First Time Buyer Mortgage

You’ve scrimped and saved and finally you’re ready to buy your first home but where do you even begin?

At Affinity, we can remember how it feels to be a first time buyer so we also know how much it helps to have someone who can take you through the process step-by-step.

Sometimes securing a mortgage and becoming a first-time buyer can feel overwhelming with lots of new words and terms to get to grips with. Before you even pick up the phone to your local estate agent, there are some ‘I’s to dot and ‘T’s to cross first. 

Getting on the housing ladder is a momentous milestone so it’s important to have the right guide to take you through the process to make sure you understand each step on the journey. Read on to have your questions answered or get in touch with one of the team [contact details].

Secure a mortgage, find your dream home 

If you’re sick of paying rent or living in the spare room, now’s the time to take a serious look at whether you’re ready to own your own home but if you’ve ever walked past an estate agent’s window, you’ll know houses aren’t cheap. 

There aren’t many people who can buy a house outright, which is where a mortgage comes in.

You can deep dive into what a mortgage is and the types available but essentially a mortgage is a large loan that helps you to buy a house. You pay this loan back plus interest over a long period of time. 

A first time buyer needs to be aware of the following stages before picking up those keys:

1. Agreement in principle, 
2. House hunting,
3. Offer,
4. Offer accepted,
5. Formal mortgage offer,
6. Conveyancing,
7. Survey,
8. Exchange,
9. Complete – home sweet home!

Getting from the beginning to the end of this process can take weeks or much, much longer! It all depends on yours and the vendor’s (seller’s) circumstances.

How much can I borrow?

The big question! 

We recognise that this is one of the first things people want to know when they come to us.

Different providers follow different criteria, and those criteria are often changing, which makes it a tough question to answer. 

That’s why it’s a good idea to contact an experienced and responsible broker like Affinity as soon as possible to scan the current market and identify an affordable mortgage that’s best for you. 

We have access to products you won’t find through High Street lenders, as well as exclusive deals.

As a rule of thumb, things like the amount of deposit (an upfront lump sum you pay towards a house purchase) you have, your credit rating and your financial circumstances will affect what mortgages are available to you. 

Check out our mortgage calculator to find out how much you could borrow.

Agreement in principle

An agreement in principle is like a golden ticket to house-hunting, it tells agents and sellers that you’re good for it so they’re much more likely to take you seriously. 

Being a first-time buyer shouldn’t have an adverse effect on the amount of mortgage available to you.

Although it’s not compulsory, an agreement in principle means you have a crystal clear understanding of what you can or cannot afford so you don’t run the risk of falling in love with a property only to find you can’t afford it.

An agreement in principle can sometimes be called a ‘decision in principle’ or a ‘mortgage in principle’. While an agreement in principle is not legally binding they usually last for up to 90 days, which gives you time to find a property before the agreement expires, you convert it to a formal offer or secure a different agreement in principle.

Affinity can help you find the right agreement in principle and eventual formal mortgage offer so before you start your search, start with us.

Top tips

We’re here to help you through the process of becoming a first time buyer but there are a few steps you can take that will help smooth the way or improve your chances of getting the best deal possible.

Paperwork – Make sure you can assemble all of the necessary personal and financial paperwork you might need when applying for an agreement in principle or your first time buyer mortgage. This includes:

• A form of ID
• Past three to six months of bank statements
• P60
• Utility bills
• Proof of benefits (if you receive them)

If you’re self-employed you’ll need some other paperwork but we’ll tell you everything that’s required.

Everything on your paperwork must be accurate or an offer could be withdrawn or credit checks have to be re-done. But don’t worry we’re your second pair of eyes. We’ll fill out all the forms without making any of those easy-to-make mistakes that can cause delays or even cause a first time buyer mortgage application to be rejected.

Affordability – Have a long hard look at your incomings and outgoings to calculate what you can save each month towards mortgage repayments. 

Also, look at the deposit you’ve been able to save. For a first time mortgage, you’ll normally need to have at least 5% of the full property value saved as a deposit but between 10% and 20% is usually better.

You might need to spend a bit more time saving to boost your deposit. There are various schemes available to buyers that can assist with building your deposit and there are government contributions available. We can talk you through the options.

There’s a first time for everything, and if you are a first time buyer, you can’t be expected to know it all. One thing you can be assured of though, is that Affinity is here to help. Let us take you through the process step by step, and if you’d like some extra help, we can offer that too…oh and by the way, all of our support and advice is free.

Credit score – the better your credit score the more favourable the mortgage terms but don’t worry if your rating isn’t peachy, there are still options and mortgages available if you have bad credit [link to bad credit mortgage page].

Make sure you’re aware of your credit score and take steps to improve it where you can.

Some simples ways to boost your credit score for mortgage purposes include:

• Being on the electoral register at your current address
• Make sure the right address is the same across all your accounts
• If you have any credit cards, make sure you’re not maxed out on your credit limit
• Keep up to date with credit payments and bills

There are also some useful tools available to help you keep track of your rating or access credit builder credit cards that can help you improve your credit score if it’s low due to lack of credit.

Get the right guide

Buying your first home is life changing so it is not only important that you find the right mortgage for you but also that you keep up repayments otherwise your home could be at risk of repossession.

When you get in touch with Affinity, you’ll be looked after by a real-life person, not a computer algorithm, who will use their knowledge and experience to guide you through becoming a first time buyer and get you the best deal they possibly can.

If you’re ready to take your first step on the ladder, get in touch.