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First Time Buyers

Looking to buy your first home? It is an exciting time that involves some of the most important financial decisions you’ll ever make. Let us help you! It is a big step but with us, the process doesn’t have to be difficult. We’ll take care of everything that is necessary when looking for a home and applying for a mortgage.

Below you will find the most important things you need to know about getting a mortgage on your first home.

We can help you to secure a mortgage for your first property.
We can help you to secure a mortgage for your first property.

Need assistance? Leave your details, and we'll get back to you shortly. Request a callback now.

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Do I need an adviser to get a mortgage in the UK?

The decision to hire a financial adviser or manage your own investments yourself is certainly not an easy one. When buying your first home in the UK, you will have to learn many of the rules governing the property and mortgage market. Choosing the right product is not easy either, as the number of available offers fluctuates around 2,500.

On the other hand, nobody works for free. Hiring a mortgage broker costs several hundred pounds and, when moving, every penny counts. Is it worth saving money on the services of an adviser? Not necessarily. Finding the right mortgage takes a lot of time, effort and industry knowledge. When deciding on a long-term financial commitment, it is worth making sure that the product you choose is well priced and tailored to your individual needs. By entrusting your finances to specialists, you gain a great deal indeed. You gain time, lower instalments and mental peace of mind.

Do you have yet to have your first conversation with a broker? Read the article What to ask a credit adviser.

How much can I borrow?

Before you start looking for the perfect home, carry out a solid analysis of your finances. It is important to know how much equity you can afford and how much you can borrow to buy a home. Generally, to qualify for a mortgage, you need a good creditworthiness and a history of paying your bills and other financial obligations on time.

By contacting us, we can check how much you can borrow. The result of this audit will also tell us if you’re ready for this big step, or if you need more time to build up a larger deposit or improve your credit score.

You can also find helpful tips in the article UK housing mortgage – how much do you need to earn to get one?

First time buyers
First time buyers

Ready to start a conversation? Fill out our contact form and connect with us today!

How much deposit do I need to get a mortgage in the UK?

Your own contribution, or deposit, is the amount of money you have available to buy your first home. It has a big impact on both the interest rate and the maximum value of your mortgage. Regardless of the price of the property, most banks require a deposit of 5 or preferably 10%. More recently, a mortgage without a deposit is also available.

When looking for a mortgage, we can check which offers you may qualify for, based on the amount of deposit you have. For example, if you want to buy a property worth £100,000 and you have a deposit of £10,000, you will want to borrow 90% of the value of the property. Typically, the larger the equity contribution, the lower the interest rate and the cheaper the monthly mortgage installment.

If you want to see the impact of the amount of your own contribution on the interest rate of the mortgage, you will find the HSBC bank website helpful. Of course, the values given there are for illustrative purposes only.

Additional costs you need to know about before buying a property

When buying your first home, you need to be prepared for some additional costs. Not only does the transaction involve some initial expenses (brokerage fee, bank commission, valuation, solicitors etc), but also the ongoing costs of maintaining the property.

Council tax – the exact amount may vary depending on the region where your property is located. You can find the rates on Lambeth.gov.uk;

Gas – the price of gas will depend on your provider, but the average bill for UK households is £112 per month;

Water – the cost of a typical water bill on average is £35-£55 a month;

Electricity – the price of electricity will depend on your provider, the average monthly bill will be £96 per month;

TV license – The average cost for a TV subscription is £20-30;

Property insurance – The average cost of property insurance is £30 – £45 a month;

Fees for the purchase of your first residential property

If you’re buying a property in England or Wales, there are two different types of ownership that generally apply: freehold or leasehold.  If you buy the freehold, it means that you own the building and the land it stands on. When you buy a leasehold, you own the building but only lease the land from the landlord for a specific time. In that case, your lease will oblige you to pay ground rent and service charges to the landlord each year.

Typical fees associated with property purchase:

  • Legal fees (multiple extra options: New Build, Gifted Deposit, Help To Buy, Leasehold/Freehold, etc);
  • Stamp duty (depending on the price);
  • Building Survey / Homebuyer Report (optional);
  • Mortgage application fee;
  • Broker fees;
  • Cost of conveyancing;

If you have any questions regarding buying your first property or our services, please do not hesitate to contact us. Our mortgage advisers are happy to answer all your questions and explain the process of buying the first property. You can read more about our services here: Mortgage advisor Coventry.

Our team is here to assist you. Contact us by completing the form below.

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Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. Conveyancing services and some forms of Buy to Let mortgages are not regulated by the Financial Conduct Authority.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts
secured on it.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. Conveyancing services are not regulated by the Financial Conduct Authority.

Extend Finance nor The Right Mortgage Limited can’t provide advice regarding Personal Pensions, Pension planning or investment planning advice. You must seek independent financial advice from a suitably qualified professional financial adviser who may charge you for advice.

Wills, Will writing, Trusts and Trust planning are not regulated by the Financial Conduct Authority.

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