First Time Buyer Mortgages: A Quick Guide to Getting Started When Buying Your First Home

If you're looking to buy your first property, it's not unusual to feel a mixture of excitement and panic. This guide sets out the basics of how to get started.

Can I afford it?

The first thing to do is work out what you'll need. First-time buyers often come in with a 10% deposit, so it helps to get a rough idea of how much you could borrow. You also need to be honest about whether you can afford the long-term commitment, and to check that your credit file is in good shape. Getting a mortgage decision in principle early on gives you a clear sense of where you stand.

What can I do to improve my chances?

There are practical steps that make approval more likely:

• Work with a mortgage adviser for expert guidance and access to the whole market.
• Check your credit score and see whether there's anything you can do to improve it.
• Check whether you're eligible for any government schemes — a Lifetime ISA, for example. Schemes open and close over time, so check what's currently available.
• Build the biggest deposit you reasonably can. It opens up more competitive rates.

How can I build a deposit?

Saving a deposit comes down to budgeting for day-to-day life and keeping unnecessary spending in check. A Lifetime ISA can top up what you save with a government bonus. Some people find savings challenges help with motivation; others take on extra work to lift their income. Whatever route you take, consistency does most of the work.

What will it all cost?

There's no cheap way to buy a home, and the deposit isn't the only cost. Budget for:

• Conveyancing fees
• A homebuyer survey
• The valuation fee
• Land Registry fees
• Stamp duty, where it applies
• Any mortgage broker fee
• Moving costs
• Buildings insurance

What's the process of buying a home?

There may be several months between finding a property and moving in. Here's the outline:

• Speak to a mortgage adviser, if you want to work with one.
• Get an agreement in principle so you know your approximate budget.
• Start viewing properties.
• Make an offer.
• Once your offer is accepted, instruct a solicitor to act for you.
• Submit the full mortgage application to the lender.
• Wait while the lender and underwriter work through it.
• Have a surveyor carry out a survey on the property.
• When the mortgage offer arrives, check the paperwork carefully.
• Agree a completion date with your solicitor.
• Exchange contracts and pay your deposit.
• Sign the transfer deeds; your solicitor requests the mortgage funds.
• Receive the title deeds.

That's a very basic overview — there's a good deal more detail behind each step, and points along the way where things can get complicated.

Get help and it all gets easier

An experienced adviser knows the whole process inside out and can support you at every stage. We advise first-time buyers across Lancaster, Morecambe and the surrounding area. Give us a call on 01524 888877 or email advice@pbsfinancial.co.uk to find out how we can help.