First Time Buyers, What You Need to Know
Thinking Of Buying Your First Property? Good For You! It’s Difficult, But It’s Certainly Not Impossible – Especially If You’ve Been Saving Up For Some Time For That All-Important Deposit.
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.
Some of the Government Schemes To Get You On The Ladder Include; Help to Buy, First Homes, Right to Buy, Shared Ownership & Mortgage Guarantee Scheme
Plus we look at other costs associated with moving home, such as Solicitors fees, Valuation costs and Moving costs, helping you be more prepared and able to budget for these expenses.
HELP TO BUY MORTGAGES
Help To Buy Scheme: Equity Loan (2021-2023)
If you’re a first time buyer planning to buy a new build property, the Help to Buy Equity Loan is there to help you. Depending on where you’re buying and the cost of the property, you could be entitled to a low-cost Government loan, which is interest-free for 5 years. The new scheme will run until March 2023. As with the previous scheme, the government will lend homebuyers up to 20% of the cost of a newly built home, and up to 40% in London.
For a competitive flat fee, our advisers can help with the whole process, right up until you’re moved into your brand new home. They’ll guide you through the Help to Buy process, help you to secure your mortgage and deal with all of the other aspects of buying a house on your behalf.
To find out more, watch this simple video or ask to speak to one of our advisers today.
Having access to the Whole Mortgage Market and no affiliations to any specific lenders, our expert Mortgage advice is completely independent and specific to your requirements
Types of Mortgage Products available:
- Fixed-rate mortgages
The interest rate is fixed for the term of the Mortgage usually between 2 -10 years, so your repayments for the term will remain the same, ideal if you need to budget your monthly outgoings.
- Variable-rate mortgages
The interest rate of your chosen bank or building society’s is tied to the base rate of the Bank of England. This means that the interest rate, and your payments, can fluctuate during the mortgage term. So you could pay less or more every month.
- Tracker mortgage rate (Tracker)
Tracker mortgages are tied directly to the Bank of England base rate plus a set percentage. So if the base rate was 1% and the set percentage was 1.5%, you’d pay 2.5% interest on your monthly payment. The mortgage payment changes with this base rate, so you could pay less or more each month.
- Discount mortgage rate
These also have a variable interest rate and is based on the standard variable rate (SVR) set by your lender. These terms usually last 1 – 5 years. If rates drop, so will your repayments. But like all variable rates, they could also rise and increase your outgoings.
- Standard variable rate mortgages
A standard variable rate mortgage (SVR) is what your lender will switch you to when your introductory period or any other follow-on rate periods end. Each bank or building society sets its SVR. It tends to be a higher interest rate compared to other types of mortgages. An SVR is the default interest rate you’ll be charged until you complete a new re-mortgage deal or pay off your mortgage in full.
- Offset mortgages
probably the most complex type of mortgage rate. An offset mortgage links your savings to your mortgage deal. You pay less interest on the debt as the interest you’d get from your savings is used to offset the mortgage interest. An offset mortgage is available on fixed or variable rates and can be seen as a great way to pay off your mortgage quickly.
- Interest-only mortgages
Where you only pay back the interest on the loan you’ve borrowed each month. When your mortgage term comes to an end, you will still owe exactly what you borrowed at the start. This type of mortgage is not widely available since there is a risk of your home getting repossessed if you’re unable to keep up with the payments. You should only choose this option if you know exactly how you will pay it back when the term comes to an end and can show evidence to the lender of a repayment strategy.
First Time Buyers | Help to Buy Mortgages
Designed for those looking to get on the property ladder and buy their first residential property. The government currently have a few schemes available; the First Homes scheme & the New 95% Mortgage Scheme as well as some lenders will offer incentives to help buyers, these could be cashback promises, help towards legal fees or free valuations. Speak to one of our qualified Mortgage Brokers today to talk through the options available to you.
Small Deposit Mortgages | 5% Deposit Mortgages
The introduction of a mortgage guarantee scheme with deposits of just 5% LTV rate (Loan to Value) very much aimed at first time buyers however, other people might be able to benefit from these low deposit mortgage schemes, Get in touch today to see what your options are.
Home Mover Mortgages | Porting a Mortgage.
Porting a mortgage means taking your current mortgage deal with you when you move home. Speak to one of our advisers today to discuss the options available to you
Buy To Let (BTL) Mortgages
Suitable for those looking to invest in a property to rent out to tenants rather than live in it themselves. Like other mortgage types, it’s a secured loan that used against the property that is going to be rented out, usually for this type of mortgage you will require a minimum 20% deposit, speak to one of our expert advisors today to discuss the options available to you.
When your current mortgage deal changes, this is usually because you are switching to a new lender or taking out a different deal with your current lender. It is worth considering a deal from your current lender however, other lenders might offer even cheaper deals than your current lender. At Premier Financial Group we will contact you before your current Mortgage terms is due to end usually, you will have also received a letter from your lender offering you their latest deal, We can help you with this process and look at the other lenders in the market to see if there are any better deals out there for you.
Other Types of Mortgages Available
- Self-Build Mortgages
- Self-Employed Mortgages
- Contractor Mortgages
- New Build Property Mortgages
- Debt Consolidation Mortgages
- Bad Credit Mortgages
- Poor Credit Mortgages
- Commercial Mortgages
- Commercial Re-mortgages
- Commercial Buy To Let (BTL) Mortgages
- Product Transfers
- Further advances
- Equity Release / Lifetime Mortgages
- Secured Loans
- Bridging Loans
- Bridging Mortgage Finance
- Retirement interest-only mortgages
To discuss any of the options above or need advice on your current Mortgage please contact our team
We have access to the Whole Mortgage Market, and we have no affiliation to any specific lenders, so our Mortgage advice is completely tailored to your requirements.
Your Mortgage Advisor will stay with you throughout the whole process and will be in contact just before it comes to the renewal.
We offer more than just Mortgage advice, we have a whole range of financial services available with discounts for new and existing clients, when purchasing more than one service from us. Choose from a whole range of, Life insurance & Protection cover, Investments & Pension Advice, Wills & Lifetime Planning.
No call centres here
We are just a phone call away, if you have any questions about your mortgage application, or life insurance policy, or any service that you have purchased from us we are happy to help resolve these for you. In most cases you will be able to speak to the Advisor or Administrator that has been dealing with your case, giving you accurate response to your queries.
We can arrange to meet at our Norwich Office or at your address if you are within our catchment area around Norwich or we can meet online via Teams or Zoom.
To discuss the options available to you please contact our team
Premier Financial Group is one of Norfolk’s leading independent financial services providers. Being independent means that we’re not tied to any one lender, so we can offer you the very best mortgage deals from across the whole market.
Whether you’re a first time buyer and want to use the Help to Buy scheme, a landlord looking to buy to let or are looking to remortgage your current property, we offer the competitive solutions you want and the expert advice you need.
Our expertise means that you won’t get a better mortgage deal anywhere else.
To discuss the options available to you please contact our team