If you’re thinking about buying your first home you’re probably finding the whole process of choosing the right mortgage and actually buying your ideal home rather daunting? So what do you need to know to get on to the first rung of the property ladder?
The first step is to download our first time buyers guide and contact us and we will advise you on the mortgage options available to you.
In the meantime we’ve outlined below some background information on mortgages for first time buyers that we hope you’ll find useful.
How much can you borrow?
The amount of mortgage you can get depends on your income.
Income multiples do vary. As a rough guide, a typical multiple is four times your income. This figure could be higher or lower depending upon your individual circumstances and different lenders’ criteria. Some lenders do not use income multiples at all and will lend based on affordability.
Once you add to this the amount that you can afford to pay as a deposit, you have the amount you can pay for your first property.
Some lenders offer very good deals for first time buyers, so it always worth asking us to research the market on your behalf.
Any other costs?
It is also worth remembering the additional costs, on top of your deposit and mortgage that you will be expected to pay.
For information about stamp duty visit https://www.gov.uk/stamp-duty-land-tax
A calculator is available on HMRC’s website which calculates the SDLT due for first time buyers who are eligible to claim the relief:
https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax
Higher rates for additional properties. You'll usually have to pay 3% on top of the normal SDLT rates if buying a new residential property means you will own more than one.
Plus you will have to pay for the survey and the valuation of the property, and solicitor’s fees.
You may also have to pay an arrangement fee for the mortgage and in some cases a Higher Lending Charge - which is insurance for the lender for you defaulting on your payments when your property is worth less than the loan.
Give us a call on 07771 916374 for more information or alternatively complete our contact form and we'll contact you.
SWIFS is a trading name of Kevin Langshaw who is an Appointed Representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under 305330 in respect of mortgage, insurance and consumer credit mediation activities only.
We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent Ombudsman. Our advice is covered under the Financial Ombudsman Service (https://www.financial-ombudsman.org.uk/consumer/complaints.htm).
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.