First Time Buyer
Buying your first home could be one of the single most important financial transactions you will make in your lifetime, so it’s important to make the correct decision.
Whether you are just starting to consider buying or you’ve already seen something you love - talking to our experienced mortgage advisors will give you a better understanding of your next steps. Our broker free fee advice has helped many of your colleagues onto the property ladder.
We can help work out what you can afford to borrow and find you the most suitable mortgage product for your needs. We can then obtain a 'decision in principle’ on your behalf. This is a promise from a lender that they are willing to loan a certain amount of money to you, subject to a full mortgage application.
If you’re just starting to think about getting your deposit together or you have already found the perfect place, a chat with an experienced advisor can provide some much needed clarity. Often the process of buying a home can seem intimidating; we’ve helped lots of people purchase their first house and are confident that we’ll be able to help you too.
When considering getting your first mortgage, it’s worth fully understanding your budget. We’re here to help make it clear what you can afford, what suitable monthly repayments would be and encourage you not to over stretch yourself. Making the right decisions at this stage will mean that hopefully you are able to live in a house with monthly mortgage payments that fit well with your current circumstances.
What Should You Bring To Your First Mortgage Appointment
Just yourself as everything will be explained to you once you arrive, though bringing your latest payslip and bank statement is useful to allow your mortgage adviser to accurately confirm your affordability/borrowing capacity. A whole of market mortgage adviser is best for obvious reasons rather than working with your own bank or building society who can only recommend their own products and may not be the most competitive in the marketplace.
What Are The Different Steps Involved With Purchasing A Property?
Step 1 – meet with a whole of market mortgage adviser to confirm your borrowing capacity and to obtain an “Agreement in Principle” - written confirmation you are eligible for a mortgage
Step 2 – view as many properties you can until you find the dream one
Step 3 – speak to a solicitor who will then give you advice on what to offer on your chosen property before submitting your offer in writing
Step 4 – once accepted, get back in touch with your mortgage adviser to submit your full mortgage application
Step 5 – your mortgage adviser will then confirm when your mortgage has been formally “offered” (finalised) typically within 5-10 working days
Step 6 – once your solicitor has received a copy of your mortgage formal offer, you will be invited in to sign a standard security which is formally agreeing to proceed with the purchase of your dream home
Step 7 – pick up your keys to your new home on the agreed date of completion
What Costs Are Involved With Buying A Property?
If you are working with a free whole of market mortgage adviser then there will be no fees to pay as they normally receive a fee from the mortgage lender best suited to your needs and circumstances.
Legal fees vary depending on the fees charged by individual legal firms, somewhere between £400 - £900 plus VAT is typical. Remember, if you pay more than £145,000 and less than £250,000 for your new property, you will also have to pay Land and Buildings Transactions Tax (LBTT) at a rate of 2% on top of your legal fees. The rate of LBTT increases when you pay more than £250,000. Full details can be found at https://www.revenue.scot/land-buildings-transaction-tax/guidance/calculating-tax-rates-and-bands
Do You Need A Large Deposit To Buy Your First Home?
No, typically the minimum deposit nowadays is 5%, though it is worth speaking to a whole of market mortgage adviser as there is a scheme available at present where you require less than this for example, the LIFT (Low-cost Initiative for First-Time buyers) scheme.