First-Time Buyer Mortgages
Is a Mortgage Right for You?
Buying your first home is an exciting milestone in your life, but it's crucial to make informed decisions. At Finance Factors, based in Maidstone, we specialise in providing clear and easy-to-understand mortgage advice tailored to first-time buyers. While many lenders offer products specifically for first-time buyers, it's essential to explore all available options. A mortgage is a significant financial commitment, so consider whether it aligns with your current and future plans.
Evaluate if a mortgage suits your lifestyle and financial situation. Questions to ask yourself include: Should you rent or buy? Can you afford the monthly payments? Are you confident about your job security? Are you purchasing alone or with others? Is your credit score strong enough? Addressing these questions will help you determine if now is the right time to buy or if you should explore other options like renting or house-sharing.
Shared Ownership
Shared Ownership, also known as part-buy/part-rent, offers an alternative path to homeownership. This scheme allows you to purchase a portion of a property using a mortgage and deposit while paying rent on the remaining share to a housing association. You can start by buying as little as 25% of the property and gradually increase your ownership through a process known as staircasing eventually owning 100%.
To qualify for Shared Ownership, you must meet specific criteria. Typically, you should be a first-time buyer or someone who previously owned a home but can no longer afford to buy on the open market. You must be a UK or EU citizen with a maximum household income of £80,000 outside London or £90,000 in London. Additionally, you must meet affordability criteria. Although the buying process is similar to other purchases, there are extra costs like service charges, ground rent, and legal fees for each additional share you buy.
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What You Need for a First-Time Mortgage
Securing a first-time buyer mortgage involves several steps. Firstly, ensure your credit score is in good shape, as it significantly impacts your mortgage eligibility. Next, save for a deposit; the more you can put down, the better the mortgage rates you'll likely secure. Gather all necessary documentation, including proof of income, bank statements, and identification. It's also advisable to get a mortgage agreement in principle, which shows sellers you're serious and financially capable of purchasing a property.
At Finance Factors, we take the FAFF out of finance, offering you a wide range of first-time buyer mortgages. Our experienced advisers are here to guide you through each step, ensuring you make the best choice for your financial wellbeing.
First-time Buyers and Shared Ownership: Frequently Asked Questions
What should first-time buyers consider before getting a mortgage?
First-time buyers should evaluate their lifestyle, financial situation, job security, and credit score. They should also consider whether renting or buying is more suitable.
What is Shared Ownership?
Shared Ownership allows you to buy a portion of a property with a mortgage and deposit, while paying rent on the remaining share to a housing association. You can increase your ownership over time.
Who qualifies for Shared Ownership?
To qualify, you must be a first-time buyer or someone who can no longer afford to buy on the open market, be a UK or EU citizen, and have a maximum household income of £80,000 (£90,000 in London).
What steps are involved in securing a first-time buyer mortgage?
Steps include ensuring a good credit score, saving for a deposit, gathering necessary documentation, and obtaining a mortgage agreement in principle.
What extra costs are involved in Shared Ownership?
Extra costs include service charges, ground rent, and legal fees for each additional share you buy.
How can Finance Factors help first-time buyers?
Finance Factors offers clear, impartial advice, guiding first-time buyers through each step of securing a mortgage and exploring all available options.
What documentation is needed for a first-time buyer mortgage?
You will need proof of income, bank statements, and identification. A mortgage agreement in principle is also advisable.
By following these guidelines and considering all your options, you'll be well on your way to making an informed and confident decision about your first home purchase. For more detailed advice, feel free to explore our other Mortgage Guides or use our Mortgage Calculators.
Phone: 07785 954074
Address: 2 Kingsbroom Court, Kingswood, Maidstone, England, ME17 3ST
Email: kbl@financefactors.co.uk
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOANS SECURED AGAINST IT.
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Finance Factors is a Trading style of Finance Factors LTD who are an Appointed Representative of Advice Solutions LTD which are Authorised and Regulated by the Financial Conduct Authority. The Financial Service Register Number is 961681.
The Financial Conduct Authority does not regulate some forms of Buy to Lets.
There may be a fee for mortgage advice. The precise amount will depend on your circumstances, but will be agreed with you before proceeding.
Finance Factors is a Limited Company. Registered Address: Finance Factors Ltd, 2 Kingsbroom Court, Kingswood, Maidstone, England, ME17 3ST, United Kingdom. Registered in England and Wales under number 15814885.
We always aim to provide a high-quality service to our customers. However, if you encounter any problems, in the first instance please write to the registered address above, email or call Finance Factors outlining your complaint, if we are unable to resolve this, you can take your complaint to an independent Ombudsman. Our advice is covered under the Financial Ombudsman Service (www.http://www.financial-ombudsman.org.uk/consumer/complaints.htm).
The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. Some calls maybe recorded for training and monitoring purposes.