First Time Buyer Mortgages Gravesend & Kent
Thameside Mortgages assist with first time buyer mortgages in Gravesend, Kent, and the surrounding areas.
Buying a property for the first time can certainly appear to be a daunting experience – it is not as simple as finding the cheapest mortgage rate on offer and applying for it. Mortgage Regulation has brought in strict guidelines regarding affordability and all lenders have different ways of assessing a client.
We promise to take the time in guiding you from the very start of the journey, right through to the point you receive the keys to your first home, and beyond.
What Are The Steps Involved?
We usually arrange a chat with you over the phone initially and help you understand the amounts you can borrow, costs of buying a property and the likely monthly payments. We will summarise our entire conversation to you by email and explain the next steps in terms of helping you obtain a mortgage.
Once we have all the necessary information, we can obtain an AIP (Agreement in Principle) which you can use to show estate agents, evidencing your ability to obtain a mortgage. We are more than happy for you to provide our contact details to the agent, should they need your offer to be ‘financially qualified’.
Once you have an offer we will help secure the right mortgage deal based on your needs and requirements and liaise with the estate agent, mortgage lender, solicitor, surveyor and all associated parties to ensure that the mortgage offer is issued as quickly as possible. We will also help you with all the legal forms that need to be completed and guide you right through to getting the keys to your first home.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it. If you need help with first time buyer mortgages in Gravesend, Kent, or Bedfordshire, get in touch today.
First-Time-Buyer Mortgages – FAQs
Who qualifies as a first-time buyer?
Some mortgage lenders may consider someone a first-time buyer (FTB) if one of the purchasers has not held a mortgage in the last 3 years. However, HMRC states a first-time buyer is someone who has never owned a property before (anywhere in the world). When it comes to stamp duty relief, you must meet the HMRC definition of a first-time buyer to qualify. If two people are purchasing together, both applicants would need to be first-time buyers to qualify for any stamp duty relief.
How do first-time buyer mortgages work?
A first-time buyer mortgage application is generally treated the same as other mortgage applications. However, with regards to affordability, some lenders may offer enhanced income multiples for a first-time buyer of up to 5.5x income subject to your individual circumstances. You’ll want to obtain a copy of your credit report, payslips, and/or tax returns and establish a) how much you can borrow, b) how much you can purchase for and c) what the likely monthly payments will be.
How much deposit do I need as a first-time buyer?
You need at least a 5% deposit to put towards the purchase of the property (95% mortgage). The bigger your deposit, the lower the risk is to the mortgage lender, so the lower your rate could be. Costs in connection with purchasing a property are usually treated separately and cannot be added to the mortgage without affecting the overall borrowing. Therefore, we generally advise you have extra funds set aside to cover the costs of moving, such as mortgage lender fees, survey fees, and legal fees.
When should I apply for a mortgage as a first-time buyer?
Before you start viewing properties, you should understand how much you can afford to borrow, what deposit/fees your need to save, how much you can purchase for, and what your monthly repayments are likely to be. You should obtain a copy of your credit report and we’d recommend speaking with a mortgage broker/adviser who can guide you through the entire process.
You should obtain an Agreement in Principle (also known as an AIP or DIP) as estate agents will want to see you have the finances organised to purchase the property they are selling. A decent mortgage broker would be happy to liaise with the estate agent to confirm your financial position and strengthen your offer.
What's the mortgage application process?
The first step is to understand how much you can realistically borrow and obtain an Agreement in Principle (AIP). This is the first foot in the door when it comes to making a mortgage offer. Once your offer has been accepted on a property, you’ll be able to work through the thousands of mortgage products available, with a view of submitting a formal mortgage application to the mortgage lender.
At this point, you will need to evidence of everything to the mortgage lender, such as payslips, bank statements, proof of ID/Address, and proof of the deposit. The lender will also instruct a survey on the property to ensure the property is worth how much you’ve agreed to pay for it and to ensure the property meets its definition of ‘suitable security. Once the lender has confirmed they are happy with all proofs we have provided to them and the survey has been marked as ‘acceptable’ a formal mortgage offer will be issued, which is the formal commitment from the lender to lend you the money. These are typically valid for 6 months, allowing time for the legal process to be completed.
How much stamp duty will I have to pay?
In England and Northern Ireland, first-time buyers do not pay Stamp Duty Land Tax (SDLT) on the first £425,000 of the purchase price. £625,000, first-time buyers pay 5% of the difference between £425,001 and the actual purchase price (up to £625,000).
If the purchase price is greater than £625,000, the normal stamp duty rates apply. However, the government confirmed in its Autumn 2022 statement that the stamp duty cut will end on 31st March 2025.
Why not look at our calculator to find out how much you’d pay?
How can I find the right deal for me?
With more than 90 lenders and thousands of mortgage products to choose from, it can be incredibly difficult to know which product is right for you.
A good mortgage broker will take the time to educate you in understanding the different types of mortgages available and will ensure the right mortgage is chosen, not just the one that appears to be the lowest on the face of it.
Lending criteria, affordability rules, and arrangement fees all vary from lender to lender and the right mortgage broker will guide you through the options to help you choose the product that is right for you.
How do I prove I am a first-time buyer?
When you purchase a property, HRMC automatically assumes you are NOT A first-time buyer, so your solicitor or conveyancer will have to complete a First-Time Buyer declaration.
While we don’t know of any database that contains a list of people that have owned property, HMRC has access to Land Registry Records, Stamp Duty Land Tax (SDLT) Records, your credit report, and bank account information. It’s reasonable to believe if HMRC raised an investigation, they wouldn’t need to dig that deep to establish if you’d previously owned a property.