First Time Buyer

First Time Buyer

If you are a first time buyer, you may find buying your first home a little daunting. Once you have finally saved enough for that deposit and found the right property, you then start finding out about the extra costs involved and for many a first time buyer, stamp duty comes as a bit of a shock.  Remortageus recognise that it is important for you to have your questions answered. With this in mind we have put together some questions that crop up frequently and hope you will find the following useful:
1. How much do you offer for the property you have found?
2. How much will the mortgage cost me?
3. What mortgage adviser shall I use?
4. What solicitor do I use?
5. What other costs will I incur?
6. How much can you borrow?
When you have found a property you like, it can be useful to look at sites like zoopla.co.uk and nethouseprice.com to get an idea of the sale prices of houses in the local area. You can usually work out what would be a reasonable offer using these sites. The next step is to see what the monthly mortgage cost will be and whether this is affordable for you, there are tools on this site you can use to help you here. Go to our calculators page to use our mortgage repayment calculator or if you want to see what mortgage lenders are available, go the the find me a mortgage page. Remortgageus recommend that you take independent mortgage advice and our experts are waiting to help answer any questions you may have or help with your mortgage enquiry now. They will help you choose a solicitor and will discuss what other costs you need to consider.

How much can you borrow?

The amount of mortgage you can get depends on your income.  Some lenders use a multiple of your income others look at how much you can afford based on your income and outgoings.  As a rough guide, a typical multiple is four times your income. This figure could be higher or lower depending upon your individual circumstances and different lenders’ criteria. Lenders who look at what you can afford base this on the number of people and any loans or debts that you have outstanding.  Some lenders offer very good deals for first time buyers, so it always worth asking your Independent Mortgage Adviser to research the market on your behalf.

What other costs do you need to be aware of?

It is also worth remembering the additional costs, on top of your deposit and mortgage that you will be expected to pay.

Band Existing residential SDLT rates New additional property SDLT rates
£0 – £125k 0% 3%
£125k – £250k 2% 5%
£250k – £925k 5% 8%
£925k – £1.5m 10% 13%
£1.5m + 12% 15%
Percentage is for whole purchase price, not per band.

Plus you will have to pay for the survey and the valuation of the property, and solicitor’s fees.

You may also have fees to pay to the lender for your mortgage.  These could be an arrangement fee and/or booking fee.  Ask your Independent Mortgage Adviser how much these fees may be.

Click here to contact one of our expert independent mortgage advisers from 1st Call 4 Mortgages (UK) Ltd, for free mortgage advice. 1st Call 4 Mortgages (UK) Ltd is authorised and regulated by the FCA.