The First Time is Tough - But We're Here To Help
Choosing a mortgage can be more complicated than it sounds, despite what many mortgage advisors will lead you to believe. Rankings change by the second, and the sheer amount of bad advice out there is overwhelming and often misleading.
Signing up for a really high rate in a low rate environment for no good reason can be one of the worst financial mistakes people make in their lives.
Buying a house or flat for first-time buyers requires a lot of research and can become a risky undertaking. That’s where Mortgage Advisors365 comes in.
New to Mortgages?
Mortgage Advisors365 are UK’s leading advisors when it comes to first-time mortgages. With experts who assist the WHOLE way through, you may be surprised how quick and easy it can be! Affordable deals anywhere in the UK!
We help you find not just any property but the one perfect home that meets your needs and that makes sense for your budget.
Talk about getting more for less, and we provide a premium service that’s more affordable than ever before, covering all the benefits of expert advice all at a cost affordable for first-timers. Want peace of mind? This is it.
You’re in safe hands
Because we know how important momentum is with buying property for first-time buyers. And if you change your sentiment about buying a house later down the line when prices rise, we’ll still be here for you when it happens!
At Mortgage Advisors365, all our specialists are highly experienced in all aspects of the process, from taking your quote through to completing your mortgage. They work as a team and offer a complete solution for you. Trust an expert!
The process of getting your first mortgage is broken down into ten phases below:
Step 1: Determine your deposit and the amount you may borrow:
Deposit for First-time Buyers
When purchasing your first home, you will be required to pay a deposit as part of your mortgage. This is applied to the purchase price of the property as well as the amount borrowed.
A larger deposit entitles you to greater interest rates.
As a first-time buyer, you will pay a 5% downpayment.
You’ve probably heard the term ‘loan-to-value’ or ‘LTV’ before. This is the amount of your house that you own outright versus the amount secured by a mortgage.
For example, a £25,000 deposit on a £200,000 house indicates that the deposit is 10% of the purchase price and the loan to value, or LTV, is the remaining 90%.
If your LTV is lower, your interest rate will most likely be lower. This is because smaller loans provide far less risk to mortgage lenders.
How much money can you get?
Before you begin house hunting, you should determine how much you can borrow.
When looking at houses, this will help you narrow down your housing search.
It is also critical to assess how much money you can actually borrow.
You may use one of the numerous mortgage calculators to figure out how much you might be able to borrow. However, you do not need to do this because a free mortgage broker can calculate all of this data for you. Speak with one of our mortgage consultants for free assistance.
After determining how much you may be able to borrow, tally up all of the additional fees associated with the mortgage application and your house transfer.
These expenses include:
- Stamp duty:
As a first-time buyer, you will pay no stamp duty if your purchase price is less than £500,000.
- Fees for appraisals
- Legal fees
- Fees for applications
Step 2: Submit a mortgage in principle (MIP) application:
It is an agreement from a bank or building society to give you a pre-determined mortgage amount to enable you to purchase your first property. This is also known as a decision in principle.”
After your offer on a home is approved, we will be able to begin working on your entire mortgage application.
It is generally advisable to obtain a mortgage in principle.
To determine your mortgage affordability, a broker or lender will examine your income, credit obligations, and other outgoings. We will secure the agreement in principle once you have selected a mortgage package.
In concept, the agreement is not a legal document. The lender may still decline the mortgage on the parameters put out, but it is a valuable indicator of how much you may be able to borrow.
This will give you a better sense of what kinds of residences you might be able to purchase.
Show any realtor documentation of a mortgage loan to demonstrate that you are a serious buyer.
Mortgage Advisors365 can design and supply you with a mortgage in principle within 24 hours. Get in touch with us to find out more. Before applying for a mortgage with a high-street bank or building society, contact us.
Step 3: Start looking for a home:
When you know how much you might be able to borrow, you can start looking for the home you wish to buy.
You should not rush the house-hunting process since it is critical that you select the right home for you. However, it is worth remembering that mortgages typically last between 30 and 90 days. If you haven’t located a property in that time, you will have to reapply.
Step 4: Select the best mortgage for you:
Mortgages of several types are available in the UK. These are some examples:
- Fixed-rate mortgages
- Help to Buy mortgages
- Buy-to-let mortgages
- Capped mortgages
- Small deposit mortgages
- Discounted mortgages
- Offset mortgages
- Tracker mortgages
Step 5: Speak with a conveyancing solicitor.
A conveyancing solicitor will manage the legal issues of purchasing and selling a house.
You should select a solicitor as soon as you accept an offer.
To search for a solicitor:
- Request recommendations from friends and family.
- Check out their online reviews.
- Consult a broker for assistance.
- Your lender may recommend a solicitor, but you are not required to hire them.
Step 6: Submit a mortgage application:
When the time comes to apply for a mortgage, offer your mortgage broker the documentation they need to get the process started.
In addition to your bank statements, they will also want documentation proving your identity, residence, and income.
Documents of this type may include:
- Returns on Taxes
- A driver’s licence
- Letters of appreciation
For further information, don’t hesitate to get in touch with us.
Step 7: Estimates and Surveys
Your lender will want a valuation to ensure that the house’s worth matches what you or the estate agent determined.
This value will be performed by someone with surveying skills. Some lenders will charge you for the appraisal as part of your mortgage payment.
They will determine how much to provide you for your mortgage after the appraisal.
If the lender gives you a mortgage for less than the asking price, you have these options:
- Negotiate with the seller again.
- Look for a different lender.
Step 8: Receiving a Mortgage Offer
You are finally on your way to securing your new house when you receive your mortgage offer. Once you get the deal, it is generally good for 3 to 6 months.
You will be given a mortgage offer after:
- You have finished your mortgage application successfully.
- The valuation report is finished.
If you like the mortgage offer, you can accept and sign it. Your solicitor will next begin the last stage of the purchasing procedure, which includes the exchange of contracts between you and the house seller (vendor).
If your application is officially rejected, your journey is far from done. It is possible that you did not fulfil the lender’s loan conditions.
Step 9: Exchange Contracts of your first home:
This is when you and the house seller finalise the transaction.
Contracts will be exchanged by both your and the seller’s solicitors. All you have to do is sign your name.
Following the exchange of contracts, a date for getting the keys to your new house will be agreed upon. This is known as finishing.
Step 10: Completion and moving into your first house:
Here comes the big part!
You have officially finalised the purchase of your first house! You may now collect your keys and move in on the agreed-upon day.
We’re here for you!
Mortgage Advisors 365 will then look after you and ensure that you remortgage to save money when necessary.