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First time buyers mortgage advice

Mortgages for first time home buyers

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Mortgage advice for first time buyers

In order to qualify for a mortgage as a first-time buyer, it is typically required that you have saved a minimum of 5% of the total cost of the home you intend to purchase. However, the greater amount you are able to save, the more favorable mortgage choices you will have.

Additionally, it is important to have sufficient funds saved to cover the additional expenses associated with purchasing a home. The specific amount you will need to pay, however, is contingent upon your lender and the specific property you are buying.

PLEASE NOTE THAT YOUR HOME MAY BE REPOSSESSED IF YOU FAILTO KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

First time buyer government schemes

If you are facing difficulties in saving a substantial deposit,
there exist various government schemes that can assist you in stepping onto the property ladder.

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Through the shared ownership program, individuals have the opportunity to acquire a portion of a residence and pay rent for the remaining portion. It is possible to purchase between 25% and 75% of the property’s total value, with the option to buy more shares as financial circumstances allow.

 

To be eligible, applicants must be either first-time homebuyers or former homeowners facing challenges in re-entering the housing market. Additionally, the total annual household income must not exceed £80,000, or £90,000 for those residing in London.

The council tenants are granted the opportunity to purchase their home at a price lower than its market value through the right to buy scheme. To be eligible, you must have resided in your council property for a minimum of three years. However, if you decide to sell the property within five years of buying it, you will be required to repay either the entire or a portion of the discount you initially received, along with a percentage of the profit you earn.

The acquisition scheme grants housing association tenants, who are ineligible for the purchase scheme, the opportunity to buy their home at a reduced price. To be eligible, tenants must have a minimum of three years of tenancy and must not have significant debts or face the risk of bankruptcy or eviction.

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