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First Time Buyer Mortgages

First time buyer mortgage

Becoming A First Time Buyer

Rising house prices in recent years have caught the news headlines but there are still plenty of great deals out there for first time buyers. The first small step can seem the hardest but with the right guidance the house of your dreams could be yours sooner than you think. The best mortgage rates are for those able to pay larger deposits but if you can raise just 5% you can get your foot on the first rung of the property ladder.

Your first big decision as a first time buyer is whether to save up to pay a larger deposit and get access to the better mortgage rates or go for broke now with a 95% mortgage. In theory, saving up first makes sense but as house prices keep outstripping savings rates and wage inflation you may find yourself running in circles.

Being a first time buyer can be as daunting as it is exciting. With lenders offering a range of new incentives it’s more important than ever to get sound advice.

The second big decision is whether you opt for a fixed or a variable rate mortgage deal. A fixed rate mortgage – typically lasting between two to five years, is usually slightly higher than the variable option but guarantees you no nasty surprises for the agreed term. You’ll also have to pay an early repayment charge if you switch to a different mortgage before your time is up. A variable rate mortgage can be linked to the Bank of England’s base rate (called a tracker mortgage) or alternatively, you can get what is called a discount mortgage, and is linked to the lender’s standard rate.

The Government’s Help to Buy scheme has recently been discontinued. Previously it allowed you to make your first property purchase – provided it was worth no more than £600,000 – with a deposit of at least 5%. In return, the Government guaranteed up to an additional 15% of the property price. If you were hoping to apply and are now left feeling confused about the changes and where this leaves you, please call us today to go over your options.

First Time Buyers Help

Does my credit score matter?

Lenders check your financial income and outgoings and consider your credit score before coming to a final figure. They will also factor in your credit card usage, whether you have any outstanding loan agreements (including student debt), child care costs and more besides.

How they asses you

Lenders are concerned about the effects of possible rate increases in the future, so they expect you to have a cushion in place to ensure you’re not on the edge of your finances. This means many lenders will assess your ability to pay based on a rate that’s actually higher than the one being offered.

What is available?

There are two main products available; variable trackers and fixed rates. Typically most first time buyers prefer 2 to 5 year fixed rates as they like to know their payments are going to remain the same for that period. It’s important you seek professional advice from a qualified advisor to choose the right option for your circumstances.

First Time Buyer's F.A.Q.s

With a firsttime buyer mortgage, you’re likely to be looking for a 90% or 95% mortgage deal (meaning you’ll need a 5% or 10% deposit saved.) When it comes to borrowing money in any capacity, it all comes down to risk.

Here are five things to avoid as you prepare to buy a house.
  1. Don’t Disrupt Your Credit Score. …
  2. Don’t Open a New Line of Credit. …
  3. Don’t Miss Bill Payments. …
  4. Don’t Move Money Around. …
  5. Don’t Change Jobs. …
  6. Don’t Lease or Buy a Car.

There are several government backed schemes to help give home buyers a helping hand onto the property ladder. These can be of significant help, but lenders will check if you can afford your mortgage. 

The scheme involves an equity loan, where the government lends both first time buyers and existing homeowner’s money to buy a new build home.

  • Home must be no more than £600,000
  • You can borrow 20% of the purchase price of a property, for the first 5 years, as long as you have at least a 5% deposit.
  • If you are in London, the amount you can borrow goes up to 40%

From 2021, there will also be new regional price caps which could reduce the maximum value of homes that can be bought through the Equity Loan Scheme.

If you want to buy a house, it’s likely you’ll buy the freehold, meaning you own the property and land it sits on. If you’re buying a flat, you’ll be buying leasehold, or buying into a share of the freehold.

In England and Northern Ireland, you will have to pay stamp duty if you buy a residential property, or land, if the value is more than £125,000 (or more than £40,000 if it is a second home). Whether the property is a freehold or a leasehold, you buy for cash or take out a mortgage – it makes no difference, stamp duty will have to be paid. If you are a first-time buyer you may qualify for stamp duty relief.

First time buyers qualify for stamp duty relief for properties valued up to £300,000. Any properties above £300,000 you will pay stamp duty on the difference. For example, if you purchased a property for £450,000, you would pay no stamp duty on the initial £300,000, but you would be charged stamp duty on the additional £150,000. Please note – If you are buying a property over £500,000 you will not qualify for the relief and will pay standard stamp duty rates.

No – It is available to both first time buyers and homeowners who are looking to move. With this scheme you have to put in a 5% deposit, the government lends you up to 20% (40% in London) and then you can get a mortgage for the remaining 75%. You do not need to make any payments on the 20% the government has lent you for the 1st five years, after that payments will begin.

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Woodhall Mortgages 

Croft Myl, W Parade, Halifax HX1 2EQ

Call us: 01422 354011

info@woodhallmortgages.co.uk

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TESTIMONIALs

From Great Our Clients.

Frances Lawrence
Frances Lawrence
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he service we received from Luke at Woodhall Mortgages was of the utmost quality from the very start to the very end. Luke is extremely knowledgeable, diligent, organised and patient, understanding how to provide real customer service, vital expertise and guidance in what is a highly important and sometimes intimidating moment in one's life - getting a mortgage. Luke gave us plenty of his time to explain things we didn't understand, to hash out the finer details of what we wanted, and also to check paperwork and suppliers to ensure that the mortgage went through smoothly. We felt valued, supported and informed throughout the whole process, and his professional guidance gave us confidence to make decisions. We were looking for a company to provide us with the full service for getting a mortgage, to benefit from their expertise to make the task as straight-forward and simple as it could be for us and that is exactly what we received. Woodhall Mortgages are exactly what we hoped to find when engaging a company for professional financial advice – knowledgeable, trustworthy, experienced, and conscientious. Absolutely top service, and highly recommended.
John Doe
John Doe
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We used Woodhall Mortgages to help us find a remortgage deal that suited our situation. Luke was exceptionally competent and hard working in finding us the right deal. I really appreciated the effort he went to navigating the hurdles in our remortgage process, and he provided regular updates of the progress throughout. Woodhall do charge a fee, which some brokers do not, but for us the fee was money well spent as an earlier experience with a different (fee-free) broker was much more frustrating. I can certainly recommend Woodhall, and we will use them when we come to remortgage again.
Natalie Midgley
Natalie Midgley
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Becky at Woodhall is absolutely amazing ! she got our mortgage offer approved in 4 days and was always on hand even at weekends to help with every step of the process. not only is she professional and knowledgeable she is the kindest and down to earth mortgage advisor I have come across. can not recommend enough !
Thomas Neville
Thomas Neville
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Fantastic service received from Luke. Luke has previously dealt with my mortgage on a different property and I had no doubt to use his expertise once again. Luke is extremely helpful and professional and his knowledge is second to none. Luke gave me plenty of his time to go through the details and also to check all paperwork to ensure that everything went smoothly. I can't recommend Luke and Woodhall mortgages enough and i will be using their services in the future.
Eloise Covill
Eloise Covill
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Can't recommend Chris highly enough! Chris was fantastic from start to finish. We had quite a complicated case as our Lender kept changing the goalposts on what building work they wanted carrying out before they would release our mortgage offer, and then became unresponsive. Chris was extremely patient and found a solution, which took us from a situation where we thought the sale might fall through, to completing the sale in a few weeks! He was extremely responsive, fast-acting, and very knowledgeable. Would recommend anybody looking to move speak to Chris and team first!
Rebecca Caines
Rebecca Caines
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I would definitely recommend Woodhall Mortgages. Luke has been fantastic - explaining every process clearly, advising on the most appropriate mortgage, being extremely responsive and professional throughout. Thank you for making this part of the process worry free.
Zhanna A
Zhanna A
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Many thanks to Luke at Woodhall Mortgages! As a first time buyer I was not sure where to start and how to find the right deal but Luke was extremely knowledgeable, professional and helpful! I really appreciated as Luke made the whole mortgage process run smoothly without any headache and stress. They provided regular updates of the process throughout. That was not only about business, but about personality things as well! ))) Many thanks! Amazing company! No headache, no wasting of your time and money! Great communication! Great and friendly staff! I will definitely be recommending Woodhall mortgages to my friends and family! Luke! You are a star! )))
Catherine Burnham
Catherine Burnham
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I wouldn't hesitate in recommending Woodhalls to anyone looking for a mortgage. Very professional and certainly very knowledgeable about this particular industry. Chris saved us a lot of money at a time when fee's for different things keep racking up. If you need a mortgage or a remortgage give these guys a call, you won't be disappointed.
Kieran Sheppard
Kieran Sheppard
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Could not have asked for a better service buying our first home. Luke was extremely knowledgeable and provided quick responses to our queries. The process was very smooth and Luke explained everything in a very clear understandable way. Thank you for all your help. I will definitely be recommending Woodhall mortgages to my friends and family.
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