First-time Buyer Mortgages
If you are looking for advice about first-time buyer mortgages, we can help.
It is exciting to take your first step onto the property ladder, but if you are not well informed, the process might become daunting. We believe that everyone has the right to access free impartial mortgage advice.
We are Edinburgh's first choice for first-time buyers. Our team of independent mortgage advisers are equipped with the expertise and experience to walk you through the journey of getting your first property.
Our team will mathematically determine the ideal amount you need to borrow and the total cost of the entire project. They will also take you through the whole buying process. To ensure zero heavy lifting for you, we will do the paperwork on your behalf.
The great thing about us is that the services we offer are absolutely impartial; we will not recommend a particular mortgage if it is not the best match for you. Get in touch by phone, online, or arrange a meeting in our office in central Edinburgh and see how we can help you move into your first home.
How does a mortgage work for first-time buyers?
In the process of a mortgage application, the lender will evaluate your affordability by checking your annual salary and other income that you get. They must also check all your expenses, such as credit card and loan debts, childcare, household bills, general living cost, and travel.
Your credit history will also be checked by the lender to find out whether you are a trustworthy borrower and use this information to decide the right amount for you to borrow.
The mortgage providers will always have an optimum loan-to-value- LTV they are ready to offer you. This is the entire amount of loan you can be issued with as the percentage of the property value.
What is a First-Time Buyer?
A first-time buyer is someone who has never their own house before, or someone who rents a house, but doesn't have a mortgage.
This could be for many reasons, such as age, financial situation, or they just haven't found the property of their dreams.
However, there are many first-time buyer mortgage schemes so that they can receive the help and support they need to get onto the housing ladder.
There is a guide to these schemes on our website, so please have a read today, and contact us if you have any questions.
How much deposit do I need to buy a house?
It is advisable to at least save for 5% to 20% of the entire cost of the home. For instance, if you intend to buy a home worth £150,000, you must save at least £7,500. If you save more, you will gain access to cheaper mortgages available on the market.
However, with the Government Help to Buy Schemes, it is easy to save up more in a quicker amount of time. This is because the Government adds an extra 25% onto the amount of money you have saved when you are ready to buy your first home.
If you are a first time buyer, you may also qualify for the help to buy scheme.
How Does the Mortgage Process Work?
When you take out a mortgage from the bank, you are essentially borrowing the money to purchase the house in full; then you pay the bank back in monthly instalments.
If you can't keep up repayments every month, then your home may be repossessed. Before you buy your home, you must send an application to a registered mortgage adviser who will check your financial situation, and give you the best next step to take.
Do I Need a Deposit for a Mortgage?
Most mortgage providers require a deposit of at least 5% of the total value of the property. However, the more money you can save to go towards the deposit for your new property, the better chance you have of getting a more favourable interest rate agreement.
There are many schemes available to first-time buyers to help them save for their deposit. This includes the Help to Buy ISA scheme, where the Government adds 25% of your savings to the your total. This total is set to a maximum amount, which can be further discussed with a registered mortgage adviser.
How Much Can I Borrow for my Mortgage?
This will depend on your income, your contracted hours of work, how many years you want the mortgage repayments to last, how many people will be living in the home and many other factors.
To answer this question precisely, you will have to speak to a mortgage adviser and professional lenders who will give you an idea of how much you'll be able to borrow.
Can I get a Buy-to-Let Mortgage as a First-Time Buyer?
It is definitely possible for a first-time buyer to use the Buy-to-Let mortgage scheme; however, there are a number of required factors that need to be considered.
The deposit is usually higher, and the mortgage interest rate may also be higher than it would for a residential property. Please speak to us if you are a first-time buyer and interested in getting a Buy-to-let mortgage.
How is the Interest Rate on a Mortgage Calculated?
Mortgage interest rates are based on the Bank of England base rate. Different rates of interest are determined by the mortgage lender, based on a number of factors.
For example, the percentage deposit, the credit rating of the customer and what type of mortgage is required. Contact us with your individual needs and requirements, and we can provide you with the details.
Contact our Mortgage Advisors
Lothian Mortgage Service is based in Edinburgh and the West Lothians, in Scotland. It is our job to help you find the best deal for your circumstances, whether it is your first home, or you are an existing homeowner.
If you would like to find out more information, please search through our website or contact us today.
You can either call us on 0131 212 5006 or send us an email using the contact form below.
One of our mortgage advisers will be able to provide you with the advice you need, answer any questions, or offer a free consultation with no obligations.