We're here to help
Buying your first property throws up many emotions; it's very exciting but can at the same time seem like a daunting task. The reality is that it can be a very simple transaction with the right help.
The LIFT-Mortgages team have plenty of experience when it comes to helping first-time buyers get on the property ladder. There are many factors to consider before you find the right mortgage for your circumstances; our team can help you work through the process and find the best solution and rate.
Why choose LIFT-Mortgages?
The key things you need to know when buying your first home:
How much can I borrow?
This depends on both your income and your outgoings. Lenders look at the costs of your commitments such as credit cards, loans, school fees and child care costs. Once a lender has deducted your annualised outgoings from your income, you are left with a “true income” figure. Typically it’s about 4.5 times your true annual income figure.
How much deposit do I need as a first-time buyer?
Different lenders require different amounts. The minimum in the market currently for a first-time buyer mortgage is 5% of the purchase price. Each additional 5% you can put down against the property will help reduce the interest rate to borrow the money.
Are there any government incentives for first-time buyers?
Several government schemes can help you buy a home. These include Help to Buy, Right to Buy and Shared Ownership. If you are hoping to use one of these schemes, do your research to see if you are eligible.
How do I get an agreement in principle?
If you’re ready to start viewings, your broker can arrange an agreement in principle (AIP). An AIP means giving the lender some personal detail and asking them if they would provisionally lend to you. These agreements are typically valid for 60/90 days.
What other costs are involved?
You will need money set aside to cover legal work, the survey and stamp duty*. You should also keep back an amount of cash readily available to cover everyday emergencies when you move in. *First-time buyers only pay stamp duty on properties over £300,000.
What are the different types of home surveys?
There are four main types of survey: A valuation survey, a condition report, a homebuyer report and a full structural survey. A valuation survey determines whether the property you want to buy is worth the amount you have agreed to pay for it. We would recommend investing in a homebuyer report to get a more detailed review of the property before buying.