If you’re thinking about buying your first home you’re probably finding the whole process of choosing the right mortgage and actually buying essay writing service your ideal home rather daunting? So what do you need to know to get on to the first rung of the property ladder?
The first step is to contact us and we will advise you on the mortgage options available to you.
In the meantime we’ve outlined below some background information on mortgages for first time buyers that we hope you’ll find useful.
How much can you borrow?
The amount of mortgage you can get depends on your affordability.
As a rough guide, a typical multiple is four fast essay writing service times your income. This figure could be higher or lower depending upon your individual circumstances and different lenders’ criteria. All lenders will lend based on affordability and all lenders offer Affordability Calculators on their websites.
Once you add to this the amount that you can afford to pay as a deposit, you have the amount you can pay for your first property.
Some lenders offer very good deals for first time buyers, so it always worth asking us to research the market on your behalf.
Any other costs?
It is also worth remembering the additional costs, on top of your deposit and mortgage that you will be expected to pay.
For example, Stamp Duty
Stamp duty is tiered, you will pay a different stamp duty rate on different portions of the property value. When you buy a property you’re planning to live in (ie not a buy-to-let property or second/holiday home), you won’t pay any stamp duty on the first £125,000. You’ll then pay 2% on the portion up to £250,000, and 5% on the portion up to £925,000. Between that point and £1.5 million, it’s 10% – then 12% on anything over £1.5 million. See stamp duty calculator in Useful Links.
Plus you will have to pay for the survey and the valuation of the property, and solicitor’s fees.
You may also have to pay an arrangement fee to the lender for the mortgage.