Helping First-Time Buyers To Get A Mortgage | Connect Broker

helping first time buyers to get a mortgage

Helping First Time Buyers To Get A Mortgage

 

Getting onto the property ladder can indeed feel daunting. Property prices have reached an all-time high, making deposits particularly expensive for first-time buyers. Additionally, strict lending criteria make applying for mortgages more challenging. However, opportunities still exist for those willing to put in the effort.

With diligent research, you can uncover various options. Strategic planning is crucial to making informed decisions. Equally important is having the correct information to guide your choices. Despite these hurdles, achieving your dream of homeownership is possible.

 

The “new normal” with benefits that can interest you

 

Over recent years, working from home has become increasingly common. First-time buyers can now benefit from this trend. They may find lower property prices in more accessible rural areas. Additionally, remote work offers significant flexibility. This flexibility and savings on costly travel make rural living attractive.

Buying a home involves more than just the property’s base cost. Buyers must also consider expenses such as estate agents’ fees and solicitors’ charges. Moreover, surveys and moving costs add to the overall expenditure. Potential repairs or updates might also be necessary.

Fortunately, first-time buyers have some financial relief. Stamp duty is waived if you buy your primary residence for up to £425,000. This exemption is a significant benefit for many. Consequently, we have seen an increase in first-time buyers seeking mortgages.

We are dedicated to assisting new buyers navigate these opportunities.

 

Is there hope for first-time buyers? 

 

At Connect Mortgages, we specialise in helping first-time buyers secure their mortgages. We simplify the mortgage process, breaking down the complexities of buying a home. Our goal is to make things clear for you, avoiding confusing jargon.

Misunderstandings about mortgages often come from a lack of information. However, obtaining a mortgage isn’t as difficult as it seems. We aim to change misconceptions by offering schemes and suggestions that might be unknown to you. Whatever your situation, we have the resources to provide tailored advice and support.

Don’t be disheartened if the process feels daunting at first. Owning a home is within reach with the right knowledge and guidance. There’s a lot of misleading information about needing a huge deposit to buy a property. While some lenders do have strict requirements, not all do.

For instance, you might be eligible for a mortgage without sufficient savings for a deposit. Many lenders accept gifted deposits from relatives, such as parents, grandparents, or siblings. However, some lenders may reject gifted deposits, which is where a mortgage broker becomes invaluable.

It’s crucial not to base your expectations on one person’s mortgage experience. Each situation is unique, assessed by various lending factors and individual circumstances.

At Connect Mortgages, we provide expertise to help first-time buyers navigate the mortgage landscape.

 

What are your options? 

 

First-time buyers can benefit significantly from various products and schemes to ease mortgage acquisition.

95% Mortgages:
For many aspiring homeowners, saving for a substantial deposit poses a challenge. However, lenders offer 95% mortgages to help ease the financial strain. This product caters to both first-time buyers and those seeking to relocate. Consequently, it enables more individuals to realise their homeownership dreams with a smaller deposit requirement.

Deposit Unlock Scheme:
This scheme allows you to buy a new build with only a 5% deposit. Under the Deposit Unlock Scheme, housebuilders insure the mortgages instead. Therefore, buyers benefit from reduced initial financial outlay while securing a new home.

Shared Ownership:
Shared Ownership provides an affordable path to homeownership. Buyers can purchase up to 75% of a property with a minimum 5% deposit, including paying subsidised rent on the remaining portion. It is a cost-effective alternative to outright buying. As a result, even those with limited savings can move into their first home sooner. Shared Ownership is ideal for renters who want to stop wasting money on rent but are not ready for full ownership.

First Homes Scheme:
Launched in June 2021, the First Homes Scheme assists first-time buyers, key workers, and local residents. Buyers can purchase new build homes at discounts ranging from 30% to 50% off the market value. Importantly, this discount is passed on with each resale. This scheme fosters a cycle of affordability, helping more people buy homes. Although only a few developments currently offer First Homes, its popularity is expected to rise. This is especially true since the Help to Buy scheme has ended.

In summary, navigating mortgage options requires careful consideration. No single solution fits all; each buyer’s circumstances and the available schemes should be thoroughly evaluated. Consequently, exploring these options is crucial to finding the best fit for your needs.

Understanding multiple-income mortgages

 

Credit scores and affordability checks often perplex first-time buyers. This landscape can be tricky for mortgage novices. Most mortgage lenders limit loans to 4-4.5 times your income. However, some providers offer loans up to 5 or even 6 times your salary. If you meet their criteria, you could seize this rare chance. This option significantly aids first-time buyers in securing a mortgage.

Transitioning to another aspect, those struggling to buy their first home must maximise borrowing potential. Even seasoned professionals might need access to higher loan amounts. Properties in popular British areas often require borrowing 5 to 5.5 times their annual income. Consequently, these higher loans can be crucial for affording homes in these desirable locations.

Moreover, lenders focus on offering sensible and responsible lending. They carefully assess borrowers to ensure they meet specific criteria, reflecting a commitment to treating customers fairly. Thus, understanding these factors helps in navigating the mortgage process effectively.

 

Other things a borrower can explore

 

A green mortgage is a home loan for buyers purchasing an energy-efficient home or existing homeowners making energy-efficiency improvements.  

Green Mortgages: An Eco-Friendly Incentive

Green mortgages reward you for making energy-efficient choices in your home. Whether you are a carbon-neutral enthusiast or not, these mortgages offer tangible benefits. When you buy or remortgage, they provide incentives like cashback and better interest rates than standard mortgages. Moreover, green mortgages allow you to make smart decisions about your current property or purchase an efficient new one. Notably, they enable you to achieve this without breaking the bank. Consequently, they present a viable option for those looking to save money while supporting the environment.

Ease of Getting a Mortgage

Depending on your situation and lender, obtaining a mortgage might be simpler than you think. It boils down to accessing the right information and finding options that suit your needs. At Connect Mortgages, we can significantly expand your choices. We provide advice, more options, and access to various schemes. Regardless of the product or scheme deemed best for you, we can source a suitable mortgage. Our expertise helps you secure a mortgage that matches your unique circumstances.

Supporting First-Time Buyers

We are a recognised network that has partnered with lenders to enhance affordability for first-time buyers. Our tailored advice makes buying a home a more achievable goal. By understanding your situation, we can help first-time buyers navigate the mortgage process effectively. We focus on boosting affordability and making the home-buying experience smoother.

Contact Us for More InformationConnect Mortgages

For more information on our services and affordability plans, contact us today. We are here to explore how we can assist first-time buyers in obtaining a mortgage. Let us help you make homeownership a reality.

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About the Author

Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.

About the Author

Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.

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