First Time Buyer Mortgages
Buying your first home can be a daunting experience, here at Bristol and Bath Financial Services we proud to help first time buyers get on the property ladder. We are trusted and experienced advisers who can help guide you through each step of the first time buyer process. We will help you get the right but most cost effective mortgage there is on the market, we can search hudreds of first time mortgage deals and recommend the perfect deal for you.
Purchasing a property is one of the biggest steps you can make in your life and for most of us buying a property will be the most expensive purchase of our lives, so getting it right is paramount.
Majority of people will need a mortgage to buy a property, this is where specialist first time buyer mortgage advice is needed.
A first time buyer mortgage is in theroy no different to any other mortgage, however, the majority of mortgage lenders will allow first time buyers to borrow more against the property and/or offer incentives such as cash back or free valuations.
There are various types of products you can take but traditionally most mortgge lenders will offer fix rates. This means that your payments will be fixed for a certain period of time, this could be 2, 3, 5 or even 10 years. For a full guide on first time buyer mortgages you can visit one of my blogs here
The cost to buy a home varies from house to house, but as a first time buyer you are in luck. Stamp duty is a goverment levy tax you pay on buying properites in the Uk, there are different tax thresholds but as a first time buyer you don't pay tax on the first £300,000. This is because first time buyers are entitled to relief on the first £300,000 of Stamp Duty on properties up to a value of £500,000. For example, if you’re buying your first property for £350,000 you would pay:
- No Stamp Duty on the value of the property up to £300,000
- 5% tax on the value between £300,001 and £350,000.
- In this case, the total amount of Stamp Duty would be £2,500
Other costs for first time buyers could be broker or advice fees, here at Bristol and Bath Financial Sercices, we do not charge broker or advice fees to our clients. This mean you can keep those extra £'s in your pocket for the same quality advice you would receive from any other broker.
You will also be required to instruct a solicitor/conveyancer to act on your behalf, the cost of solicitors vary but your adviser can help recommend a solicitor who is right for you.
Costs that are related to buying your first home also include buildings insurance (which is a mandatroy condition of most mortgages), contents insurance, life insurance and income protection. Your expert adviser will talk you through all your options when presenting their advice.
Coming prepared to a first time buyer mortgage meeting is key, your mortgage broker will require certain information to assess your needs and make a recommendation, therefore use the following checklist to help guide you on
what you will need to bring:
- Passport or Driving licence
- Confirmation of your address
- Last 3 months payslips
- Last 3 months bank statements
- Proof of deposit
- Any existing insurance plans
- Details of the property that is being purchased
- Solicitor details (although your adviser can recommend one)
- Details of the estate agent selling the property
- Credit report if you have experienced problems in the past