UK FIRST TIME BUYER HOME MORTGAGE

A first time buyer home mortgage is available to someone who has never owned a home before and most lenders also extend the definition to a couple when either both or one of the two has never owned a home before. Many high street lenders offer special deals to those who are buying their first home however there are also many hidden deals and special offers available to borrowers that are not available on the high street from niche lenders who do not carry the same overheads as the big financial institutions. We operate a comprehensive database of lenders who will provide a quotation and we can obtain extremely competitive interest rates for you no matter what your personal circumstances or previous financial history. Just call our 24/7 quoteline or complete and send our contact form to obtain detailed information on the best product available to satisfy your needs including interest rates, repayment periods and the lenders terms and conditions.

Prior to making application for a first time buyer home mortgage you should make sure that your credit references are in order (and also that your partners are in order) and that there are no errant entries that have nothing to do with you. The two main credit reference agencies that most lenders use are Experian and Equifax both of whom must make their file on you available for examination. You should very carefully check all of the information and if there are any errors you should ask for them to be corrected. It is important for a partner or spouse to also do the same as even though the loan may be proposed in only one name the lenders may consider those who live together to be ‘financially associated’ and late payments, defaults and CCJ’s of one partner could affect the other partners application.

Matters which are taken into account by lenders in a first time buyer home mortgage application may include :-

• Lenders are more willing to extend special deals and low interest rates to those who have a good credit record. To this end they will enquire with the credit reference agencies. Those who have a poor financial record of defaults or CCJ’s may find themselves paying slightly higher interest rates however if the loan is to be secured on property by way of a mortgage then the increase in interest rate may only be marginal.
• The overall income of the family members may be taken into account and if the loan is to be in joint names then both incomes will be aggregated before the multiplier is applied to work out the maximum loan available. Lenders may also be interested to hear if any other family members contribute to household expenses.
• It will be necessary to declare and disclose all other financial commitments on the loan application as the lender will want to be sure that there is sufficient disposable income to service a further loan.
• The value of the property and the amount of the deposit are important as the lender will want to be assured that his loan is safe and that the security offered is sufficient to cover it in the event of default. Clearly the higher the deposit then the greater is the security offered to the lender. Having said that we do have lenders on our panel who are prepared to offer 100% loans however the lowering of the lenders security may be reflected in the interest rate.