First Time Buyer Mortgage
Average house prices are still a quite scarey £183,626 Prices appear to be static, although the 2.7% annual rate of increase is falling*!!
So is now the time to buy? Or rent, wait and save a bigger deposit??
Anyone 'stepping on the ladder' for the 1st time needs the VERY best, and most sensitive financial advice. We will answer all your questions, including: -
- What about a deposit?
- How much can I borrow?
- What will it cost?
Mortgage, Protect & Insure takes the hassle out of finding the most cost effective way of repaying borrowing. We do this by assessing the whole of the mortgage market place.
Your home may be repossessed if you do not keep up repayments on your mortgage.
For mortgage advice you can choose how we are paid: -
- No fee. We will receive commission from the lender when your mortgage completes.
Or
- A fee. A fee of typically £580 payable on completion of your mortgage. Any commission received from the lender will be refunded to you.
Or
- A combination of a fee & commission. A fee of typically £280 payable on completion of your mortgage In addition we may receive commission from the lender.
* Average House Prices for England & Wales, April 2008. Source: - HM Land Registry - House Price Index (accessible via our Links page).
---pagebreak---
I'm buying for the 1st time . . . . . where do I start?
Firstly, talk to family & friends, people who can offer you the benefit of their experience - good and bad! And then speak to a good quality independent mortgage adviser.
You should get the 'feeling' that they have your best interests at heart and that their advice is both impartial and considered, particularly: -
- With uncertainty over interest rates, and falling property prices IS NOW THE RIGHT TIME TO BUY?
- What about a deposit as 100% loans are currently not available?
- What can I afford?
- How much can I borrow?
- What's the right type of mortgage?
- What's the process I'm about to follow?
What about a deposit?
The 'credit crunch' you will have read about has seen 100% mortgages disappear, so a deposit is required. It might be better to wait (can you stay at home a bit longer??), and save as much as possible. Could anyone in the family help you take this first step.
The more you can 'put down' the better - this includes more choice and a better, cheaper mortgage.
Other costs you may need to budget and save for include: -
- Property Survey Fees;
- Legal costs;
- Mortgage arrangement fees; and, of course
- The expense of making the property feel like 'home'!!
What can I afford?
Mortgage, Protect & Insure advisers will help you to assess what is realistic and affordable - we accept this is part of our responsibility to you. Your 1st home should be a great experience that lasts long into the future.
To give yourself an idea of how much you can afford have a look at our mortgage calculator, and then do a really 'adult' thing . . . . . write out a budget, what have I got coming in and what will I have going out?
What's the right mortgage?
That's what our mortgage advisers are for!
Having assessed what deposit is available, and what the costs migt be we will discuss your thoughts, your concerns, and your priorities. Only then will we make a recommendation, whether that's a: -
- A 'fixed' rate loan;
- A 'discount', or maybe even a 'tracker' rate mortgage;
- A 'cashback';
- A 'guarantor'; or
- A 'no fees' mortgage.
Mortgage, Protect & Insure will search the whole of the market - and, despite what you read in the press there's still many mortgages to choose from. We will often provide you with an Agreement in Principle, an initial indication from a lender to say how much they would lend you.
You can then go shopping!!!
What's the process I'm about to follow?
Making an Offer
Great news - as a 1st time buyer you're in a great position to control what's happening!! With no property to sell, nothing happens until you're ready to buy, so use this 'power' and hold out for they very best price!
No one is sure just how far property prices will fall, but now is certainly the time to negotiate and be prepared to make what might, in recent years have been considered a 'silly' offer - not any more!!
Estate agents face difficult times, but that isn't your worry, and maybe they've had it too easy for too long. If you can get the house you want, at a 'knock down' price you're happy with - then now might be a great time to buy!!
Applying for your mortgage
We will guide you through this too!! Keeping you informed of progress and helping to make the whole process headache and hassle free!
Getting a survey
What survey you get done depends alot on the type of property you're thinking of buying. They range from a relatively cheap and cheerful Basic Report (is the property worth it, a Homebuyers Report, through to a Full Structural Survey (the most expensive and comprehensive - is it a renovation project you're taking on?!?).
The outcome of the survey is of interest to both you and the lender. How much will they offer to lend you on this property? Lenders are certainly more cautious in their current valuations, and may provide ANOTHER opportunity for you to further negotiate on the price!
Exchange and Completion
Whilst all this has been going on, your solicitor will have been doing his bit!
Once you have recived the lender's mortgage offer your solicitor will be guiding you towards exchanging contracts. This is when the purchase becomes legally binding - so make sure you read the contract and get the answers to ALL of your questions.
You will need to pay your deposit and sign the contracts, this is also a good time to start your home insurance policy (have a look at our Insurance section above).
It's now down to your solicitor to apply for the money (from the lender) and set a completion date - the day you can pick up the keys, the champagne flows and the fun begins!!!
Your home may be repossessed if you do not keep up repayments on your mortgage.
For mortgage advice you can choose how we are paid: -
- No fee. We will receive commission from the lender when your mortgage completes.
Or
- A fee. A fee of typically £580 payable on completion of your mortgage. Any commission received from the lender will be refunded to you.
Or
- A combination of a fee & commission. A fee of typically £280 payable on completion of your mortgage In addition we may receive commission from the lender.
For further advice . . . . .
