First Time Buyer Mortgage Advice
in Leamington Spa & Warwickshire
Getting on the property ladder marks a significant achievement, and when it comes to mortgages it can feel like there's a huge amount of information to understand. There are so many different factors that require careful consideration, and when combined with the excitement of purchasing your own home, it's easy to become overwhelmed. But don’t worry, that’s where we come in.
We support first time buyers through the entire homebuying journey – ensuring you understand the process, establish your property budget, locate a suitable home and secure a favourable mortgage deal.
What is a first time buyer?
A first time buyer refers to someone embarking on purchasing their very first property, anywhere in the world. You have complete freedom to select from various mortgage options, such as fixed-rate, variable rate, repayment, or interest-only mortgages. While the standard mortgage duration is typically 25 years, there's flexibility for shorter or more extended terms depending on each person’s individual circumstances.
Every mortgage type comes with its own advantages and disadvantages. A proficient mortgage adviser will assist you in delving into these alternatives.
How much can I borrow as a first time buyer?
The first step in getting on the property ladder is to find out how much you can borrow. This will allow you to establish your budget and refine your property search.
Typically, you can secure a loan of approximately 4.5 times the combined incomes across the application, alongside the requirement of providing a cash deposit. However, each lender has their own unique affordability calculators, meaning some lenders will allow you to borrow more than others. There are also certain mortgage schemes on the market with enhanced lending multiples, which may allow you to borrow even more. This will of course depend on the levels of committed expenditure (credit cards and loans) people have.
With house prices rising year on year, entering the property market can prove challenging, prompting the Government to introduce various initiatives to support first time buyers. More information on some of the schemes available can be found on the Own Your Home website.
How much deposit will I need?
Putting down a cash deposit is an important step in the home buying process. While certain mortgages are available with as little as a 5% deposit, our suggestion is to strive for a minimum of 10% if possible.
A larger deposit directly correlates to reduced monthly mortgage payments, and opting for a higher deposit amount generally provides access to a greater range of mortgage lenders and improved interest rates.
What lender criteria do I need to meet?
Each mortgage lender has their own unique policies and criteria that need to be met by each individual (and property) in order for the mortgage to be approved. Common requirements include maintaining a favourable credit history, sustaining a specific duration of employment, managing a reasonable level of debt, and fulfilling the minimum deposit requirement. However, there are still options out there for people whose circumstances may be considered more complex.
Working with a mortgage adviser offers a notable benefit, as we assist in streamlining your mortgage options, ensuring alignment with all the established criteria to enhance your chances of mortgage success.
What impact does my credit score have on obtaining a mortgage?
Despite what many people think, mortgage lenders are not too focused your credit score. What they are concerned about is the actual contents of your credit report, looking at your overall credit history. The assessment of your credit report will help the lender determine how reliable you might be in repaying the mortgage each month. A poor credit history doesn’t usually stop you being able to buy a property, although it often means higher mortgage rates.
Information, such as late payments, can stay on your credit report for 6 years. However, their impact will likely reduce as the record ages. It may not happen overnight, but managing your money more effectively can make a big difference to your credit profile and overall financial health. This will help you when you’re ready to apply for a mortgage or any credit in fact.
Some common methods of improving your credit profile are to keep your current account in credit, make regular payments on time, keep your credit utilisation low, registering on the electoral role and checking for any mistakes on your credit file.
It's easy to obtain a free copy of your credit file online – Check My File. If you work with us, we will review your credit report as part of our free introductory meeting.
What fees are associated with buying a house?
In addition to your initial deposit, there are multiple other fees and costs to account for when purchasing a house. The good news is that first time buyers are exempt from Stamp Duty, a property tax, for properties valued up to £425,000. Most mortgages will also entail a product fee, which can either be paid on application or added onto the loan, and possibly a valuation and application fee. You will also need to budget for legal fees, searches, and a property survey is highly recommended.
Another essential area to consider is your mortgage protection, including life insurance, critical illness cover, income protection and home insurance, some of which are compulsory under your mortgage contract.
Looking for first time buyer mortgage advice
in Leamington Spa & Warwickshire?
Jack Bewick offers tailored first time buyer mortgage advice specialising across Warwick, Leamington Spa, Kenilworth, Stratford upon Avon, Coventry & Warwickshire, Lutterworth & Leicestershire areas.
Offering expert independent mortgage advice on:
First Time Buyer Mortgages
Home Mover Mortgages
Buy To Let Mortgages
Limited Company Mortgages
Affordable Housing Mortgages (Shared Ownership)
Self Employed Mortgages
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Some of the mortgage providers we work with...
Why work with Jack Bewick?
A leading 'whole of market' mortgage adviser in Warwickshire, with access to the most competitive products on the market.
Honest, professional and independent financial advice tailored to suit your personal circumstances.
Friendly advice to help you navigate financial challenges.
Expert Tailored Advice
Mortgage & Protection Services
Whole of Market Advice
Professional & Friendly Service
The Most Competitive Mortgage Deals
"Jack was highly recommended to us when we started our house buying journey, and it was the easiest decision we made throughout the whole process. He was extremely helpful, knowledgeable and had a genuine desire to help us with all of our queries and was dedicated to getting us the best deal on the market at the time.
We couldn’t ask for a better Mortgage Adviser. Thank you Jack for everything you have done so far. We really appreciate your hard work and would absolutely recommend you to anyone looking to buy a house."