A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
It’s usually the case that placing your first foot on the property ladder is the most challenging step of them all. First-time buyers seeking a mortgage can be overwhelmed by different options and confusing terms. As a result, they are more likely to commit to a mortgage that doesn’t work best for them and make costly mistakes.
Thankfully, our mortgage advisers can help you avoid the pitfalls! Elevate Financial Solutions is a financial services provider assisting clients with mortgage advice across London. We have offices in Beckenham and Bromley, and working with clients across London, we advise, search, and secure all types of mortgages, including first time buyer mortgages.
WHAT ARE THE FIRST-TIME BUYER’S MORTGAGE OPTIONS?
First-time buyers should know they have lots of mortgage types to choose from. Each one of them has its advantages and disadvantages, and there is no single mortgage type that is best for everyone. The right kind of mortgage for a first-time buyer will depend on their circumstances.
The most popular types of first-time buyer mortgages are:
- Fixed-rate mortgages
- Tracker mortgages
- Variable-rate mortgages
- SVR mortgages (possibly with a discount period)
- Offset mortgages
With so many mortgage types to pick from before exploring what the market has to offer, it’s no wonder that first-time buyers want expert support. If you’re a first-time buyer, Elevate will help you overcome the difficulty, stress and hurdles when securing your first mortgage.
CONSIDERATIONS FOR FIRST-TIME BUYERS
There is so much to consider when purchasing your first home. Besides understanding mortgage types, you also need to consider how your deposit will affect the terms of a mortgage. Moreover, buyers must consider the other expenses involved with buying a home, such as legal fees and relocation costs.
Elevate can cut through the noise and provide clarity on every aspect of buying your first home. We’re always by your side for support.
Deposit requirements: First-time buyers should be aware of the deposit requirements for different mortgage types. The deposit required for each type of mortgage varies, and our mortgage advisers can provide guidance.
Affordability assessments: At the start of the mortgage process, lenders will conduct an affordability assessment to determine if you can afford the mortgage repayments. Our mortgage advisers can explain how affordability assessments work and the factors that lenders.
Stamp Duty Land Tax (SDLT): First-time buyers may be eligible for SDLT relief on their first property purchase. Our mortgage advisers can explain how SDLT works and help you understand the relief available for first-time buyers.
Conveyancing and legal fees: Buying a home involves various legal fees and costs, such as conveyancing fees, survey fees, and land registry fees. Our mortgage advisers can help you understand the legal process involved in buying a home and provide guidance on the costs involved.
Insurance options: As a first-time buyer, protecting your investment and finances is essential. Our mortgage advisers can explain the different types of insurance available, such as buildings and contents insurance and mortgage protection insurance.
FIRST-TIME BUYER FAQS
What is shared ownership?
Shared ownership is when you buy a percentage of a property (sometimes with a mortgage) and pay rent on the remaining amount. Shared ownership often requires a smaller deposit because you are buying only part of the property. It can be a fantastic opportunity for some first-time buyers, but it should first be discussed with a mortgage advisor.
Could a joint mortgage be right for me?
If two or more people want to buy a property together, they may apply for a joint mortgage. Joint mortgages can be another way to make buying property for the first time more affordable. It is best to discuss the details with a mortgage adviser to understand the benefits and risks involved.
What is loan to value?
Loan to value is a financial term used within the mortgage industry. It expresses a ratio between money loaned and the property’s value.
Freehold Vs Leasehold
A Freehold is when you own the land and the assets on it, such as a property. A Leasehold is when you own a property but do not own the land it is built on. The most common example of this is when you buy a flat in a block of flats.
WHY FIRST-TIME BUYERS SHOULD USE MORTGAGE ADVISERS
First-time buyers should use a whole of the market mortgage service to find the best deal. Using a mortgage broker won’t just help you find the best mortgage deal, but it can help reduce the stress and ensure you do not commit to a mortgage that is not right for you.
CONTACT US FOR MORTGAGE ADVICE
If you're a first-time buyer looking for friendly and professional mortgage advice, look no further than our experienced mortgage broker team based in Bromley and Beckenham.
We understand that the process of buying your first property can be both exciting and overwhelming. That's why we're here to help. Our team of experts is dedicated to providing you with personalised guidance and support every step of the way, ensuring you're equipped with the knowledge and resources you need to make informed decisions about your mortgage.
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