?
Dedicated mortgage services, built for your specific circumstances.
Expert advice from mortgage professionals, saving you time, money, and stress.
Exclusive access to mortgage rates you won’t find anywhere else.
We can manage the communication between your lenders, solicitors, and estate agents.
We’ll work with you long-term until you get your dream home.
Free, no-obligation review of your circumstances.
We’re directly Authorised by the FCA (Financial Conduct Authority).
Tips for First Time Buyers
Repay any expensive personal debt.
Overdrafts, Payday Loans, Credit cards and Store cards have typically high rates of interest and any debt that you have outstanding can count against the total amount you are allowed to borrow. It’s best to go into a new mortgage with as few outstanding debts as possible.
Save for a deposit.
You will need a deposit of at least 5% of the value of the property you would like to buy but for example a deposit of 25% will give you access to a much wider range of products at a far lower rates of interest.
If you don’t know your credit score it may be worth finding out first. Its important that you have a “clean” credit history and you will be more likely to be successful in your mortgage application if you have already had a history of borrowing money. Those with no credit history will have a very low credit score with lenders.
Be aware of all the potential costs.
There is far more to buying your first home than making the mortgage payments. Lenders, brokers, lawyers and valuers all charge fees although some of these can be added or included within the loan. Then there is the cost of moving, decorating and furnishing your new home.
Is there someone who can help?
It helps when getting a mortgage if there is joint (more than one) borrowers as both incomes are taken into account and costs are split. However it is also common to enlist the help of family.
95% Loan to Value Mortgages
This type of mortgage can be a sound investment if you’re a first-time buyer with good credit, savings, and annual earnings. You’ll need 5% of the price of the property as a deposit, but you may end up making that money back as your home value increases over time.
We’ll show you how to pick the best 95% mortgage for you, without running any other risks you may face by going at it alone.
Help to Buy
The new government backed mortgage Help to Buy mortgage schemes allow you to buy a home with just 5% deposit. Operated by a small number of lenders the government will offer financial assistance to First Time Buyers or Home movers in the form of a mortgage guarantee or equity loan. If you already have a deposit of 15 to 20%, it is almost certainly cheaper and easier to apply for a mortgage in the normal way. If not, Help To Buy could be the solution you need to buy your first home or move up the property ladder. Certain rules apply so speak to your mortgage broker for more details and to find out which help to buy scheme may be right for you.
It can be difficult to afford the required deposit on a house, especially if you are renting or have low income, so shared ownership gives you a better chance of getting into your first home with lower initial costs. Shared ownership splits the property between you and the housing association responsible for selling it. You can own 25% – 75% of the property, paying for the rest in rent and then gradually buying the entire home once you’re able. The more you own, the less you’ll pay in rent. Although this can be beneficial to begin with, the costs can increase as time goes by. Our mortgage advisors can help you stay aware of these costs, while still allowing you to get into your first home.
Shared Equity Schemes
Shared equity schemes are a great way to get your first home when you couldn’t otherwise afford it. These schemes allow you to spend a 5% deposit on a home, with an extra 20% being added by the government to help you into your first property. This also provides you with a better deal from your mortgage supplier, so a shared equity scheme can save you a lot of money over time.
Shared equity schemes do come with some downsides. It can become less beneficial if the house market changes, with your payable debt increasing in line with house prices. There are also some untrustworthy sellers that will offer poor deals to first-time buyers.
We’d recommend getting in touch with our advisors before agreeing to a shared equity scheme. We’ll help you find the best mortgage, make sure you stay out of trouble with poor sellers, and help you get into your first home without a hitch.
Looking for your first home? Get in touch.
Our dedicated advisors will find you the best mortgage deals and work with you to make sure you get your dream home. Fill out the form below to chat with us today.