First Time Buyer Mortgages

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First Time Buyer Mortgages2020-06-11T15:26:42+00:00

FIRST TIME BUYER MORTGAGES

Looking to buy your first home? We can help…

Mortgage Brokers in Bristol.

If you are a first time buyer in Bristol, the prospect of buying your first home will more than likely be daunting and confusing before it becomes exciting. At Lloyd Wells Mortgages, our aim is to give you clear advice so that you can move into your first home as quickly and as painlessly as possible.

Your mortgage is the largest financial transaction you will make, so it is vital that you seek the right advice. We’re delighted to be first choice for our clients who are looking for their first mortgage in Bristol. Our clients trust us because we keep the jargon at bay – we don’t want this to be a stressful time for you so we liaise with the lenders, estate agents and solicitors, allowing you to focus on the next exciting chapter in your life. We always have time to answer your questions and to support you!

Once you contact us, Pete or Adam will discuss with you your current circumstances – how much you can afford and how much money you have for your deposit. We will also need to know your current employment status, how much you earn and your credit history. This information is key to determining what type of mortgages we will recommend. Get in touch so that we can save you time and save you money and make the process as easy as possible.

We have written two blogs for First Time Buyers:

10 Questions for First Time Buyers

Can My Parents Loan Me a Deposit as a First Time Buyer?

If you are a first-time buyer, the prospect of buying your first home will more than likely be daunting and confusing before it becomes exciting. At Lloyd Wells Mortgages, our aim is to guide you through the transaction from start to finish so that you understand what to expect and how much it will cost.

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Your mortgage is probably the largest financial transaction you are likely to make so it is vital that you seek the right advice. We’re delighted to be first choice for many clients who are looking for a first mortgage in Bristol; our customers trust us because we appreciate that they haven’t been through the process before. We keep the jargon at bay – we don’t want this to be a stressful time for you so we liaise with the lenders, allowing you to focus on the next chapter in your life. We always have time to answer your questions and to support you, until we get the fantastic news that you have completed!

Once you contact us, Pete or Adam will discuss with you your current circumstances – how much you can afford and how much money you have for your deposit. We will also need to know your current employment status, how much you earn and your credit history. This information is key to determining what type of mortgages we will recommend.

Complete the form to get in touch

Unlike other mortgage brokers, we have excellent existing relationships with lenders and can access the whole of market so we can find you an attractive deal based on what you can afford. Make sure you choose the right lender for you – a genuine broker will explain all the terms to you in detail as many times as you need.

To discuss your first time buyer mortgage or for some friendly advice, contact us today.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Frequently Asked Questions

Below are some of the most frequently asked questions about first time buyer mortgages.

What mortgages are there for first time buyers?2020-04-26T12:24:34+00:00

The mortgage market changes all the time, not just in terms of mortgage deals and regulation but also in the way lenders assess mortgage applications. We pride ourselves on being up to date with regulation, legislation and the economic market so we can pair this knowledge with your circumstances and match you to lenders. Current first time buyer mortgages include:

HELP TO BUY – EQUITY LOAN – FOR NEW BUILD PROPERTY

This is only available to buy a new build home. The most you can borrow is £600,000.

This is how it works. The government lends you up to 20% (40% within Greater London) of the cost of a new home, you add a 5% deposit, and borrow the other 75% from a lender. For example, a £200,000 home will break down as:

  • A DEPOSIT FROM YOU OF £10,000
  • A LOAN FROM THE GOVERNMENT OF £40,000
  • A MORTGAGE FROM A LENDER OF £150,000

The attraction of this scheme is that the government loan is interest-free for the first five years.

LIFETIME ISA (‘LISA’)

What is a Lifetime ISA?

  • A Lifetime ISA gives you flexibility in how you save and invest for your first home or later life.
  • The Lifetime ISA is available to anyone aged between 18 and 39.
  • The money can be invested in the stock market or you can save cash, just like any other ISA. The money can grow free from UK tax. The government will contribute 25%, up to £1,000 per year.

How Much can I contribute to a Lifetime ISA?

  • The Lifetime ISA allows you to contribute up to £4,000 each tax year. The government will add a further 25%. In effect, for every £4 you save, you will receive an extra £1, up to £1,000 per tax year.
  • Although you need to be aged between 18 and 39 to open a Lifetime ISA, you can still pay in and receive the government bonus, up to age 50.

Taking money out…

  • 12 months after you make your first payment, you can use the money in your Lifetime ISA to purchase a property up to £450,000. Alternatively, you can wait until you’re 60 and release the money then.
  • If you want to withdraw the money before you’re 60, the government usually charge a 25% penalty. This would leave you with less than you originally put in.
How do i get on the property ladder?2020-04-26T12:28:45+00:00

The property ladder isn’t out of your reach. At Lloyd Wells Mortgages, we believe that there is a mortgage for everyone. There are definitely advantages to being a first time buyer; interest rates are currently very low (often go in your favour?) and first time buyers are more appealing to sellers because they are not in a chain. Chains can slow down purchases and even collapse, so you have strong leverage when it comes to buying your first home. Before you can get on the property ladder you will need a deposit in order to get a mortgage (there are a number of 95 per cent mortgage deals around- what does this mean in simple terms?). We can advice you best once we know your deposit figure and financial situation.

How do lenders assess a first time buyer? What is an affordability check?2020-04-26T12:29:42+00:00

When looking at the property you want to buy, potential lenders will look at the type of home, its condition, access and location. They will also want to conduct an affordability check. This is where they investigate your finances (bills, income, debts etc). Many first time buyers are put off that lenders look at your history of managing credit and your bank statements but it is better that lenders focus on affordability and expenditure rather than the traditional approach of simply multiplying your annual personal (or rental) income by a pre-set multiple to get a maximum lending amount.

What is a mortgage in principle or an agreement in principle?2020-04-26T12:30:27+00:00

When you or your mortgage broker approach lenders, they will offer you a Mortgage in Principle (MIP) or an Agreement in Principle (AIP) if you don’t have a property to buy yet. A Mortgage/Agreement in Principle lets you, potential sellers and other lenders know that you can afford a mortgage. It’s also helpful for narrowing down your house search to what you can afford. A soft credit check takes place for this.

Testimonials

Excellent guys who made the process simple and understandable. Pete was in constant contact throughout and always kept us in the loop with any changes. Easy to talk to and didn’t mind answering the ‘silly questions’! I will 100% be using them in the future.
RYAN & LAUREN HARRIS
As a first-time buyer I was pretty clueless about the mortgage process. Lloyd Wells Mortgages have helped me navigate the house buying process step by step and provided options that have allowed me to get a foothold on the property ladder.
ROB OTTEY
Pete was superb when sorting my first time buyer’s mortgage. I never had a problem contacting him and was grateful for Pete’s patience in explaining the details of all the choices I had available. His professionalism is second to none and I’d never have ended up with such a good deal without Pete’s hard work. I would highly recommend using Lloyd Wells Mortgages. I’ll certainly be in touch when remortgage time comes round.
BEN CHERRY