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Helping First Time Buyers To Get A Mortgage

helping first time buyers to get a mortgage

Helping First Time Buyers To Get A Mortgage

 

Although getting onto the property ladder may seem daunting, opportunities remain. Unfortunately, prices have hit an all-time high, making deposits particularly expensive for first-time buyers and mortgages tricky to apply for due to stringent lending criteria. Nonetheless, with diligent research, strategic planning, and the correct information, you can make your dream of owning a home come true.

 

The “new normal” with benefits that can interest you

 

Working from home has become more commonplace over the last few years; first-time buyers may have a chance to take advantage of lower property prices in rural areas. In addition, with greater flexibility regarding remote work, not to mention the savings you make from extortionate travel fares, purchasing further out of towns and cities is an attractive option.

Purchasing a home isn’t only about the base cost of the property; there are other expenses to consider, such as estate agents, solicitors and surveys. Plus, you’ll need money for moving costs and potential repairs or updates that may be required. Fortunately, if you’re a first-time buyer purchasing your primary residence up to £ 425’000 in price, stamp duty is something you won’t have to worry about. An eyeopener that sees us increase the number of clients, we are helping first time buyers to get a mortgage.

 

Is there hope for first-time buyers? 

 

At Connect Mortgages, helping first time buyers to get a mortgage is part of what we do. This is where mortgages are made simple, and we understand the complexities of buying a home so you don’t have to. We dissect the mortgage jargon and speak with you using words that make sense to you. Staying on topic, we know the misconceptions about getting a mortgage. This can sometimes arise from a borrower not being privy to all the correct information. However, getting a mortgage is less far-fetched than some would lead you to believe. 

We are here to help change that narrative and provide schemes and suggestions you may not know exist. We’re not just talking the talk; whatever your situation, we have the resources and expertise to provide advice and assistance. So, don’t be discouraged. It may seem disconcerting initially, but owning your own home is achievable – you need the right know-how and guidance.

There is scaremongering and misconstruing information about having a huge deposit to get on the property ladder. Although this could be a reality for some, it is also important to note that not all lenders have the same criteria and requirements. For example, you may find that you are eligible for a mortgage but don’t have enough savings to cover the required deposit. Most lenders prefer when your gifted deposit comes from a relative. This is where the bank of mum and dad, grandparent or sibling comes in. Other lenders may not accept gifted deposits; that is also where a mortgage broker comes in handy.

Where mortgages are concerned, it’s never an idea to go by one individual’s experience. There isn’t a one-size-fits scenario but an assessment based on various lending factors and the borrower’s circumstances.  Helping First Time Buyers To Get A Mortgage

 

What are your options? 

 

The products and schemes that can significantly helping first time buyers to get a mortgage are as follows; 

  • 95% Mortgages:  Owning your own home is a dream many would-be borrowers strive for, but saving enough money to make that initial deposit can be difficult. So to help alleviate some of the financial burdens, lenders offer 95% mortgages for first-time buyers and those relocating. This would go a long way in making this a reality. = “Helping First Time Buyers To Get A Mortgage.”
  • Deposit Unlock Scheme: You can buy a new build with a 5% deposit. With the Deposit Unlock scheme, the housebuilders pay to insure the mortgages instead. =  “Helping First Time Buyers To Get A Mortgage.”
  • Shared Ownership: This is an inexpensive way to become a homeowner. You can acquire up to 75% of any property with just a 5% minimum deposit and subsidised rent on the rest. This makes it significantly more cost-effective than purchasing outright; all you need is enough money for your share, and you could soon find yourself moving into your first home. This option is ideal for renters who are not yet financially able to make a permanent commitment but don’t want their monthly payments to be wasted. = “Helping First Time Buyers To Get A Mortgage.”
  • First Homes Scheme:  In June 2021, the First Homes Scheme was unveiled to allow first-time buyers, key workers and local people to acquire new build properties at discounted prices. = “Helping First Time Buyers To Get A Mortgage.”
  • Here’s how it works: from 30% up to 50%, purchasers can save on market value when they buy, and that same benefit is passed along whenever their property is resold. As a result, it creates a continuous cycle of access for aspiring homeowners so that more individuals can purchase affordable dwellings. Although First Homes have only a limited number of developments available, this scheme could become much more popular and widely used as the Help to Buy scheme is no longer available.  Helping First Time Buyers To Get A Mortgage

 

Understanding multiple-income mortgages

 

Much has been said or documented about credit scores and affordability checks for first-time buyers. Something that can be a minefield for a mortgage novice.  

Although most mortgage lenders will only loan up to a maximum of 4 – 4.5 times your income, select providers may deem you eligible for an even more significant amount, up to 5 times your salary and even 6 times. So, if you fit their criteria, take advantage of this extraordinary opportunity. This goes a long way in helping first time buyers to get a mortgage.

Not only those struggling to purchase a home for the first time need to maximise their incomes’ borrowing potential to climb onto the property ladder. Even experienced professionals may need access to mortgage power at 5 or even 5.5 times their annual income to afford properties in some of Britain’s most popular residential areas.

Lenders are also mindful of offering sensible and responsible lending. But, of course, a lot depends on factors reflected in treating customers reasonably by meeting the lender’s criteria.  

 

Other things a borrower can explore

 

Helping First Time Buyers To Get A Mortgage

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

Whether you are a carbon-neutral enthusiast or not, you can get rewarded for making energy-efficient choices in your home with a green mortgage. 

When you buy or remortgage, these mortgages offer incentives like cashback and more attractive interest rates than standard mortgages. With a green mortgage, you can make intelligent decisions about your existing property or purchase an efficient new one without breaking the bank. This is another option to see us helping first time buyers to get a mortgage.

Depending on the situation and the lender, getting a mortgage can be easier than you think. It all boils down to having access to the correct information and finding out which options are best suited to your needs. Connect Mortgages can significantly impact more options, advice, and other schemes. Whatever scheme or product is deemed best for you, we can source a suitable mortgage that reflects your circumstances. As a recognised network, we have partnered with a lender to boost affordability for hard-hit-first-time buyers. We provide tailored advice that makes buying a home an easier, more likely prospect.

For more information on any of the aforementioned assisted schemes, our services and affordability home purchase plans, get in touch today and let us explore how we are helping first time buyers to get a mortgage.   

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Liz Syms

(CeMAP)

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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