First-Time Buyer
First-Time Buyer Mortgage
So, you’re ready to buy your first home? Well, this is exceptionally exciting! As a first-time buyer looking to purchase a property, it can feel extremely overwhelming when faced with the house buying process. There are deposits, mortgages, solicitor fees, surveys etc - it can feel like a lot!
But there’s one area which you don’t need to worry about: Your mortgage.
At TW Mortgages, we offer FREE mortgage advice for first-time buyers and can help you through the whole buying process. We’ve helped many across the Southwest get on the property market and we have a stack of brilliant reviews from very happy customers that range from Bristol to Frome!
When it comes to buying a new home, be wary of unnecessary additional fees. Many mortgage brokers do charge a fee for their service, but we do not. We get our payment from whichever lender you complete with - this commission covers our costs so you don’t have to spend a penny for your mortgage advice.
Bonus: It’s always a good idea to be as prepared as possible before beginning your first property purchase. Take the stress out of it by checking out our comprehensive guide to the house buying process which clearly maps out the entire property purchase journey for first-time buyers - read more…
What is a first-time buyer mortgage?
A First-time Buyer mortgage is a mortgage where the buyer is buying a property for their first time. There are benefits with being a First-time Buyer, such as no chain or stamp duty, but the mortgage will still fundamentally be a large secured loan from a bank.
This loan is secured against the property you purchase and you pay back typically over 20 to 30 years, with interest.
Who qualifies as a first-time buyer?
To be a first-time buyer, you must not have owned a property anywhere in the world. You will not be a first-time buyer if you have purchased with another person previously or if you have inherited a house.
If you are buying with a partner and they have purchased before, you will not be classified as a first-time buyer.
What are the benefits of being a First-Time Buyer?
The main benefit of a First-Time Buyer Mortgage is that Stamp Duty Land Tax is waived up to £300,000. At the time of publishing, Stamp Duty has been waived until September 2021 so unfortunately, first time buyers lose the key benefit of their buying status.
However, another great bonus of being a first time buyer is that you won’t be in a chain so will be attractive to sellers. As you aren’t waiting for someone to buy a house from yourself, you’ll be ready to move in as soon as the process completes which is valuable to sellers. They’ll want to move fast and avoid chains so you’ll be an attractive buyer.
How much deposit do I need as a first-time buyer?
You will need to save a deposit that will be at least 10% of the value of your home. The Government has recently announced its intention to reintroduce its 5% mortgage guarantee, due to start in April 2021 and run to December 2022 to help stimulate the housing market and continue to get people onto the property ladder despite the hard times on the economy from COVID.
If you’re after a first-time buyer mortgage but have limited funds, you do still have mortgage options. There are multiple government schemes to aid those who don’t have the finances to buy 100% of a house and various other opportunities that you may qualify for. Please do take a look at the other mortgage options we can assist you with or get in touch - we are a free mortgage advisor who will endeavor to get you the best mortgage for your circumstances.
Are there additional costs for a first-time buyer?
As well as the deposit, there are other outgoings that you’ll need to factor into your finances. You will need to put aside around £2,000 for solicitor fees. You will need a solicitor when it comes to purchasing a property as they deal with a lot of admin and contracts, plus they secure the payment of funds.
You may also need a survey of the property to ensure it’s structurally sound - surveyors can range in costs from around £300 to £1000, depending on the property size. And don’t forget about your home and contents insurance!
When should I start talking to a mortgage advisor about my mortgage?
We highly recommend you start talking to a mortgage advisor for first-time buyer mortgages as early as you can.
It’s key that you know how much you can afford to borrow before you start the house hunt or you may waste time looking at properties that are beyond your affordability. However, you may also find out you can borrow more than you thought! Find out more about when to see a mortgage advisor.
So, are you ready to start talking about mortgages? As TW Mortgages is a completely fee-free mortgage advisor for first-time buyers, come to us and we will let you know everything you’ll need for the entire process, completely free of charge. You can also check out the TW Mortgages guide to the house buying process here.
Please note: Your home may be repossessed if you do not keep up repayments on your mortgage.