How Do First Time Buyer Mortgages Work?
Your home may be repossessed if you do not keep up repayments on your mortgage.
Getting a mortgage to buy your first home is a hugely significant undertaking, but it’s one which many of us dread. How do first time buyer mortgages work? What do I need to do to prepare for the application process?
The reality is that first time buyer mortgages work in much the same way as regular mortgages. The government does provide additional support to help first time buyers make their home ownership dreams a reality, though, which you can read more about on their dedicated website. These include a range of Help to Buy schemes which can give you a discount on your first property purchase.
Help to Buy schemes aside, what do you need to think about before applying for a mortgage?
First off, you have to think about how much you’d like to borrow vs how much you’d like to put down as a deposit. 5% deposit mortgages are available, but the more money you can pay upfront, the better, as this should lower your monthly payments.
Other factors lenders will look at include:
- Your income and monthly outgoings
- Your credit score
- Whether or not you have outstanding debts
- Your employment status (whether you work full-time, part-time or are self-employed)
These factors help lenders identify how much of a risk you might be. The lower the risk, the better the rates you may be able to access.
Securing the right mortgage deal
Finding a mortgage deal which works for you (and that you’re eligible for) can be a very tricky process. Many first time buyers rely on mortgage advisors for help, including the team here at Derngate Wealth Management Northampton.
Our mortgage broker in Northampton has helped countless first time buyers realise their dreams of home ownership by guiding them through the mortgage process step-by-step. We not only find a mortgage deal which ticks all the boxes, but provide easy to understand, jargon-free advice along the way. Contact us today for a free initial consultation.