First Time Buyers

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First Time Buyer Mortgage - what you need to know

Buying your first home or property is an exciting step for any individual or family. However, it is undeniable that the process of getting an agreement in principle (AIP), mortgage offer and understanding the implications of this choice is neither easy nor quick. Indeed, mortgages are not automatically granted, and the assessment takes place on a case to case basis. 

So many factors can influence how likely you are to obtain a first time buyer mortgage, including your salary, credit score, employment status, age and property type. Here are some of the questions that first-time buyers will have to deal with at some point!

What Is a First-Time Buyer?

If you are buying your first residence, then you are a first time buyer. It is  however, important to note that you can be a “first-time buyer” more than one time in your life.

First-time homebuyers can benefit from certain government schemes that might make it easier for you to buy a home and obtain a mortgage.

How Is the Process Different for First Time Buyer Mortgages?

First-time buyers can leverage some privileges offered by the government. Additionally, certain mortgage types are specifically designed for first-time buyers. 

Generally, if you are a first-time buyer, you will need to understand how much you have saved up and what your deposit is. You will then need to check whether you can get a mortgage. This will give you an idea of what mortgage repayments are best for you and what your monthly payment is likely to be. 

How Much Can an FTB Borrow?

The mortgage deal you can obtain will depend on many factors. Firstly, the deposit you have put down for your home will determine how much more you need to borrow. Naturally, the larger your deposit is, the less money you will need to borrow, and you can even obtain access to better mortgage rates.

The amount you can borrow is then determined by the lender, who will assess your suitability. During the audit, your salary, properties, and assets will be compared with expenditures, debt, and credit score. When partnering with a mortgage provider to obtain this help, they will have an LTV (loan-to-value) ready, which is the maximum offer and the highest Mortgage you can get.

What Is an Agreement in Principle?

An Agreement in Principle is an estimation of what you will be able to borrow without having to go through with a full credit check. This can give you an idea of the value of the property to buy – so you can start looking for your home while the Mortgage application is being processed.

How Do I Know What My Credit Score Is?

You can check your credit score through multiple credit referencing agencies. Below is a link to Check My File.

Can I Improve My Credit if looking for First Time Buyer Mortgages?

Improving our credit score is something that we all strive toward. While it is not easy, you can improve yours by paying your bills on time, repaying your debt, keeping your credit card balance low, keeping unused credit cards open, regularly checking your credit report and ensuring that there are no inaccuracies.

What Help Is Available for First Time Buyer Mortgage?

There are several schemes and initiatives that can help you buy your first home without compromising your finances. These include:

What Are Other Fees Involved When Buying a House?

Buying a home can be expensive, but there are also other associated costs that can significantly increase the overall cost you will need to pay. 

How Do You Go About Arranging a First-Time Buyer Mortgage?

Getting in touch with us and let us help you gain access to the right mortgage for you. 

If you are a first-time buyer, doing it all yourself is not recommended!

Your home may be repossessed if you do not keep up repayments on your mortgage

Why Matrix Mortgages

Click here to access your credit report

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