If you have never owned a home before then you will need to arrange a First Time Buyer mortgage. This is so you can get access to a mortgage to buy a house without the need to put down a large deposit, although you can put down as large a deposit as you wish if you are able to of course.
By using a Mortgage Broker like McGregor Ross Financial Solutions, the firm will look at a number of criteria including the applicant’s income, existing borrowing and their credit score, which will help them determine the loan’s terms and conditions as well as the amount that can be borrowed.
What types of mortgages are available for First Time Buyers?
There are many different types of mortgage products available for First Time Buyers but one of the most popular types of products are fixed-rate mortgages, which simply means that the interest rate, and therefore your mortgage payment is fixed and will remain the same for a predetermined amount of time, typically 2 or 5 years but again these lengths can vary. Therefore because the borrower is aware that their monthly payments won’t alter throughout this specified term, budgeting is easier and this can really appeal to a lot of people, especially First Time Buyers.
Criteria for Borrowing
The amount that can be borrowed from a mortgage lender will be determined by the applicant’s income, existing borrowing (if applicable), credit history, and property value plus other factors. The maximum mortgage amount is normally determined by the lender using a multiple of the applicant’s income plus taking into account any existing credit commitments and the amount of deposit they are putting in.
Some of the main criteria you will have to meet as a borrower are listed below.
- Be older than 18 years old
- Have a 5% deposit as a minimum (although there are schemes available that can assist if a 5% deposit isn’t available)
- Be able to prove income whether you are employed or self-employed
- Show evidence of general expenditure usually by providing bank statements
Are you ready for more information?
If you feel that you have all the necessary criteria to make a mortgage application, or are thinking about applying but just want to speak to a professional broker first? Please click here to contact our team. Alternatively, you can just book an appointment to discuss your options at a time that suits you best.