First Time Buyer Options
Becoming a homeowner is a life changing and significant step forward. There is a lot of negative press about how hard it is to buy your first property. The reality is that buying your first home is a great thing to do and there are a number of ways we at Opes FP can help you do it.
Typically in the UK a minimum deposit if 10% is required, although mortgage terms start to get a lot more attractive with a deposit of 15% or more. There are also a number of potential government, bank and builder backed schemes available to assist you in gaining your place on the ladder.
Each lender looks at how much they are willing to lend you slightly differently and this will depend on your credit score and circumstances. However, as a guide our affordability calculator would be a good place to start. Should your current income not be high enough to meet the affordability requirement there is also the possibility of a guarantor mortgage where a family member can use their spare income to support your loan.
There are also a number of associated costs when buying property. These costs are in addition to the deposit funds and include stamp duty land tax, legal and valuation fee. Some mortgage lenders include the legal and mortgage valuation fees as part of their first time buyer offerings and a few lenders will look at adding stamp duty to the mortgage amount to preserve your deposit.
You may have seen that there are a number of first time buyer schemes in the market. To see if these schemes are available to you and what is potentially better for you please contact us.
However, as a guide here are a few of the potential schemes available to you.
Help To Buy (New Build) - This is a government scheme which is available on all qualifying new homes in the UK up to a value of £600,000. The scheme works by the UK government giving an interest free equity loan of 20% of the purchase price, you taking a 75% mortgage and giving just a 5% deposit.
Help To Buy (Mortgage Guarantee) - This is a government scheme which is available on all existing homes in the UK up to a value of £600,000. The scheme works by the UK government giving a mortgage guarantee to the lender for 15% of the purchase price thus decreasing your risk. You then take a 75% mortgage giving just a 5% deposit.
For more information please see the guide in the Calculators and Literature section. There are other schemes available but please do not hesitate to contact us to discuss these. Below are some standard market leading first time buyer rates: