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 mortgage deal still require a Deposit of at least 5%, meaning you require 5% of the purchase price of the property to enable a purchase.
Currently, many of these Low Deposit deals sit in the UK whole of market arena, and are not available on the Scottish High Street, so it is essential you contact a UK Whole of Market Mortgage Adviser who can access such deals on your behalf, and who can provide you qualified 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 5% to 10% of the value of the place you want to buy. The higher your deposit, the less borrowed and the less interest you will 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 to be sure, simply ‘get in touch’ for qualified 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 – up to £125,000 (zero tax). over £125,000 to £250,000 1% will apply. Over £250,000 to £500,000 3% will apply.
- Buildings and contents insurance – usually around £20 -35 per month dependant on cover required and the property in question.
- Protecting your family 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.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE