Lockhart Grey Financial Planning Ltd

At Lockhart Grey Financial Planning, we will help source the first time buyer mortgage that best suits your own individual circumstances.  If you require we can also arrange the legal/conveyancing service for you and arrange any house surveys required to be carried out.

Typically for a first time buyer mortgage you may have to provide a 10% deposit for the purchase of your first property.  However there are lenders who are prepared to offer mortgages with as little as a 5% deposit.

If you do not have a deposit do not worry, there are a limited number of mortgage lenders who will give you a 100% mortgage on the purchase price and therefore no deposit is required on your behalf.  This type of mortgage deal is very limited and come with strict lending criteria.

If you are looking for a bad credit mortgage or a poor credit mortgage then we are able to source a lender and product that will suit your adverse mortgage needs. Your first time buyer mortgage finance will depend on your own financial situation.

As stated, buying your first house, getting a first time buyer mortgage or moving home can be a very daunting experience. Even those who have moved home many times before find the whole process can be very complicated and confusing.

With Lockhart Grey Financial Planning’s Mortgage Service it’s never been easier to own your home. We can guide you through the first time buyer mortgage process, explaining exactly what happens at each stage and in a language you understand. We can help you in dealing with an estate agent, provide an experienced solicitor and will help you through every step to completion via our experienced mortgage processing team.

For more information on First Time Buyers mortgages please fill in our quick enquiry form, or call us for a free, no obligation, consultation. You may also find our mortgages glossary useful to explain some of these terms.

Remember it is in lenders’ interest to provide you with a mortgage, as long as they do not feel you are stretching yourself.  They want your business.  A mortgage is generally a lower risk to them, compared to a personal loan, or a credit card, as they always have the house to “secure” the loan against if you are unable to make your payments.

To assist you find the ideal first time buyer mortgage here are a few tips that might be helpful…

Tips for the first time buyer – A few things to consider 1,2,3,4

1. Buying a House vs. Renting – Is house purchase right for you?
2. I’m a first time buyer, how much can I borrow?
3. Searching for a house for the first time buyer
4. First time buyer – financing your house purchase

1. Buying a House vs. Renting

Lockhart Grey Financial Planning Ltd are Whole of Market mortgage brokers, therefore we can offer you the best mortgage deals and advice from the whole of the market place and have exclusive products that are not even available to the general public

To begin with you have to decide whether you wish to buy a house, and if you understand all the responsibilities and risks involved.

Hopefully the following information should help you, by focusing on the key advantages and disadvantages of buying a house or renting.

Buying a House

Advantages
• Becoming a home-owner can be seen as a major investment.  Assuming you pay off the mortgage over the years you may well be left with a very valuable asset.  This may eventually pass on to your family if you so desire.
• Its your house so you have the freedom to make any changes to the property that you see fit.
• When it comes to property maintenance you are not dependant on a landlord.
We have seen greatly increased house prices over recent years, so home ownership offers great potential financial returns

Disadvantages
• The cost associated with house purchase can be expensive. These include legal fees, estate agent fees and stamp duty.
• You are responsible for repairs to the property.
• Negative equity – If your house price falls, then you may owe more on your mortgage than the value of your property.

Renting a House

Advantages
• Substantially lower start up costs. Although a deposit may be required, there are very few other up- front costs. If the property is furnished, this lowers costs further.
• It is far easier to move property. Many rent because it offers them the flexibility of relocating with relative ease.
• The landlord is responsible for maintenance and repairs of the property.

Disadvantages
• The possibility of eviction or non-renewal of lease means a sense of insecurity when renting.
• You have no tangible asset for the rent you have paid, this belongs to the landlord
• Rogue landlords applying nil or poor maintenance which may lower the quality of your accommodation.

2. How much can I borrow?

Before looking for a house, you have to understand how much you can spend on it. How much you spend on a house is an obvious factor in relation to your monthly mortgage payments and if this is affordable to you.

To help give you figure of your potential borrowing capacity, we recommend trying our simple Maximum Borrowing Calculator.  This should help to quantify how much you should be able to borrow.  Remember your borrowing capacity will be determined by your own financial circumstances

Factors that can affect how much you can borrow and the interest you would pay include; your salary, whether you put down a deposit (and how much compared to the loan to value) your credit history, existing credit commitments, lenders affordability calculators, type of property, type of employment and the Bank of England interest base-rate.

For example, consider a person that earns £30000, each year.  If he/she has monthly outgoings of £500 per month and no other income, the Maximum Borrowing Calculator shows that most banks will offer this person a loan of £180,000, and a few borrowers would give a mortgage of £210,000.
Now that you have some idea of how much you can spend, you need to start thinking about what you are looking for in your new home.

3. Searching for a House

We explain how you go about finding the right house, and what factors you should consider when deciding on a property.

You should now have a rough estimate of how much you can afford on a home. If not, please take a look at our Borrowing Capacity section or call us free on 0800 5876610 to discuss your borrowing requirements in person
There many factors to consider when deciding on a property.

The three major decisions to make before any other considerations are:

a) Location – What area do you want to be based in? Would you prefer to live in the city centre, the countryside or how about in the suburbs? Is commuting an issue, transport links, local infrastructure and the type of community you wish to live in?  All estate agents will tell you that the three biggest factors that affect the long-term value of a property are “Location, Location, Location!”

b) Type of property – Do you want to live in a house or flat? If you choose a house, what type of building do you want? Detached, semi-detached and terraced? When it comes to flats, you should think about whether you wish to live in a large complex or a smaller converted building. Do you want to live on the ground floor or higher up? What shared communal facilities are available?

c) Size of property – If you are planning a family, you may wish to consider a property large enough to accommodate everyone in the short- and medium-term. This should enable you to decide the number of bedrooms you wish to have in your new home.

If you have roughly decided on the location, visit the estate agents in that area.

You can then provide more detail to the estate agent as to the type of property you wish to purchase along with other features i.e., condition and age of property, parking, proximity of schools/tube/bus, shops etc any other issues that may concern you can be addressed by the estate agent. Do not just visit one but visit several estate agents in the area you have targeted, as any new property will only be held by one estate agent.

Happy house-hunting!

4 – Paying for it!

As an Whole of Market mortgage broker, we can offer you the best mortgage deal from the whole of the market place and have exclusive products that are not even available to the general public

Terms such as “higher lending charge”, “loan to value ratio”, and “early redemption penalties” may sound very confusing when explained for the first time, and it is important to get as much advice as possible. Lockhart Grey Financial Planning mortgage advisers can explain any of these terms to you, and offer a free, no obligation mortgage quotation service.

Please fill in our quick enquiry form, or call us for a free, no obligation, consultation. You may also find our mortgages glossary useful to explain some of these terms.

Remember it is in lenders’ interest to provide you with a mortgage, as long as they do not feel you are stretching yourself.  They want your business.  A mortgage is generally a lower risk to them, compared to a personal loan, or a credit card, as they always have the house to “secure” the loan against if you are unable to make your payments.