First-time buyer guide
Purchasing a property is an exciting and memorable experience for many people, however, many people may be unsure of the process, or the process may seem intimidating for some individuals, especially for first-time buyers. Starting the full mortgage process can be the first step towards some individuals securing their dream home, however, there are a few processes that need to be put into place to make an offer on the property.
Finding a broker to compare mortgage lenders
The first step includes meeting with a mortgage adviser to discuss your financial status, current income, and any potential issues that could impact your mortgage application. This is crucial as it will help to determine the type of mortgage that will suit your needs. Mortgage lenders usually need to verify all the applicants’ documentation, this can include payslips, bank statements as well as tax returns. Self-employed applicants will be required to provide additional documentation such as business accounts and tax calculations.
Contacting estate agents
Once you’ve been pre-approved for a mortgage, you can start to look for properties that suit your desired needs such as budget and location. Once you have located a suitable property, the next step will be to make an offer. It’s important to remember that there will also be other interested buyers, this may mean that you will have to provide an offer higher than the seller’s asking price to be able to secure the property.
Once the offer has been accepted, you will need to sit down and work with your mortgage broker to submit a full mortgage application to the lender. Some additional information may be required, and an appointment with a conveyancing solicitor may be made to complete the legal paperwork. A basic survey will then be carried out by the lender’s surveyor to identify any significant problems with the property. You can have your survey carried out independently, however this will incur additional costs.
Once you have received a mortgage offer from the lender, the solicitor process will begin. This process involves completing all the legal paperwork, carrying out identity checks, and paying the mortgage deposit for the property. At this stage, you will need to place the buildings and contents insurance on risk, arrange removal costs, and make sure any necessary renovations and repairs are factored into your budget.
Conveyancing
Finally, once all the legal processes are complete and your mortgage deposit has been paid, you will then exchange contracts and take legal ownership of the property. On completion, you can then collect the keys from your estate agent and move into your new home.
When purchasing a property for the first time it’s essential to consider all the additional costs that are involved, some of these can include mortgage adviser fees, mortgage arrangement fees, solicitor fees, and even stamp duty. It’s also vital to keep a budget for items like furniture, removal costs, and any necessary renovations that may require attention.
Mortgage Insurance UK
The amount of mortgage protection insurance you will need will depend on the size of your mortgage, as well as your circumstances. It’s important to make sure that you speak to an independent financial adviser or specialist adviser to ensure that you have the right level of coverage. They will be able to discuss with you all the possible and available options, which will enable you to make an informed decision about what is the best protection for you.
We will do a quick medical screening with you for all policies whether this is over the phone or face to face, whichever is more convenient and the most comfortable for you. This consists of a range of questions that regard your health and lifestyle.
For more information on insurance and how much coverage you need, visit our page here.
In summary, the journey of owning your dream property can be exciting but also intimidating and challenging. With the right guidance from your mortgage adviser and solicitor, your decision to purchase your first home can be completed in a smooth and stress-free manner.
If you are purchasing your first property and are looking for a mortgage, contact us on 0151 662 0188 or email info@ltcmortgages.co.uk.
The most common questions first-time buyers ask
Why use a broker vs the bank?
Banks only offer their own set of rates and terms [VS] Brokers will compare lenders to highlight the various rates and benefits.
Brokers let you know when your fixed rate is ending & compare better options with various lenders [VS] Banks won’t tell you what the rest of lenders have to offer.
Banks offer limited, generic support [VS] Brokers offer around-the-clock support tailored specifically to you.
How much deposit should a first-time buyer have?
Most places will usually ask for a 10% deposit, however many places have implemented schemes to introduce a 5% mortgage deposit on certain properties, sometimes even 0%.
Who qualifies as a first-time buyer?
If you have never owned a property, you qualify as a first-time buyer. If you have owned a home in the past, you do not count as a first-time home buyer.
What government helps for first-time buyers?
The Government provides numerous schemes to allow first-time buyers to get onto the property ladder. Some government schemes include a Lifetime ISA, Help to Buy, Right to Buy, and Shared Ownership.
How long does a first-time buyer purchase take?
The timeline for purchasing a house can vary based on factors like property type, location, financing, and legal procedures. Typically, the process takes around 8-12 weeks, although sometimes it may take a little longer.
How much do solicitors charge for first-time buyers?
Conveyancing solicitor fees range from around £1,200-£2,400 (excluding stamp duty).
They tend to be broken down into ‘standard legal fees’ as well as ‘disbursements’. Disbursements include local searches and cost up to £300-£350. This payment is taken off your overall cost.
