Imagine Finance
First Time Buyer Mortgages
Make buying your dream home a reality with Imagine Finance
Buying your first property is exciting, but we appreciate it can be daunting, too. For many people, it’s the biggest purchase they will make in their lifetime.
Frequently Asked Questions
How do I get a mortgage as a first time buyer?
First time buyer mortgages are available to borrowers who meet certain minimum criteria.
Lenders will want to know that you have enough money coming in each month to be able to afford the repayments. (The biggest mortgage you can get will usually be around 4.5 times your income.) They will also look at your credit history, your outgoings, and the size of your deposit.
Once you have your mortgage in place, you make monthly repayments, with terms available for up to 40 years.
What is an Agreement in Principle?
This is an initial decision from your chosen lender stating that you are likely to be able to get a mortgage for a particular amount.
You should obtain this before making an offer on a property. Once your offer has been accepted, you can then make a formal mortgage application.
How much will I be able to borrow?
This is dependent on different factors, from your monthly income to your deposit.
The size of your deposit makes a big difference as first time buyers typically need to put down at least 10% of the value of the property. If you can, it’s best to pay as much as possible upfront to keep interest rates down.
Also remember that stamp duty may be payable – use our stamp duty calculator to find out more.
What are the different types of first time buyer mortgages available?
- Fixed rate mortgages: have an interest rate that doesn’t change, for an agreed length of time. They are predictable, which means you can budget for your mortgage repayments without worrying about any big surprises.
- Tracker mortgages: have a variable rate of interest. This can go up or down following the Bank of England base rate, so you may get a better deal, or you may end up paying more.
- Guarantor mortgages: have a third party added to the mortgage agreement – often a parent or guardian. This person guarantees to cover the repayments if you can’t pay them yourself.
- Joint mortgages: are shared between two or more people. You can get a joint mortgage with anyone – a spouse, relative or friend. But it’s important that they are trustworthy, as you will be liable for their repayments if they default.
What other fees might I have to pay?
A lot of work happens behind the scenes to make your dreams a reality, so remember to factor in extra expenses such as stamp duty, valuation fees, broker fees and solicitor’s fees.
Coming to Imagine Finance directly could save you money and, more importantly, we do not charge any upfront fees.
What else should I consider?
How will you support me through the process?
Here at Imagine Finance, we’ll always guarantee to find you the best possible mortgage terms for your circumstances.
Do you charge any upfront fees?
For expert first time buyer mortgage advice and a friendly voice you can trust, speak to one of our team today and start turning your dreams into reality.
Mr Wells
