First Time Home Buyers

As a first-time home buyer, there are several important steps and considerations to keep in mind. Let’s break it down:

Start Building Your Deposit:

Begin saving for your mortgage deposit. Typically, you’ll need at least 5% of the property value. For instance, if you’re eyeing a home priced at £250,000, aim for a deposit of at least £12,500.

Ideally, save more than 5% if possible. A larger deposit opens up a wider range of mortgage options at better rates.

Check Your Credit Score:

Lenders assess your creditworthiness during mortgage applications. A good credit score is crucial.

Take steps to improve your credit rating before applying for a mortgage. Consider whether you have any existing credit commitments and ensure that the monthly payments are all paid on time and in full. If you have a credit card, small and regular usage, paid off in full every month will improve credit score and credit history.

Clean Up Your Current Account:

Lenders consider your income and monthly expenses to determine how much you can borrow.

Review your current account to understand your spending habits. Cancel unnecessary expenses (like expensive gym memberships or regular nights out) to present a better financial profile to lenders. Also lenders do not like to see Gambling or betting transactions, especially if there are multiple deposits in a single month.

Remember, buying your first home can feel overwhelming, but understanding these initial steps will help you navigate the process with confidence.

Using a mortgage broker can be highly advantageous for first-time home buyers. Here are the top benefits of working with a mortgage broker:

Get the Most Suitable Deal for You:

A mortgage broker can search for the most suitable deal on your behalf, considering your specific demands and circumstances.

Unlike dealing directly with a bank or building society, brokers have access to an extensive range of lenders and products, giving you more options and negotiating leverage.

They remain unbiased since they are not tied to any single lender and can provide impartial advice.

Brokers take the time to understand your long-term goals and recommend the most suitable products.

They can answer your questions, clarify doubts, and assist you throughout the application process. Applying for a mortgage can be time-consuming, especially if done on your own. Mortgage brokers handle paperwork, chase lenders for updates, and keep the process moving forward.

They work around your schedule, even offering telephone calls or virtual consultations to complete application for added convenience.

Avoid Rejection:

Lenders thoroughly assess financial situations and employment history. A broker’s expertise ensures you meet eligibility criteria, reducing the risk of rejection.

In summary, a mortgage broker simplifies the process, provides expert advice, and helps you secure the best loan terms for your first home purchase.