First Time Buyer
Buying your first home is one of the most exciting things you can do-
But it is also one of the scariest. With loads to think about and constantly changing information about mortgages, rates and what you should and shouldn't do.
Unless you're really lucky, you are going to need a mortgage of some sort. This loan will be with you for a long chunk of time, so it's worth taking advice from a qualified mortgage adviser.
We love arranging mortgages for First Time Buyers and take pride in making sure we make your move as stress free as possible.
Our consultants will discuss all aspects involved and will use our knowledge and expertise regarding lenders criteria to determine if they are a suitable option. We will explain the types of products available and the effect on the repayments depending on the term.
Frequently Asked Questions:
What is a mortgage?
All mortgages work in the same way, you borrow money from a lender over your chosen term and within your monthly payments you pay back the interest that you owe.
The amount you pay back each month depends on a few things:
- How much you borrow
- How many years you borrow this amount over
- The interest rate you obtain
- Whether your mortgage is on an interest only or repayment basis
What is the difference between repayment and interest only mortgages?
Most mortgages are arranged on a repayment basis, this is where with part of the interest you owe, you also repay an amount towards the capital that you have borrowed.
On a repayment mortgage, you will have repaid the original amount that you borrowed plus the interest by the time you come to the end of your mortgage term. You will then own your home outright.
With an interest only mortgage, you will only pay the interest accrued over the mortgage term which means that once the term ends you will still owe the original amount that you borrowed.
One of the advantages of an interest only mortgage is that the monthly repayments are usually lower than a repayment mortgage, however you will need to ensure you have a repayment strategy to repay the balance once you reach the end of your mortgage term.
Our advisers can assist you on the acceptable repayment strategies for our lenders
What is the difference between fixed rates and variable or tracker rates?
Fixed rate mortgages:
With a fixed rate mortgage, you pay a fixed rate of interest for a set term. This means your monthly mortgage payments will be the same every month, regardless of whether or not interest rates increase on the wider market.
This also means you will be locked into your fixed rate deal and cannot benefit should interest rates fall, and you will be charged an early repayment charge (ERC) if you want to pay off your mortgage and switch to a new deal before your rate ends.
Variable rate mortgages:
If you have a variable rate mortgage, this means that your monthly payments can go up or down over time.
Most lenders will have a Standard Variable Rate (SVR), which is the rate charged when any fixed, discounted or other type of mortgage deal comes to an end. There are usually no Early Repayment Charges (ERCs) if you want to switch away from your lender’s SVR.
Tracker rate mortgages:
Tracker rates usually track the Bank of England base rate (BBE), plus a set percentage, for a certain period. If the base rate goes up, your mortgage rate will increase by the same amount, and if the base rate falls, your rate will go down.