First Time Buyers
Choosing your first mortgage can be daunting so many borrowers choose to get help from a professional mortgage adviser.
Brunel Independent Mortgage advisers have been helping first time buyers since 1981
We offer a lot more than advice. We help you through the whole mortgage process from application to the day you get the keys to your new home.
At Brunel Mortgages we will ensure:
- We will find you the best deal available.
- We will make the process easy to understand.
- We will keep you updated throughout the process.
- We will always be here to answer questions.
At Brunel Independent Mortgages we are not restricted to just one lender and are able to advise on a comprehensive range of mortgages.
What’s more, we have access to exclusive deals that are not available on the high street.
What is a mortgage?
A Mortgage is a loan which is intended to help you buy a property. When you take out any loan, the lender charges interest in addition to a monthly capital payment. The same is true of a mortgage.
Basic conditions
We can match your circumstances to the right lender for you.
Here are some of the factors lenders take into account when making their decision.
Affordability
A mortgage lender calculates what is affordable using their own criteria. This will often include the average cost of living figures as well as personal income and expenditure.
A lender may be willing to lend you more than your planned budget but it is important to limit your borrowing so it doesn’t exceed your budget.
A lender may lend less than you can afford. This maybe as a result of prudent experience or because the lender doesn’t accept the source of your income. We can discuss this with you and consider lenders that will accept different types of income.
What happens when you apply for a mortgage?
Prior to making a full application, we will apply for a decision in principle with the chosen lender. This will demonstrate to an estate agent that you are in a position to buy.
The decision in principle process will assess your income against your expenditure. There will also be a credit search.
Deposit
Saving as much as you can for your deposit is important if you are a first time buyer, as it gives you access to better deals and more choice.
The bigger the deposit, the cheaper your mortgage payment. So, it pays to save.
Many lenders offer attractive rates aimed at first time buyers.
There are also mortgages that allow you to buy a property with the help of your family.
Valuation and Survey
A lender will carry out their own mortgage valuation to assess both the value and suitability of the property against their lending criteria.
A survey gives you essential information that could mean you may decide not to proceed with the purchase or gives you grounds to renegotiate the price.
We can advise you on the different types of survey available.
How long does it take?
Most lenders would expect to issue a mortgage offer within four weeks from the receipt of an application.
If an application is made correctly and all the necessary documents required are submitted at the start, it will help speed up the process.
We know which documents a specific lender needs and will also be able to pre-empt any questions they might have when assessing the application. This is particularly relevant to applicants who have bonuses, overtime, commission or they are self-employed.
There are several government schemes available for first time buyers. We can advise you on the current available schemes.
These include:
- Shared Ownership
- First Homes
- Rent to Buy
- Right to Buy
Shared Ownership
Shared Ownership is a fantastic opportunity if you’re unable to purchase a home on the open market. It allows you to buy a share in a property on a part buy/part rent basis and pay a subsidised rent on the part that you don’t own.
You can buy a share between 25-75% of the property value depending on how much you can afford. The bigger the share you buy, the less rent you have to pay. This can also be helpful if you have a smaller deposit.
Eligibility
Shared Ownership is available to those who cannot afford to buy a suitable home on the open market.
Contact us for full details of the scheme and the process.
We know which lenders are currently providing the best deals and will help ensure that your monthly outgoings are affordable.
Staircasing
Over time, you can purchase more of your property. This is called ‘staircasing’. This can be done at any time after the initial purchase and it will reduce the amount of rent you pay.
In most cases, you will be able to staircase up to 100% and own your home outright.
First Homes
First Homes is a scheme that will provide discounted homes to first-time buyers in England who otherwise wouldn’t be able to afford one. More specifically, under this scheme, first-time buyers will be able to purchase a new-build home in their community at a discount of 30% on the market price.
First Home Scheme properties first became available in 2021 and they are expanding throughout England.
Eligibility
These properties must be purchased by first-time buyers. If buying as a couple, neither partner can have previously owned a home. Otherwise, the properties are bought and sold in the normal way.
You’ll also need to buy within your local area, with the intention of living in the property.
Although the scheme will be open to everyone, certain professions will be given priority. These include serving members and veterans of the armed forces, and key workers including nurses, police officers, fire fighters and teachers.
Rent to Buy
Rent to Buy recognises that some people who currently rent want to buy a home and can afford it. But because they are paying rent every month they find it hard to save for a deposit.
Rent to Buy allows buyers to rent a property for up to five years at a discounted rent. At the end of the rental period, you can then buy the property or a share of it.
The idea is that the money you have saved in rent over the renting period can be put towards a deposit to then buy the property.
Eligibility
It’s important to bear in mind that Rent to Buy schemes aren’t really aimed at those who can’t afford to buy a property. They are aimed at those who can afford to buy, but can’t get the deposit together because they are renting. If you can’t afford the mortgage once you buy the property Rent to Buy isn’t for you.
Right to Buy
Right to Buy allows most tenants to buy their social housing home at a discount.
Houses
You get an initial 35% discount if you’ve been a social housing tenant for between 3 and 5 years.
After 5 years, the discount goes up 1% for every extra year of the tenancy, up to a maximum of 70%. Limits apply regionally.
Flats
You get an initial 50% discount if you’ve been a social housing tenant for between 3 and 5 years.
After 5 years, the discount goes up 2% for every extra year of the tenancy, up to a maximum of 70%. Limits apply regionally.
Eligibility
You can apply to buy your council home if:
- It’s your only or main home
- It’s self-contained
- You’re a named tenant
- You’ve had a social housing landlord (for example, a council, housing association or NHS trust) for 3 years – it does not have to be 3 years in a row.