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 FIRST TIME BUYERS MORTGAGE IN YORK

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First Time Buyer Mortgages | Independent Mortgage Advice York

Buying your first home should be an exciting prospect for anyone but all too often the process can seem far more daunting than it should, which is why getting independent advice should always be considered. We take the time to explain the options available to you and work hard to find the best mortgage deal for your circumstances from the whole market, meaning you have one less thing to worry about.
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How do mortgages work?

  • A mortgage is a loan that is provided by a bank or building society to enable you to purchase a property
  • The loan is secured against the property you are buying and can be repaid over a term of between 5 and 40 years
  • As the mortgage is secured against your property, if you are unable to keep up with the repayments, the bank can repossess
  • In order to secure a mortgage you must be able to show the lender that you can afford the repayments as well as being able to provide a deposit of at least 5% of the purchase price


How much interest will I be charged?

  • When you take out a mortgage an initial interest rate is agreed for a set period – usually between 2 – 5 years
  • In order to help with budgeting, the initial interest rate can be fixed meaning that you know exactly what you will be paying for an agreed length of time
  • Once the initial interest rate expires, you will be transferred onto the lenders SVR (standard variable rate), which is the default interest rate they charge
  • Generally speaking, the SVR will be higher than other rates available with your lender so you would often look to either switch onto a new deal with them, or secure a new deal with another lender if there are better deals elsewhere




Will I own the property once the mortgage ends?

  • Most mortgages are set up on a Capital and Interest basis meaning that each monthly payment consists repays part back part of the money you have borrowed plus some of the interest you are being charged
  • If you keep up with the repayments throughout the mortgage term, you will own the property outright at the end
  • Alternatively, some mortgages are set up on an Interest only basis with the mortgage balance being repaid in full at the end of the term


*Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.


Frequently Asked Questions About First Time Buyer Mortgages


How much deposit do I need? | First Time Buyer Advice in York

The minimum is 5% as there are now lenders who will lend 95% of the purchase price. It’s also 5% if you buy a new build property with Help to Buy.

However a larger deposit means less risk to the lenders, who may lend at lower rates with a higher deposit. 


Can I use a gifted deposit? | First Time Buyer Advice in York

Yes, usually the gift will come from close family members and it’s a great way of increasing a deposit which may then allow a buyer to buy a more expensive property and/or benefit from a better mortgage deal.


Why use a mortgage broker York?

An adviser will provide information and support from starting to look for a property to completing the purchase. The adviser will schedule appointments at a time convenient to the client. The advisor liaises with the different parties involved with the property purchase and provides guidance on all the paperwork required. The advisor will see the application process through from start to completion. 


When should I speak to Mortgage Advisor York? 

Ideally the best time to do this is just as you are starting to think about buying. The adviser will discuss maximum borrowing capacity and indicative repayments. Putting buyers in a position where they can look in confidence at properties on the market.

Other Frequently Asked Questions About First Buyer Mortgages

  • What is shared ownership mortgage York?

    The buyer buys a certain percentage share of the property with the remainder owned usually by a Housing Association. Rent will be paid on the part of the property not owned by the borrower. Every scheme is different though so it’s worth discussing this with an adviser before deciding to proceed.

  • How does Help to Buy work?

    Available only on new build properties. The scheme allows people to buy a property with a minimum 5% deposit. Help to Buy will then buy a stake in the property of up to 20%. The remaining borrowing of 75% is financed by standard mortgage. The Help to Buy scheme is interest free for the first 5 years. If a property is bought at £200,000 with a 20% help to buy stake (£40,000) and the value of the property rises to £220,000, the cost of buying out the Help to Buy stake would increase to £44,000 (20% of £220,000).  

  • What is a decision in principle?

    It’s an indication from a lender that they will be prepared to lend in your circumstances. It involves a credit search, information regarding income and any credit commitments. 

  • What do lenders want to see for a mortgage application?

    a) Clean credit history with no missed payments, defaults, county court judgements etc. However there are some lenders who will lend with a less than perfect credit history but it will usually cost more.  

    b) Proof of income to ensure that the mortgage plus any commitments are affordable. 

    c) A valuation to know what the property is worth and what sort of condition it’s in. 

    d) All mortgage applications are subject to full underwriting by the lender. 


  • When should I get a decision in principle?

    Ideally at the time you are looking to make an offer. It confirms to the estate agent that you are a serious buyer ready to proceed with a purchase. If an offer has been made, the estate agent will usually want to see a decision in principle before confirming your offer has been accepted.

  • What other costs are involved?

    Solicitors fees (they will give a quote before you proceed) and depending upon the property being bought, an upgraded survey. Valuation fees, and product fees associated with the mortgage, and a broker fee. 

  • Which Solicitor should I use York?

    Ask friends and family if they have recently used a Solicitor and if the service was good, that’s a good recommendation. Alternatively there is a lot of information online with reviews etc of Solicitors but a recommendation is usually the best option. 

  • What documents do I need to provide to a mortgage broker York?

    Usually it’s 3 months bank statements, 3 months payslips and proof of identity. For self employed applicants proof of income for the past 2 or 3 years .If additional information is needed, it will be requested by the adviser.