First-time Buyer & Home-mover

If you are a first time buyer people will tell you that buying a home is very difficult or at the very least, daunting. 
 
That thought is why First Time Buyers now trust impartial advisers to avoid banking jargon and the myriad of differing criteria to find the best deals for them. It is not only the interest rate that needs to be considered, arrangement fees such as product, booking and valuation need to be taken into account. On top of that is the lender suited for your situation? Will they take two days or two weeks to review the documents attached to your application? How important is speed and the certainty that your application will be agreed?
 
Whether you are a First Time Buyer or moving home it is advisable to speak to a broker first to confirm how much you should be able to borrow plus the potential costs. Alongside the mortgage you will want to think about what type of valuation or survey you would require and if you have a suitable solicitor.

We have helpful guides for First Time Buyers and handy checklists to take along to a viewing, see below.

For First Time Buyers the sixth largest “bank” is that of the parents. Part of the deposit will often come from the parents and will be a gift, with no legal charge on the money given. This is normally fine with lenders although they (plus solicitors) may need to see the source of these funds for money laundering purposes.

A deposit from a loan (bank or family) or capital raising on another property are also eligible deposits if the funds are not initially yours.

How much can I borrow?
Well, it depends. Lenders typically have a threshold based on a multiple of your income that they cannot go beyond. For most, this is 4.75-5 x income and only 4.5 x if your deposit is less than 25% of the property value. Lenders will also take into account any children you have, credit commitments, age and your level of income (as higher earners will find it easier to access the larger income multiples). A broker website or even a lender website that has a basic affordability  calculator is often misleading. The calculator might just adhere a multiple to your income without taking into account 
Some broker websites have a basic calculator that might give you an idea on potential borrowing amounts, but these just tend to multiply your income by 4.5 x which is not accurate. 

A mortgage broker tends to get access to the lender's  calculator which their underwriter will use. Some of these will have a budget planner on and even take into account deductions from a payslip like your pension or Sharesave. 

Some lenders have recently created special underwriting that can give borrowing maxing out at 5.5 to even 6.5 x your gross income. This is often, but not always based on -

• Total household income over 100K

• People in "professional" jobs such as Accountants, Doctors, Barristers, Architects, Engineers, Vets and Dentists

• Remortgaging without borrowing any further funds

• Applying for a 5 year fixed rate

So, to really find out wat you can borrow, speak to a broker as we can access many different calculators to give you a strong indication of your lending ability. 

Handy links
Budget Planner (download)
List of documents you should have for a mortgage application
First Time Buyer Guide
Checklist when viewing  properties
Stamp Duty Guide
Stamp Duty Calculator

Please feel free to read our "Helping Hands" document in this link.  This covers a wide range of information and is our guide to buying, remortgaging and protecting your home.  

Your home may be repossessed if you do not keep up with your repayments on your mortgage.