First-time buyer mortgages explained
The world of mortgages can be a complicated one, especially if you're buying your first home. This guide explains everything you need to know.
1. Your initial deposit
Like the majority of buyers, you’ll need a deposit before you can apply for a mortgage. Typically, you’ll need to put down 10% as a first-time buyer, but this can vary from lender to lender.
The mortgage provider may also consider your application more favourably the more deposit you have and offer better interest rates for you.
2. Applying for an ‘Agreement in Principle’ (AIP)
You may want to first apply for an Agreement in Principle (AIP) or ‘Mortgage in Principle’ – with a mortgage provider to help you get a better understanding of how much you can borrow for your first property.
You can apply online and only have to provide a few details. The provider will run ‘soft credit check’ and if approved, the agreement or mortgage in principle is valid for up to 90 days.
This can not only assist you in your search for your first home, by allowing you to see what you can and cannot afford but help you to see if you may need to do a little more budgeting before looking to buy.
An agreement or mortgage in principle does not, however, ensure that you will be approved for a mortgage with a provider. You will still need to go through the entire approval procedure when you submit a legitimate application at a later time.
You can use our Mortgage Calculator to work out how much you can afford and to see how much the monthly payments would be for your dream property.
5. Support from Independent Financial Advisors
We work with independent financial advisors (IFAs) who can help you secure the right mortgage for you.
The New Homes Group can help you, a seller, our team, lenders, all have a clear understanding of your financial status. We therefore request that all potential buyers are qualified by The New Homes Group to help progress along their buying journey.
You can then of course proceed with The New Homes Group or use a provider of your choice. Here is some more information about The New Homes Group.
If you’d like to know more about this or you have an enquiry about our developments of quality new build properties, don’t hesitate to get in touch. You can find our contact details on this page.