This part of our Guide for first time buyers covers the basics of getting a first time buyer mortgage:
what effects how much you can borrow and how a mortgage works.
How Much Can I Borrow?
Everybody's circumstances are different, which is why lenders assess each application individually.
How much you can borrow usually depends on:
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Your income and outgoings
Your credit history
Whether you are able or prepared to make changes to your lifestyle that may reduce your outgoings
How much deposit you have
How to Get a First Time Buyer Mortgage
You will need to find out how much you can borrow before making an offer on a property. Some
lenders will work out how much they will lend you before you find a property – this is called an
Agreement in Principle. This will help you know the maximum offer you can make on a property
and will also speed up the mortgage process.
How Long Will My First Time Buyer Mortgage Last?
This is known as the mortgage term. Mortgages usually have a term of between 5 to 40 years. A
mortgage should normally be for the shortest term you can afford as this keeps the overall cost
down. A longer than necessary term means you will pay more interest.
Should you move house in the future then your current mortgage will be repaid and a new mortgage
will be arranged which may have different terms and conditions with a new lender.
Some lenders will allow you to ‘port’ your mortgage rate. This option lets you transfer the interest rate
and all the existing terms and conditions of your current mortgage to your new home and may also
allow you to add-on to the mortgage if you require a larger mortgage amount.
How We Can Help You
Peter Lewis Associates are a trading name of McRobieAdams who are appointed representatives of
Andrews Estate Agents Limited and are able to offer professional mortgage advice from a
comprehensive range of lenders across the mortgage market. We also have access to exclusive
mortgage deals through the Legal & General Mortgage Club. These can often be from top lenders
such as Halifax and Santander, as well as other more specialist and regional lenders.
New lenders are often added to their panel which other advisers may not have access to. If you
require any further information then please call us 01295 277500.
Make sure you can afford your mortgage. If you fall behind with the payments, you could lose your
home.
Solicitors and Fees
It is important to get a good solicitor who deals with all the legal parts of your purchase. The solicitor
will liaise with both the lender and the seller’s solicitor.
The solicitor will carry out searches to find if there are any rights of way across your property, or any
proposed developments, which may affect the property you are buying.
If your seller has asked for a small deposit to show your commitment to buying the property your
solicitor will hold this in a special account where it will gain interest until the sale. Your solicitor will
also hold your mortgage deposit on the property. This is the difference between the mortgage loan
and the purchase price of the property.