First time buyer guide

Congratulations! You are taking your first steps on the property ladder by becoming a first time buyer. After deciding to buy your first home, the process of getting a mortgage can be a little daunting.

In fact, it is probably the biggest financial commitment you are ever going to make.

The help of a mortgage advisor can take the pressure off you. So it is probably wise at this point for you to find a local mortgage advisor who knows the market and understands exactly what you need to do.

Saving for a deposit

Before you begin, you need to have a saved a deposit. Keep in mind that the smaller the deposit, the less mortgages there will be available for you. Then you can find out how much money you can borrow.

In most cases, you will need to try and save between 5% and 20% of the cost of the home you would like to own. For example, if you want to buy a house that costs £130,000, you will need at least a £6,500 deposit saved before you begin.

The more you save, the more mortgage options you will have. If you do have a small deposit, there are first time buyer mortgage schemes available such as help-to-buy.

Budget for the other costs of buying your first home…

You will also need to budget for additional costs of buying a home such as:

  • survey costs
  • solicitor’s fees
  • mortgage arrangement fees
  • valuation fees
  • building insurance
  • decorating, furniture and all the essentials
  • stamp duty

…And don’t forget your monthly repayments

You must be entirely sure that you are financially ready for the commitment of your first mortgage. Along with all the above, you must pay monthly repayments – lenders will also be checking to ensure that you are going to be reliable enough to borrow from them.

Use our mortgage calculator to find out what your monthly repayments are likely to be (once you know the interest rate you will pay, too).

Finding and applying for a mortgage

There are so many mortgage deals on the market, which is why we think it’s best to work with an independent mortgage advisor. They can look at multiple options and scour the market for the best one for you.

Whichever you apply for, the lender will put you through strict checks to ensure that you will be able to repay.

As part of the mortgage application process, you will need to prove evidence of outgoings and income, debts, bills – and even provide payslips and bank statements. You will also need to prove other costs and expenditure (such as travel or childcare).

If you are self-employed, you will be asked for tax returns and accounts going back two years.

If you feel like you are ready to take these steps, make sure to contact a Linear advisor to start the process of applying for your first mortgage. We can also advise on help-to-buy schemes or guarantor mortgages – making sure you are on the right path to buying your first home.

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Your property may be repossessed if you do not keep up payments on your mortgage. Linear charge a non-refundable mortgage arrangement fee of between £399 and £999 when an application is submitted to a mortgage lender for you. Your adviser will agree the arrangement fee with you before commencing any chargeable work. The actual amount payable will take account of your financial circumstances, the complexity of borrowing requirements and the amount of work required to fulfil your needs.