Being a first time buyer and making your first large financial commitment, it can be a rather daunting prospect. Let us help.
It’s quite possible that you’ve already spent years saving up for the deposit for your first home and with lenders changing the percentage of deposit criteria on a regular basis, you are probably wondering if you will ever get on the ladder.
At Sheffield Money, this is a market we know extremely well. So, if you’re still saving, or have been lucky enough to receive support from your relatives, then talk to us before setting out on your house-buying journey.
There are lots of schemes available for first time house buyers, such as the shared ownership scheme, which you could possibly take advantage of.
The more deposit you have, the better, as a higher deposit will generally attract a lower mortgage rate. However, do talk to us, because mortgage products change rather often these days and the percentage deposit you need will vary.
Mortgage lenders will generally have a maximum LTV (loan to value) that they’re prepared to offer you. For example, if you’re looking at a property with a value of £200,000 and the lender offers you £180,000, this means your LTV is 90%, so your deposit would be 10% which equates to £20,000.
When saving for your deposit, don’t forget to save extra for things like solicitor fees, surveys, stamp duty, home insurance, removal costs, mortgage arrangement fees, etc.
You will find that the estate agent who is arranging your property purchase will want to see an ‘agreement in principle’ (AIP) or ‘decision in principle’ (DIP) to ensure that you can obtain a mortgage. This is something that we can provide you with. Please note – this will depend on your circumstances and will be subject to further underwriting from the lender if you decide to proceed.
Only the full mortgage application and assessment along with a property valuation will determine if your mortgage is offered. So whether you are looking on the open market or a new build, give our experienced team a call to book in to discuss this further.