Concerned there's too much to do?
Buying a home can be stressful, but it shouldn’t be.
We can guide you through the process and put your mind at ease. Having one person you can always come to throughout the process is a great benefit.
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 is why more people now use 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?
We have helpful guides and handy links for First Tme Buyers
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. They will also take into account any children you have, credit commitments, your age and your level of income (as higher earners will find it easier to access the larger income multiples). A lender website that has a basic affordability calculator is often misleading.
A mortgage broker often gets access to the lender’s calculator which is the same that their underwriter will use. Some of these will have a budget planner on and even use deductions from a payslip like your pension, medical insurance or Sharesave when assessing affordability.
There will be lenders can offer up to 5 - 6 x your gross income. However certain criteria would need to be met. Below is a general, but not exhaustive list:
- 01
Total household income over 100K
- 02
People in "professional" jobs such as Accountants, Doctors, Barristers, Architects, Engineers, Vets and Dentists
- 03
Remortgaging without borrowing any further funds
- 04
Applying for a 5 year fixed rate
- 05
Size of the deposit or equity relative to the house value
- 06
First-time buyers
So, to really find out what you can borrow, speak to a broker as we can access many different calculators to give you a strong indication of your lending ability.
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.
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.
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.
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