The credit crunch has led to many shifts in the mortgage market, but perhaps one of most upsetting for many is the loss of the traditional ‘First Time Buyer’ mortgage.
As it stands currently, the best mortgage deals available come in at 90%, meaning you require 10% of the purchase price of the property to enable a purchase.
Currently, many of these 90% deals sit in the UK whole of market arena, and are not available on the Scottish High Street, so it is essential you contact an Independent Mortgage Adviser who has access to such deals, and who can provide you qualified independent advice in the task of buying your first home.
The Mortgage Specialists ‘ First Time Buyer’ guide
1.Work out how much you can afford
Calculate your monthly household income, then calculate your household outgoings to give you an idea of what is an affordable amount to allow for your mortgage payment
2. Work out how much you can put down as a deposit
- You will usually need at least 10% to 15% of the value of the place you want to buy
- The higher your deposit, the less borrowed and the less interest you’ll pay
3. Find out how much you can borrow
This will vary from lender to lender. Some will offer you 3 x income, some will offer up to 5x income. You can use our mortgage calculator to determine what this may be, or contact us for mortgage advice.
Other costs to consider:
- Solicitor’s fees – always enquire with a range of solicitors to get an idea of costs
- Arrangement fees for your mortgage – can usually be added with most lenders
- Valuation/survey – The Home Report from the sellers usually takes care of this cost in Scotland
- Stamp duty – if your property costs under £250,000, and you complete the purchase between 25 March 2010 and 25 March 2012 and match the Government’s definition of a first time buyer you will not have to pay any stamp duty. Over this a 3% ‘Stamp Duty’ tax will apply.
- Buildings and contents insurance – usually around £20 -35 per month dependant on cover required and the property in question
- Protecting you and your home – Personal Protection for you and your family is essential to avoid you losing your home in the event of illness, injury or unemployment.
