First Time Buyer

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 contact us and we will advise you on the mortgage options available to you.

In the meantime we’ve outlined below most 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. Most 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.

Most 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 example, you may have to pay stamp duty if the property you are purchasing costs over £125,000. Please check out our jargon buster tab for the latest stamp duty bands and rates.

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 most 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.

Butler Mortgages | 12 Maristow Street | Westbury | Wiltshire | BA13 3DN