First Time Buyer
Mortgages

Are You Buying Your First Home?

The prospect of buying your first home is both daunting and confusing.

Our aim is to guide you through the transaction from start to finish so that you understand exactly what the purchase entails and how much it will cost. We can recommend the services of local solicitors to assist in this process. This is the largest financial transaction you are ever likely to make so it must be done with clarity.

The last few years have been somewhat bittersweet for those looking to obtain a mortgage, be that a first-time buyer, a home mover, or someone wishing to re-mortgage their existing home.

We have experienced a lengthy period of historically low interest rates which has helped fuel unprecedented growth in property prices, so first-time buyers have enjoyed very cheap mortgages but had to pay a pretty penny for the house!

More recently, however, the whole landscape has changed beyond recognition. During the autumn of 2022 fixed rate mortgages began to increase due to background economic circumstances, and the Bank of England Base Rate also began a sustained series of hikes, mainly to try and temper rapidly rising inflation.

On the flip side, we have seen house price rises begin to slow and more recently fall back to some extent, which does offer some hope to those looking to get onto the ladder for the first time.

Getting on the ladder

First-time buyers can be appealing to prospective sellers: they are chain-free, and as such are very often able to complete the purchase as soon as the seller is able to.

Although mortgage rates are currently high, relative to where they were, there is a wide availability of 95% deals around, which allows just a 5% deposit to go in. Some lenders will also consider some or even all this deposit coming in the form of a gift from a family member (generally lenders do like to see that a portion of the deposit has been saved by the applicant/s) and there are even lenders that consider some assistance with the deposit coming from a landlord in the form of a discount to the purchase price. Speak to us for further information!