First Time Buyer Mortgage Broker

First time buyers will often find that mortgage providers can be cautious about lending to people not currently on the property ladder. However, as long as you’ve met their affordability criteria, these companies will be likely to offer you a property loan. 

Each mortgage lender will prioritize different elements of your application. Depending on the company, your application could be mainly based on your annual earnings or your credit score. Before you begin the process of buying a property, your first time buyer mortgage broker will ask you to ensure you’ve done the following things:

The higher your deposit saved, the more likely you are to have your mortgage offer accepted. The minimum is 5% of the property, so anything lower and you’re highly likely to be rejected, which can impact your future mortgage applications.

However, if you can approach a lender with 10-15% of the purchase price, you’ll find that you’ve got a lot more options available.

Saving 20% or above would be hugely beneficial to you in the long run, as you’ll have access to the best lenders as well as much lower interest rates.

On occasion, you can actually buy a property without a deposit. We don’t advise this, however, as you’ll have to borrow the amount on an unsecured loan, meaning you’ll have to prove that you’re financially capable of paying off both loans.

You will also need to display that your income is enough to both cover your monthly mortgage payments and your living costs. As your mortgage payments will begin immediately once you’ve been accepted, you will need to prove that you’ll be reliable in meeting them.

An Agreement in Principle (AIP) is the first step in getting a mortgage. It’s designed to give you a clearer understanding of both how much you can borrow and which properties you can afford. Lenders will frequently enquire about your AIP as it’s a clear indicator of your intention to buy.

Once you have an AIP, you can make a full mortgage application. To apply, you’ll need to provide the bank with your income and outgoings as well as your addresses for the last three years. This process involves a soft credit check, however, this will not affect your credit rating or ability to borrow money in the future. Not all lenders have a soft footprint.

With a first time buyer mortgage broker, you’ll receive support and guidance that can be vital in helping you secure your first property. We can help you through the entire process by helping with any concerns you have and also liaising with a number of third parties involved, including accountants, solicitors and conveyancers, to aid your application.

As your dedicated first time buyer mortgage advisor, Sherwood Mortgages will help you buy the property you’ve been looking for by using your eligibility criteria to find quotes by the lenders most likely to make you a mortgage offer.

If you’re a first time buyer looking for advice on how to get onto the property ladder, Sherwood Mortgages are the brokers for you. We use our expertise to take away the stress when applying for a mortgage, all whilst making sure you’re getting the best deal for you.

To start your journey, contact us today and a member of our team will be in touch as soon as possible to offer you a free personal assessment consultation.

Your credit score is one of the key elements that build your application for a mortgage. If you have a poor credit history, you should always take the necessary steps to boost your score.

As a first time buyer, you may still be able to find a lender willing to offer you a mortgage to buy your first home. These are called Adverse Credit Mortgages and look into a range of different factors that have affected your circumstances.

Buying a property involves more than just paying the mortgage alone. Your first time buyer mortgage broker will inform you of all the extra costs you’ll need to pay in the process. These costs can include:

• Occasional legal fees
• Property searches and surveys
• Mortgage arrangement fees
• Stamp duty and home insurance
• Conveyancing services

Once you own your home, it’s important to take out buildings and contents insurance in order to keep all your assets and possessions safe. The cost of this insurance depends on your house’s value and the area you live in. There are also several extras you can add to your policy including damage cover.

In case of adverse circumstances including you becoming ill, being unable to work or even death, it’s important to take out a mortgage protection policy to ensure your home is taken care of.