First Time Buyers - Your guide to getting on the ladder

Buying your first home is an exciting – but a daunting task. This simple guide aims to cover the principle steps encountered in buying your first home.

1. Set your budget

Before you start searching for the perfect property, it’s important you know what size mortgage you can afford. Use the mortgage calculator to see how much you may be able to borrow. How much a mortgage provider will lend you will depend on your individual circumstances, the type of property you are buying and the mortgage providers lending criteria.

spacer

Try our loan calculator to see how much a mortgage might cost, or check to see how much you can afford to borrow for a new car, in four easy steps.

This applies to repayment mortgages.

Mortgage Calculator

Total

Monthly cost

Term

years

Interest

% APR

Step 1 - Put the amount you want to borrow in the total box, or the amount you can afford to pay each month in the monthly cost box.

Step 2 - Put the term of the loan in the term box.

Step 3 - Put the interest rate (APR) in the interest box.

Step 4 - Press Calculate Now.

 

spacer

This information does not contain all the detail you would need to choose a mortgage. Make sure you read your individual Key Facts Illustration plus (KFI+) or the new European Standardised Information Sheet (ESIS) before you make a decision.

A KFI Plus of ESIS gives you tailored information, based on a particular mortgage and the level of lending you require, which is important to help you make your decision. This includes associated rates and fees, the overall cost of the mortgage and your monthly payments.

Please note this does not constitute mortgage advice and the figures shown are purely a guide. The actual rate available will depend upon your circumstances. Please ask for a kfi plus/esis.

spacer

2. Check out your mortgage options

There are a number of mortgage and repayment options available for first time buyers. Contact us for a free initial mortgage consultation so we can explain your options. We will be able to estimate the amount that you may be able to borrow and can provide you with a Mortgage Certificate showing your suitability as a borrower. This is useful when dealing with estate agents and sellers because it shows you are a serious purchaser.

3. Make an offer

You have found the property that is right for you, and it’s in your price range, you then make an offer to purchase. This is normally made to the vendor or to the estate agent acting on the vendors behalf.

4. Your offer is accepted

If your offer has been accepted, the property you want to buy is said to be 'sold subject to contract'. At this stage the agreement is not legally binding.

5. Appoint a solicitor or licensed conveyancer

When choosing a licensed conveyancer or legal advisor make sure you get a full breakdown of costs, so you can see what they will charge you. We have links with trusted conveyancers who you can use for this purpose.

6. Apply for a mortgage

We will use our specialised individual mortgage programme to find you the most suitable mortgage product available. We will then apply for the mortgage on your behalf.

7. Obtain a property survey and valuation

Your mortgage lender will require a standard Valuation for Mortgage Purposes to be carried out by a surveyor of their choice. You may want to have a more detailed Home Buyer survey or a full structural survey carried out for your own peace of mind – especially if the property is old or needs some work. You may use the surveyor of the mortgage lender to carry out this further work (at an extra cost) or you may appoint your own surveyor.

8. Exchange contracts

When your solicitor or licensed conveyancer has completed all the necessary checks, you'll be asked to sign a contract legally committing you to the purchase.

At this stage you'll also pay a deposit and agree a completion date. The deposit is usually a minimum of 5% of your property's purchase price. On average, you will have between two and four weeks before you can move in, so this is a good time to tell friends and colleagues, arrange insurance, contact the local authority, and make arrangements with utility companies.

9. Sort out your mortgage protection and insurance

To exchange contracts, you will need buildings insurance in place. We can arrange this for you. In addition we can provide mortgage protection, family protection and contents insurance and as Independent Financial Advisers we can find you the best deals available.

10. Drawing down the mortgage

Your solicitor or licensed conveyancer will obtain the mortgage fund from the mortgage lender ready to pay the seller.

At this point you will be required to pay your solicitor or licensed conveyancer for their work and for extra expenses. like Stamp Duty and the Land Registry Fee. Your legal advisor will tell you how much these costs will be.

11. Completion

Congratulations, it’s the day you move into your new home. Your solicitor or licensed conveyancer will complete the purchase, then you can collect the keys and move in.

You can visit our sister company website to obtain some information regarding the tax situation.

spacer
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Please note that this guide is for those buying a home in England, Wales or Northern Ireland.
Different rules apply for those buying in Scotland.
The Financial Conduct Authority does not regulate Conveyancing / Legal Services.

Kate Beale

For more information on first time buyers contact Kate Beale on:

Tel: 01206 871120
Email: kate@bgafs.co.uk

We will use your name, email address and contact number ('personal information') to contact you about the services you have requested or respond to an enquiry you have submitted, which will require us to share your personal information with our advisers. For further information on how your information is used, including disclosure to third parties, how we maintain security of your information and your rights in relation to the information we hold about you, please see our Privacy Policy or contact info@bgafs.co.uk or 01206 871120 to obtain a copy.

Our Current Campaign

Are you paying too much for protection?

Submit your details today for a FREE, no obligation, life cover check.

We will tell you whether you can save money.

Click here >

Facebook