Are you a first-time buyer? We all know that getting onto the property ladder is a very big challenge and can be quite daunting as well. There is a lot of conflicting advice out there. Letting our advisors assist you through the whole process from initial contact to, finding out how much you can borrow, getting a breakdown of the costs involved and obtaining an agreement in principle, making you a qualified purchaser and a desirable buyer for many estate agents.
Help to buy schemes can help you to buy newly built homes. Provided that buyers can put down a deposit of 5%, the government will then lend up to 20% of the purchase price of the property. This means that the buyer only needs to get a mortgage for the remaining 75%. Then the mortgage guarantee scheme can be used to buy either a new build or a pre-owned property. In this scheme, lenders essentially insure a part of the mortgage with the government. This means that they are guaranteed to get that part of their money back even if the borrower becomes unable to make repayments.
With the mortgage, you should try and put down as big of a deposit as possible and the reason for this is because not only will it reduce the amount of money you will have to borrow which will reduce the monthly repayments but it will also make the lender less exposed to changes. Your family can also help you get onto the property ladder. Older people who have had more time to accumulate personal wealth may well be willing to act as mortgage guarantors for younger people that they trust. This can be helpful for people who might struggle to meet affordability criteria as applied objectively by lenders.
We can also give you advice for a buy to let mortgage where our team will source from a suite of lenders and compare products to ensure you have the best mortgage that suits your individual circumstances. We understand investors need to maximise income and ensure the right product to help you grow your investment portfolio. Our advisors will understand your needs whether you are looking for that 1-time investment, or to build a portfolio of properties. A lot of people left the market in 2008 and a few did end up limping on, realising that being a landlord is often quite demanding. There is still a place for serious investors out there who can work ad think strategically to build up a business. For a buy to let mortgage you cannot use a conventional mortgage or insurance to buy a buy to let property.
A mortgage for rental property will typically have much higher rates than a residential mortgage. This shows that banks are interested in lending to people who can put down a higher percentage of the value of the property themselves. One aspect of the but to let mortgage that makes life slightly easier for the purchaser is the fact that they are often interested only. This means that each monthly repayment covers just the interest payment and not the loan capital, at the end of the agreement the capital can be repaid by selling the property and the seller can retain any profits.
If you are interested in more detailed advice from us and tailored to your circumstances please make sure you get in contact with us to find out more.
While having an offer on a house accepted may be a cause for celebration, it is actually a fairly early point in the procedure for buying a property. Here is a summary of the steps [...]