Looking to buy your first home?

Sometimes the road from falling in love with a house to making it your home can seem full of potholes, so we’re holding a ‘Buying Your First Home’ webinar at the end of this month where first time buyers can chat to us face to face and ask us any questions they might have.

In the webinar, we’ll be looking at Shared Ownership and the government’s Help to Buy scheme, how you can help relatives by releasing money from your own home, as well as the different kinds of mortgages available.

To register your interest, click on the email link and type ‘I am interested’ and we’ll get back to you with all the details enquiry@thefinanceroome.co.uk 

How much deposit will you need?

With the recent introduction of more 95% mortgages, you could need as little as 5% of the value of the home you’d like to buy, however if you’re able to save up to 10% you’ll have a wider range of options to choose from. The bigger the deposit the better choice of mortgage lenders. A Help to Buy or Lifetime ISA could enable you to claim a 25% top-up from the government. There are also some schemes to help such as Shared Ownership and Help to Buy where only as little as 5% deposit may be required.

For more information about these schemes, we’re always happy to chat on the phone. Alternatively we’ll be providing loads more information in our webinar at the end of the month.

Can Friends Or Family Help Towards A Deposit?
Friends or family can gift money towards a deposit but it MUST be an unconditional gift and they may be required to sign a disclaimer saying there are no conditions attached. It may be that parents and even grandparents are hoping to release some equity from their own home to help with the purchase.

Equity Release
Equity release or a Lifetime Mortgage is a way of unlocking tax-free cash from the value of your home, without having to move out. The money can be used to top up a retirement pot, for renovations, or to help family with a deposit. The loan and interest is repaid at the end of the mortgage term using the proceeds of your house’s sale when you die or move into long-term care. To find out more, or to download a guide from the Equity Release council, visit our website 

How much can you borrow?

The amount you can borrow will depend upon your income, your outgoings and the value of the property you want to buy.  Our mortgage advisers will be able to give an exact figure. We search 1000’s of mortgage deals from across 100’s of lenders, so whatever your occupation, employed or self-employed, sole trader, limited company director or a contractor, we can find the best rate with the best lender.

We’ll explain how mortgages work and the various options available –  whether it’s the security of a fixed interest rate, or a variable rate where the amount paid could fluctuate each month.

There is help available for first time buyers, like the Government’s new Help to Buy Scheme which is set to run from April 2021 to March 2023. It is restricted to first-time buyers and includes regional property price caps to ensure the scheme reaches people who need it most. Under the scheme, the government will lend buyers up to 20% of the cost of a newly built home, and up to 40% in London.

Before applying for a mortgage, we will need to review any credit history e.g. late payments, CCJs, Default Notices and Payday loans, all of which may affect your ability to borrow. There’s a useful checklist included in our First Time Buyers’ Guide which gives a list of all the documentation first time buyers will need to supply.

Apply for a Mortgage Agreement in Principle
We can help first time buyers apply for a Mortgage Agreement in Principle (AIP).This is a confirmation from a lender that they have agreed, in principle, to lend a certain amount. It can make them a more attractive buyer as it shows the seller they can afford the property and have a mortgage agreed. The AIP doesn’t have to come from their own bank or building society. We can work with them to find the right lender with the best deal and take them through the whole process.

Don’t Forget About Insurance

Whether you’re a first time buyer or you already own your own home, the last thing on your mind is probably insurance, but when you think about the time and effort it’s taken to step through your front door, isn’t it worth thinking about protecting your home against the unexpected? We can help you find the best deals whether you’re looking for buildings, contents cover or both.

Protecting yourself against being unable to pay the mortgage has also got to be top of the list when it comes to buying your first home. When you’re ill or injured and can’t work, the last thing you need is stress about paying the mortgage and other monthly bills. Income Protection insurance pays a proportion of your lost earnings so you can concentrate on looking after your health and stop worrying about making ends meet. Critical Illness cover pays out a tax-free lump sum that you can use however you like – whether it’s to help cover health-related costs, monthly expenses, or lost income while you get better.

Why not talk to our team about the different insurance options and let them search the market for the insurance cover that fits your needs and your budget.