First Time Buyers Advice Manchester | Worthy Mortgages LTD
Let our Experts Help you Find a GREAT mortgage with a low Rate
Buying your first home can seem like a daunting experience, but Worthy Mortgages are here to hold your hand every step of the way. Our aim is to take you from dreaming your own home to being handed the keys in a very fluid and open way. We will try our best to take as much stress away from you and make the house buying process seem like a piece of cake. No question is a silly question, and at Worthy Mortgages we have the wealth of experience to ensure we get the best deal for you every time.
Agreement in Principle (AIP)
In short, this is an agreement from a lender to show that they are willing to let you borrow a certain amount of funds to secure your ideal property.
A lot of estate agents do request that you have an agreement in principle in place before they will even let you view a property, so it is a key part of the house buying process.
An agreement in principle prevents you from viewing properties that may be beyond your budget allowances and also ensures that when you find the right house, you are able to secure that property confidently in the knowledge that this definitely fits all of your requirements, rather than finding that you cannot secure a mortgage after falling in love with a house and being disappointed.
At Worthy Mortgages we will ensure that we get the best deal for you every time, so that when you come to put an offer in on a property, you know that you are getting a product that is best suited to your circumstances.
Do I need to put down any deposit?
As a first-time buyer, the amount that you need to put down as a deposit on a property often has a lot of conflicting information. Many people believe you need at least 10% to secure a mortgage, with some even believing that 20% is the minimum standard. We are here to say that there are many options when it comes to funding on your property. There are some lenders that will lend 100% of the property value with some help from family members in the background and a large number of lenders are now offering 95% mortgages to those with exemplary credit ratings, so if you do have a smaller deposit it may still be worth having a discussion to see what the best plan of action is moving forwards.
How much can I borrow?
This is always the most asked question and frustratingly there is no cut and dry answer to it. The exact amount that you are able to borrow completely depends on your individual circumstances. The amount of income always plays a huge part in determining this, how many applicants there are, whether there are any dependants and also your credit commitments and credit ratings all dictate who will look at the case for you, and what sort of income multiples will be available.
Here at Worthy Mortgages we are able to look at a large range of lenders and determine how much they will be able to lend to you and also how affordable it is to you in the long run. This will enable you to find a property that suits your lifestyle and budgetary needs, ensuring that you are happy moving forwards.
You can check your credit score free by going into our Knowledge & Resources page.
Is any help available for first time buyers?
One of the first things that the government introduced to try and assist first time buyers was the help to buy ISA. This savings scheme is tax free and allows you to put away up to £200 a month into savings to be used towards a house deposit. This has since been replaced by the lifetime ISA, which is a bit more flexible, as it allow you to use the funds for either a house deposit on your first property or to use towards your pension in retirement. Both schemes allow you to put the same amount away tax free every month, and when you come to withdraw the funds for one of these specific purposes, the government will top up the amount by 25%, so it’s a very savvy way of boosting your savings with relatively little hassle. In order to open a lifetime ISA, you will need to be over 18 and under 40 years old.
The government have also introduced some affordable housing schemes, which aims to help you get on the housing ladder more quickly than by using a traditional purchase. These include the help to buy scheme, shared ownership scheme and the new mortgage indeminity scheme which allows you to only put down a 5% deposit to purchase a new home, if your credit rating is good enough to support this.
The link below will give you access to check your credit report and see whether there are any challenges in your way for you to achieve your goal of home ownership at this moment in time.
What fees are involved when buying a home?
Stamp duty
When buying a property, you are highly likely to incur some cost for stamp duty land tax. The exact amount payable will depend on the property value and whether you own any other properties at the time of purchase. First time buyers are stamp duty tax exempt on any property up to the value of £300,000 but will pay normal duty rates beyond this purchase price.
Mortgage arrangement fees
These will depend on what mortgage product is applied for, and there are often products which do not charge for arrangement fees at all. Your mortgage adviser will be able to recommend the most suitable product to suit your particular needs and the costs will be disclosed at that time.
Valuation fees
The mortgage lenders have to carry out an independent valuation on the property to ensure that is suitable security for them to lend on. A lot of mortgage lenders do carry these out free of charge, but there are lenders that may need to charge for this within the application process.
Legal fees
When purchasing or re-mortgaging a property, a conveyancer will be required to carry out all legal work in the background. The exact cost for this will differ from one solicitor firm to another and on what work is required within the process.
Broker fees
The broker fee you are charged depends on your exact circumstances. Our typical broker fee is £495. Up until the 31st March 2022 all advice will be fee free for NHS staff and emergency personnel to say thank you for your services to the nation during this testing time.
How can Worthy Mortgages help first time buyers?
We have access to an unrestricted range of lenders, meaning that whilst you spend the time planning your new furnishings and the house warming party, we can search over 20,000 deals to ensure that you get the one that’s most suitable for your circumstances. We take our time getting to know you and your overall goals, so that we don’t waste your valuable time finding something that isn’t right for you.
We will talk you through all the different factors that come into buying a home, whether that be your credit score, the amount of deposit required, and we can also recommend solicitors and surveyors, to ensure that your ride is as smooth as possible to becoming a homeowner. We offer a bespoke service and are available to speak to our clients whenever suits them best, whether this be early morning, late evenings and weekends if necessary.
The initial consultation with us is totally free of charge so please feel free to give us a call and see what we can do for you!
* We’re currently offering a fee free mortgage service to all NHS staff and Emergency Personnel to say thankyou for all your hard work and sacrifice during this difficult time. Subject to remove this at any time but ongoing until 31st March 2022.
We also offer free review of your protection requirements.
Get in touch for an initial free, no obligation chat with me about how we might be able to help.
VISIT US:
29 Fairview Drive
Adlington
Chorley
PR6 9SB
CONTACT US:
07999752850
OPEN HOURS
M-F: 9am – 5pm
Sat: 10am – 5pm
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