First Time Buying

Advice for the first time buyer

You may find buying your first home a little bit daunting. With the challenge of finding your first property, choosing the right mortgage, selecting the best solicitor and making sure the whole process runs smoothly, you may find the information below useful to help you achieve the first rung of the property ladder.

The first step is to contact us at Blestium Financial Services and we will advise you on the mortgage options available to you. It doesn’t matter if you haven’t found a property just yet, we can provide you with some facts and figures that will help you select the property within your price range. As we do not charge broker or advice fees this information won’t cost you anything apart from 30 minutes of your time. 

In the meantime we’ve outlined below some background information on mortgages for first time buyers that we hope you’ll find useful. 

How much can you borrow? 

The amount that a lender will lend to you, very much depends on your individual circumstances and different lenders’ affordability criteria. Lenders look at what you can afford, based on the number of people applying for the mortgage and assessing affordability, by taking into consideration your income and outgoings and any other liabilities that you may have. Some lenders offer very good deals for first time buyers, so it is always worth asking us to research the market on your behalf. To help your adviser have a recent payslip and bank statement available so that you can be given a more accurate figure for your new mortgage. 

What other costs do you need to be aware of? 

It is also worth remembering the additional costs, on top of your deposit and mortgage that you will be expected to pay. 

For example, you will have to pay stamp duty for the property which you are purchasing. The amount of stamp duty varies depending on the price of the property and whether you are buying in Wales or England. 

Plus you will have to pay for the survey and the valuation of the property, and solicitor’s fees. 

You may also have fees to pay to the lender for your mortgage. These could be an arrangement fee and/or booking fee. 

Are there schemes to help First time buyers? 

HTB equity loan 

With a Help to Buy: Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. 

You won’t be charged loan fees on the 20% loan for the first five years of owning your home. 

Help to buy ISA 

The Help to Buy: ISA is available from a range of banks and building societies. 

The accounts are available to each first time buyer, not each household. This means that if you are planning to buy with your partner, for example, you could receive a government bonus of up to £6,000 towards your first home. 

Save up to £200 a month into your Help to Buy: ISA. To kickstart your account, in your first month, you can deposit a lump sum of up to £1,200. 

The minimum government bonus is £400, meaning that you need to have saved at least £1,600 into your Help to Buy: ISA before you can claim your bonus. The maximum government bonus you can receive is £3,000 – to receive that, you need to have saved £12,000. 

When you are close to buying your first home, you will need to instruct your solicitor or conveyancer to apply for your government bonus. Once they receive the government bonus, it will be added to the money you are putting towards your first home. The bonus must be included with the funds consolidated at the completion of the property transaction. The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitor’s, estate agent’s fees or any other indirect costs associated with buying a home. 

For more free advice contact Martin Newell at Blestium Financial Services. We have offices in Monmouth and are happy to do appointments at your home or workplace in the evening or weekends.