First-Time Buyer Mortgages

PFG Mortgages specialises in First-Time Buyer mortgages

 We are 100% independent and can advise on products
across the whole mortgage market

Our 5* rated team is always on hand to help

With you from application to completion and beyond

More than just Mortgages we offer advice on Insurance, Wills, & Investments

Please get in touch today for a no-obligation conversation about how we can help
find you the best mortgage for your needs. 

Thinking Of Buying Your First Property? It’s Difficult, But It’s Certainly Not Impossible Especially if you are a First Time Buyer, but with the help of our team of experienced Mortgage advisers it couldn’t be easier.

We don’t just help you secure the funding for your first home, we can help from application to completion and beyond. Your adviser will be your main point of contact, backed by a talented administration team, to help answer any questions you may have and smoothly process your application to completion

Why Should I Use A Mortgage Broker For My First Home?

We have the latest knowledge on Government schemes and access to special rates not offered directly by your bank or a lender.

The good news is that if you haven’t managed to put away that much money, then the government has introduced a raft of schemes specifically aimed at first time buyers which can help with that big deposit – and even reduce the overall cost of the property.

@HomeOwnersAll: “How much you can afford to borrow is usually calculated by taking three all important factors into account: salary, outgoings, and credit history. Lenders typically will lend 4 to 4.5 times your salary depending on your outgoings and credit history…Other income such as pensions, investments, or earnings that fall outside your main salary will also be considered.”

What Is Own New?

It is two mortgage products that can help people buy a newly built property with a smaller deposit or lower interest rate. Own New works with lenders and house builders to offer these products. They do not offer the mortgage themselves. To use Own New’s products, you will need to go through a broker who Own New has approved. Luckliy Premier Financial Group and PFG Mortgages have been approved by Own New.

Visit: https://ownnew.co.uk/ For More Information or speak to your adviser today

A new scheme aimed at helping first time buyers and local key workers buy their own home, First Homes offers discounts of up to 30% on the market rate of a property. Discounts in certain regions can even be as much as 50%.

You have to put down a 5% deposit of the cost of the property (after the discount has been taken off). To be eligible you have to be earning less than £80,000 per year (£90,000 in London).

The ‘shared ownership’ doesn’t mean sharing ownership with another individual, but rather buying a share of the property outright, the rest you pay in rent. You can buy as little as 10%  of the property’s value or as much as 75%. The idea is that you ‘staircase’ (i.e. buy more of it as time goes on) until you own the property outright.

To qualify you and your partner’s income (or however many of you are buying) must be less than £80,000.

You can look for a mortgage where the deposit is less than 10% of the property’s value and under the scheme, only pay 5% of it upfront as a deposit. You then get a mortgage on the remaining 95%. The scheme closes in December 2022.

Available only in England and Northern Ireland, this scheme allows you to buy a council or housing association home at a discount price, depending on how long you have been living there. You must have been a secure tenant for at least three years.

The initial discount is 35% for a house and 50% for a flat. But the longer you’ve been in the public sector property the higher the discount so after a decade it would be 40% discount for a house and 60% for a flat. You could end up with a discount of £82,800 (£110,500 in London).

Available for first time buyers, under the new flagship equity loan scheme, the government will lend you up to 20% of the cost of a newly-built home interest-free for five years. It’s 40% of the cost if the home you plan on buying is in London.

That’s great news if you haven’t had a chance to save up for long as it means you’ll only have to pay 5% of a 25% deposit upfront. Better still, you only start paying back that 20% in year six. That’s at 1.75%. The fee increases each year, based on RPI plus one percent.

You’ll also need a repayment mortgage from a high street lender such as Barclays, the Halifax, NatWest, Santander, Nationwide Building Society, the Post Office, TSB or Virgin Money.

Launched on April 1 last year and ending in March 2023, the new Equity Loan scheme has a regional cap for the value of the properties which qualify for the scheme. It was based on 1.5 times the regional rate. In London, for instance, the property you’re buying can’t exceed £600,000. In the South West, the figure is £349,000, in the West Midlands £255,600 and in the North East £186,100.

Note that Help to Buy equity loans are only valid for new build homes which have been built by a developer registered with the scheme.

Other Things to consider when purchasing your First Home

Our Mortgage advisers will be able to guide you through the following point and recommend solicitors making the whole process even easier, why not check out our 5*  Trustpilot reviews.

All costs stated below are estimated, actual costs will vary depending on your move.

 

You can expect to pay anything from £850 to £1,500 plus VAT at 20% for your solicitor or conveyancer. This is for all the legal work involved in drawing up the lease, transferring fees etc.

At the same time, they will add another £300 for searches to determine whether there are any long-standing underground works, such as mining, or local plans etc which could affect your property and its value.

Before you put a bid in for a property you will want to know if the building is structurally sound and the ground on which it is standing solid. You can find this out from a surveyor’s report. These come in various packages, from a basic survey for around £200 to a structural survey costing more than £600.

You can hire a removal firm for anything from £300 to £600 – but you can also get a white van and do it yourself to save some cash. If you do opt for a removal firm then make sure they have insurance. That way you’re covered if anything goes wrong and a major piece of furniture, such as your bed or a sofa gets damaged. Shop around too to get the best price; you’re also more likely to get it cheaper if you move mid-week than at the weekend.

What Next?

So if you are a first-time buyer looking to buy your first home then get in touch today! Buying can be made so much easier by choosing the right mortgage broker from the start. We can point you in the right direction in terms of which scheme will benefit you most. We can also recommend the best mortgage deal for your current and future circumstances and when your deal expires we will be in contact ahead of time to make sure that we can do all we can to help.

At PFG Mortgages we have a team of specialists in mortgages for First-time Buyers. We pride ourselves on our wealth of knowledge and experience, allowing us to find you the right scheme if available, we will then find you the best mortgage from across the whole market that fits with your situation.

We will then guide you for what we need from you to make sure your applications stand the best chance of being accepted. You can also speed up the process by having the following available upon request:

→ Last 3 Months Bank Statements

→ Last 3 Months Payslips

→ Valid ID for all applicants

→ Proof of deposits

Other things you can also do to help are; tidying up your credit score by closing down old credit cards, making sure you are on the electoral roll etc.

We recommend using the Checkmyfile link on our site for a 30-day free trial, which you can cancel online at any time, otherwise, it’s then £14.99 a month.

Check My File is the UK’s only Multi Agency Credit Report – see full credit report data from Experian, Equifax, and Trans Union all in one place.

Providing this report to your adviser will allow them to see if there are any areas that need to be addressed before we submit your application to the lender, making your mortgage application as smooth as possible

PFG Mortgages - Guide for First-Time Buyer Mortgages

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