First Time Buyers
We understand for First Time Buyers, mortgages can seem like a foreign language that can be difficult to understand!
There are so many lenders, products, interest rates and moving parts to the whole process. Our First Time Buyers guide helps you to break this down so you can feel confident in how you can move forward into your first home. We’re here to help first-time buyers in Warrington and the surrounding areas with all the support and advice they need to secure their first home.
Your first time buyer knowledge hub
The true cost of buying your first home
Buying your home – straight outta lockdown
Mortgage advice for self-employed
How long are mortgage terms?
What paperwork do I need?
Can first-time buyers buy to let?
Can I get a mortgage with bad credit?
Took the hard work and headaches away
Thank you to Sam and the team for guiding us through the purchase of our first home during a pandemic. We didn’t know where to start with it all but Warrington Mortgage Centre took the hard work and headaches away and made it so much easier. Would 10000000% recommend to anybody. They’ve really looked after us! Thank you.Matt & Emma
Professionalism shown from start to finish
I can’t recommend Warrington Mortgage Centre enough. Sam helped us with the purchase of our very first home, he was incredibly knowledgeable and worked round the clock to ensure we felt comfortable and confident in our purchase and all the details involved. There’s a real sense of care about WMC, I think you can tell it’s a family run business at no expense to the level of professionalism shown from start to finish. Thankyou to you all for making the purchase of our first home such a joy!Sam & Kate
How do I get a First Time Mortgage?
We’ll find the mortgage – Made for You!
Simply give us a call or book your appointment on our website. Tell us how we can help you, and we will set you up with your own Mortgage Hero (that’s what people call us!)
Your local mortgage advisors
We’ll be there, holding your hand throughout the process. We’ll make sure that we take care of all your paperwork, and make sure you’re kept up to date with your chosen lender, surveyor & solicitor.
Stress-free mortgage advice
Before you know it, our entire team and your dedicated mortgage advisor will have found the perfect solution and we’ll be calling to say congratulations.
Ready to get going? Request a Call Back
How long does mortgages last for?
A typical mortgage term is usually around 25 years, however, lenders can offer you a mortgage much longer than this depending on your age and personal circumstances.
Good to know!
If you choose a longer the mortgage term, the lower your monthly repayment will be, as it will take longer to pay off, however, you’ll end up paying more interest to the lender over a longer period of time.
If you choose a shorter the mortgage term, the higher the monthly repayments will be, but you ill clear your mortgage quicker and pay less interest to the lender.
When choosing how long you want your mortgage to be, think carefully of you monthly budget, because you’ll be committed to pay this, every single month!
Can I get a mortgage?
This depends on your personal circumstances.
You’ll need to demonstrate to lenders that you’ll be able to afford the monthly payments, and they’ll also want to see how you’ve managed debts in the past. To do this, they’ll get a copy of your credit report, so it’s worth requesting a copy yourself before applying so you can see how good your score is. We can help you understand what the lenders looking for and help you with ways to improve it to!
What documents do I need for my mortgage application?
Lenders will want to verify the data used on your application before they can issue you a binding mortgage offer, so to make sure the home buying process is as stress-free as possible, it makes sense to get everything you need to hand prior to applying for the mortgage
Your lender may want to see any or all of:
- Your last three months’ bank statements
- Your last three month’s payslips
- Proof of bonuses/commission
- Your latest P60 tax form, showing income and tax paid
- Your last three years’ accounts or tax returns (if self-employed)
- Proof of deposit (e.g. latest 3 months’ savings account statements)
- ID documents (usually a passport or driving licence)
- Proof of address (e.g. utility bills or credit card bills)
- A gift letter; If you’re receiving help with your deposit, the lender will need a letter from the person providing the gift explaining that they won’t part own the home and that it’s not a loan.
What is stamp duty?
Tax is payable when you purchase a property above a certain value. The amounts can be quite significant and you will have to factor this into your budget when considering how much deposit you need to buy a house.
The actual name of the tax and the rates applied depend on where you are buying in the UK, whether you are a first time buyer, and if not how many properties you currently own.
In England and Northern Ireland it’s called Stamp Duty Land Tax and is payable for purchases above £125,000, though currently first time buyers are exempt for properties up to £300,000
From 1st April 2018 Wales gained control of her own rates, called the Land Transaction Tax, which applies to properties over £180,000
In Scotland the Land & Buildings Transaction Tax applies to properties over £145,000, or £175,000 for first time buyers from the 30th June 2018
In England, Wales and NI a 3% surcharge is imposed for additional properties such as second homes or buy-to-let. In Scotland the surcharge is 4%.
What is freehold?
The freeholder of a property, owns the property, and the land that the house is situated on……
If you buy a freehold, you’re responsible for maintaining your property and land, so you may need to budget in these costs.
By owning the house as freehold, you won’t need to worry about paying ground rent, the lease running out, our, having to deal with the freeholder (landlord)
What is leasehold?
With a leasehold, you own the property (subject to the terms of the leasehold) for the length of your lease agreement with the freeholder.
When the lease ends, ownership returns to the freeholder, unless you can extend the lease.
Most flats and maisonettes are owned leasehold, so while you own your property in the building, you have no stake in the building it is in.
Some houses are sold as leaseholds. If this is the case, you own the property, but not the land it sits on.
This means you won’t be responsible for maintaining and running the building.
The landlord will do this or appoint a managing agent to do so for them.
However, the leaseholders share the costs of this by paying a service charge, or ground rent, to the landlord.
You might also be asked to pay into a sinking fund, to help cover any unexpected maintenance work needed in the future.