First Time Buyers

Getting a mortgage has become more difficult for first-time buyers in recent years, thanks to rising house prices. Even now, with residential property values set to stabilise or even fall in some areas, first-time buyers are instead faced with more difficulties when trying to secure a mortgage.

Perhaps you haven't managed to save a decent deposit yet, or maybe you're worried you might not be able to afford a mortgage on your income alone. Even if this is the case, there are options open to you. Call us now to find out how we can help you find that perfect mortgage.

There are thousands of mortgage deals on offer in the UK, so it is vital that you do not simply go for the first mortgage you are offered

How much can I afford?

Whether you seek independent mortgage advice or not, as a rule of thumb, if you are applying for a mortgage you can borrow based on the following criteria:

On your own (single applicant)

It varies depending on your circumstances - but typically ranges from 3.5x your annual income up to 5x your annual income.

With someone else (joint applicant)

You could borrow around three times the first applicant's income, or two and a half times your joint income.

Getting a mortgage

Many first-time buyers invest far more time in finding the right house than in finding the right mortgage. To be fair, house-hunting is quite a bit more interesting than mortgage-hunting, but the two are equally important. After all, you will be living with both of them for many years to come.

The key is to research until you can research no longer, and then research some more. Consider carefully how much you can realistically afford to borrow. Most lenders will offer you up to three times your salary – some will lend more, but often at a higher rate.

It's worth first-time buyers noting that at the time of writing (August 2008), 100% mortgages are virtually a thing of the past. You might be lucky if you have an impeccable credit history and you do some hunting around, but don't count on it. Besides, starting off with no equity in your home leaves you in a very vulnerable financial position, so you're better off taking the time to save for a deposit if you can. It may take patience and effort, but in the long run it will put you in a far more secure position.

To find out more about all the options available to the first time buyer, give us a call or use the call back form to the left of this column.

There will be a fee for mortgage advice. The amount will depend on your circumstances. Our typical fee is £325.