FIRST TIME BUYERS

MORTGAGE ADVICE YOU NEED TO KNOW!

Take Your First Step With The Mortgage Hive

We understand how confusing buying your first home can be. The Mortgage Hive will give you free advice on all aspects of purchasing your first property. With access to the whole of the market, you can be sure to get the best mortgage to match your circumstances. The Guidance we offer will help you understand:

How much you can borrow
The deposit you need
Which Help to Buy Schemes you are eligible for
Other costs you may incur
How long the process will take

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  • precise specialist mortgage buy to let lending
  • Newcastle building society residential mortgage
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  • Halifax residential mortgage high street new job mortgage
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Taking the First Step on the property ladder.

Buying your own home is one of the biggest decisions you will ever make. It can be overwhelming and exciting, all at the same time! Your first venture into home ownership can become confusing especially when you're unsure of the process involved.

At the Mortgage Hive, we strive to bridge that gap of unfamiliarity with free advice and support to ensure you have all the correct information before investing in your first home. From knowing how much First Time buyers can borrow to what government schemes / help are available, these questions can easily be answered by our professional team to get the best guidance possible.

How much can I raise from a Mortgage Lender?

Most Mortgage Providers will generally lend a first buyer up to a maximum of 4.5 to 5 times your combined annual salary, however, this can fluctuate depending on internal/external factors. Mortgage Lenders consider your income, deposit, regular outgoings, debts, and credit history before considering how much they can lend to ensure you are able to pay back your mortgage.

Our mortgage advisers can help first time buyers understand what a mortgage provider looks for in your credit profile and give you guidance on how to improve your credit score.

To get guidance on exactly how much you can borrow, get in contact with the Mortgage Hive today!

What Help/Schemes are available to a First Time Buyer?

It’s important to explore all options before purchasing your first home as it could save you a large amount of money or increase your chances of getting a bigger loan.

Get in touch with one of our Mortgage Brokers today to learn more..

Please note the Help to buy Equity Loan scheme has now stopped.

First Time Buyers Schemes

Right to Buy and Right to Acquire
RIGHT TO BUY


If you are a council house or housing association tenant in England or Northern Ireland. This scheme allows you to buy the property at a discount.
Some mortgage lenders will lend up to 100% of the discounted purchase price, meaning you will not need to find a deposit.

If you sell your property within 5 years, You will have to pay back the discount (or a % of it)

The maximum Right to buy discount is

*£112,000 in London
*£84,600 in rest of England
*£24,000 in Northern Ireland

To be Eligible, you need to have been a council or public sector tenant for 3 years.

RIGHT TO ACQUIRE

If you are not eligible for the Right to Buy scheme, you may still be able to get a smaller discount via the Right to Acquire Scheme

Contact us for more information.
Alternatively contact your local council or your housing association.
Lifetime ISA
You can use a Lifetime ISA (LISA) to either buy your first home or save for later in life. Must be over 18 and under 40.
You can put in up to a maximum of £4000 in each year, the government will add 25% bonus annually. until you are 50.

You can withdraw the money from ISA if you are:

*Buying your First Home
*Aged 60+
*Been diagnosed with a terminal illness (Less than 12month to live)


However, for any other reason, you would pay a withdrawal charge of 25%

Contact us for more information
Shared Ownership
With the Shared ownership scheme, you buy a share of the property and rent the rest from the landlord.
you would purchase between a 10% and 75% share of the property.

If a mortgage is required, As you are buying a small share, The deposit required is less.
We even have a lender that will consider shared ownership mortgages with no deposit (0% deposit)

It is possible at a later date to purchase more shares, and buy the whole of the property.

Contact us for more information
Home Ownership for People with Long-Term Disabilities (HOLD)
England Only

If you have a long term disability, this scheme can assist you buying a home that is for sale on a shared ownership basis. However, you can only apply if you don't meet eligibility for any of the other ownership schemes.

Older People’s Shared Ownership
Only available for people aged 55 or over.
Works similar to the shared ownership scheme (See above)
However if you own 75% of the home you won't need to pay rent on the remaining share.

If you are aged 55 we also offer advice on Equity Release (lifetime mortgages) with a large enough deposit/equity in your current property, this maybe a good alternative.

Contact us for more information.
First Home Scheme
The First Homes scheme is available specifically to first-time buyers in England aged 18 or over and provides a discount of no less than 30% when buying a brand-new home. The government has made it compulsory that one-fourth of all budget-friendly housing sold by developers ought to come under the First Homes initiative, although not every new-build property is included in this scheme. Local councils have been authorized to request discounted prices of 40% or 50%, instead of just the regular rate of 30%, on First Homes in their area if they can provide evidence that a greater reduction is needed. To guarantee that the discounted rate is based on the current market value, each property is evaluated by a certified surveyor. If you wish to be eligible for this scheme, your household income must have been £80,000 or less (£90,000 or less in Greater London) the year before you purchased a property. Additionally, you will need to take out a mortgage of at least half of its cost.
Guarantor mortgages scheme
If parents wish to help their child purchase a home they can look into a guarantor mortgage. Essentially, this entails using either the parent's property or savings as security and guaranteeing any missed payments will be covered by them. Guarantor mortgages are a great solution for first-time homebuyers on more limited incomes who don't have the full mortgage amounts or even enough of a deposit. Plus, with some guarantor mortgages, you can borrow up to 100% of your property’s value! If you have a poor credit score you can also utilise guarantor mortgages. For example, without any proof of your debt management abilities, lenders may be more willing to offer you a mortgage if you can provide a guarantor.

How Much Deposit does a First time Buyer need?

The level of deposit a first time buyer needs relies on the property purchase price. The mortgage you will require will be a percentage of the property value (Loan to Value LTV). The lower percentage you put down represents a larger amount of risk to the bank or building society lending you the money.

For example:

Purchase Price £240,000

Deposit required £24,000 (10%)

Mortgage Amount £226,000 (90% LTV)

Purchase Price £240,000

Deposit required £48,000 (20%)

Mortgage Amount £192,000 (80% LTV)

The larger deposit represents less of a risk to lenders. The bigger the deposit also gives you access to more competitive mortgage interest rates.

To purchase a standard home you will require a minimum 5% deposit.

However it is possible to purchase a property currently with NO deposit. But this is only currently available with shared ownership mortgages. Shared ownership means that you will part own part rent. The help to buy scheme will allow you to own a percentage of the property and then pay rent, to the owner of the other part of the home such as a housing association.

If you are in the armed forces there is also a Forces Help to buy scheme, which will allow you to take an interest only loan of up to 50% of your salary. (Max £25,000) to help with a deposit. 

What will the Mortgage payments be? Other Costs to consider!

Your monthly mortgage cost heavily depends on the amount you are borrowing, the repayment type (Repayment mortgage or Interest Only), the interest rate and the mortgage term. Before buying, you will need to consider how much your first mortgage will cost to ensure its fits within your budget and gives you the lifestyle you need.

We recommend getting tailored advice from one of our Mortgage Advisers to work out how much your monthly payments will be, before making any decisions!

A fixed-rate mortgage if often the preferred choice for a first time buyer as it guarantees your repayments stay the same for a set period (usually between two and five years). Variable rate mortgages can change in line with the Bank of England or Lenders base rates, meaning it can go up or down at any time.

Let Us Handle Everything

At The Mortgage hive, we understand the entire process of buying your first home can be daunting. We are here to help guide you through it every step of the way, from finding a mortgage and calculating costs to guiding all available schemes - we've got your back!

Contact us today for more information or for assistance in securing your first home and understanding of the mortgage application process.

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Your Situation Is Unique
So Is Our Advice.

 

As you are just starting out, let us guide you through the process and make this an exciting, memorable experience from your initial enquiry to opening your front door for the very first time.