Buying your first home should be one of the most exciting times of you life, but it can be daunting. Preparation is key, and once you’ve had a read of this guide you should feel more confident (and excited) about the road ahead. We also offer free consultations for First Time Buyers where one of our friendly mortgage advisors will answer all your questions and help you prepare for buying your dream home! You can book your FREE consultation here.
The Process Of Buying A House
The first thing to do is to speak to a mortgage advisor – not only will they explain the process in detail but they’ll also work out how much you’ll be able to borrow, so it’s important you do this before looking for properties.
We’ve outlined the key stages of buying a house below, but click here for a more detailed look at the house buying process.
- Speak to a mortgage broker and get a Mortgage in Principle
- Speak to an estate agent and view properties
- Make an offer on a property you love
- Instruct a solicitor to carry out searches and prepare contracts
- Organise for a survey to be carried out on the property
- Exchange contracts with the seller (via your solicitor)
- Prepare to collect keys and move in on your completion date!
How Much Deposit Do I Need To Buy A House?
The minimum deposit you’ll need to raise is 5% of the value of the property, so if you’re buying a £200,000 pound property you would need at least £10,000. People generally try to aim for a 10-20% deposit if possible, because a larger deposit means you’ll have access to a wider range of mortgage products and you’ll usually be able to get a lower interest rate.
What Fees Can I Expect When Buying A House?
Your deposit will usually be the single biggest cost of buying a house, along with the ongoing monthly repayments. But there are other fees that you should be prepared to cover which can vary greatly from case to case – your mortgage advisor will be able to give you an idea of how much each one will cost during your FREE consultation so you can start budgeting accordingly. We’ve listed all the fees involved with buying a property below, but the good news is that not all of these apply to every case, so be sure to speak to an advisor as soon as possible to find out which fees apply to you and how much each one will cost.
- Valuation Fee
- Survey Fee
- Solicitor Fee
- Mortgage Broker Fee
- Mortgage Product Fee
- Stamp Duty
- Building & Contents Insurance
- Life Insurance
How Do I Find The Right First Time Buyer Mortgage?
There are hundreds of mortgage products out there and each lender has their own criteria, meaning you could be offered vastly different borrowing limits and interest rates. This is one of the reasons it’s important to speak to an impartial mortgage broker, as they have access to all products (including exclusive deals) and they understand the criteria of each lender – so they’ll be able to find you a mortgage that suits your needs perfectly.
Your advisor will apply for your mortgage on your behalf, meaning you don’t have to arrange multiple mortgage meetings with different providers. They’ll also guide you through the process and liaise with your lender, estate agent, and solicitor to ensure everything runs smoothly.
Will I Be Accepted For A First Time Buyer Mortgage?
You will have to pass stringent affordability and credit checks when applying for your mortgage, as lenders need to be confident you’ll be able to afford the repayments throughout the term of your mortgage.
If you’re unlikely to qualify for a standard mortgage or you’re having difficulty raising a deposit, your advisor may suggest using a guarantor or applying for a government scheme such as the ‘Mortgage Guarantee Scheme’, ‘Help to Buy Scheme’ or a ‘Shared Ownership’ plan. Being rejected for a mortgage can damage your credit score, so it’s important you only apply for one that you’re likely to be accepted for. Your mortgage broker will be able to advise you on which lenders will accept your application based on your circumstances, thereby protecting your credit score, saving time and hassle, and increasing your chances of success.
The Bottom Line
Buying your first home is a fun and exciting journey, but it’s crucial you fully prepare yourself and make the right decisions along the way. Speaking to an impartial mortgage advisor at the beginning will give you the confidence and knowledge you need to get going.
We’re impartial mortgage advisors with over 30 years’ experience dealing with First Time Buyer mortgages. As the criteria for each lender varies so widely, it’s important you seek the right advice before applying to make sure you find a deal that suits your needs, and to protect your credit score. Our friendly team will guide you through the process and liaise with your lender, estate agent, and solicitors to ensure everything runs smoothly.
Book in for your FREE consultation to get going quickly – this can be done remotely via phone or video call if you’d prefer. We look forward to helping you!
