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All You Need to Know as a First Time Buyer

Am I a First Time Buyer - Those who are looking to buy their first home, which is intended to be their main residency.


Do I Need an Agreement in Principle?

An Agreement in Principle can be beneficial to First Time Buyers as this is a conditional mortgage offer from a lender, prior to your full application. Obtaining an AIP prior to making a mortgage offer can help to convince the vendor that you’re a serious buyer.


How Much Can I Borrow as a First Time Buyer?

Your loan is based upon your financial circumstances and credit score. Whilst the offers will vary from lender to lender, those with a higher income and stronger credit score will more likely be offered a higher value mortgage.


How Can Improving My Credit Score Help?

Your credit score has an impact on both the amount a lender is willing to offer you and whether they accept your application. It’s therefore essential to ensure you are aware of your credit rating prior to making an application.


How Can Improving My Credit Score Help?

  • Make sure you appear on the electoral roll at your current address

  • Ensure your current address is correct on all of your accounts

  • Make full and timely payments on all accounts held in your name

  • If you have a low score due to a lack of credit, special credit builder credit cards can be helpful

How Much Deposit Do I Need?

It’s not unusual for lenders to ask for a higher deposit from First Time Buyers. However, for First Time Buyers they can still buy a property with only a 5% deposit. This is to encourage First Time Buyers to take the first step onto the property ladder.

What Fees Are Involved When Buying a Home?

Stamp Duty

Stamp duty is usually due on the purchase of any home. However, we recommend you check the government website for up-to-date information on calculating how much you will need to pay. https://www.gov.uk/stamp-duty-land-tax


Arrangement Fees

Mortgage lenders will ordinarily charge a fee for the arrangement of the mortgage. The amount varies from lender to lender, and some offer no arrangement fees for those in certain jobs.


Valuation Fees

Mortgage lenders require that you have your chosen property independently valued, again, these fees will vary. However, there are deals that your mortgage broker can find that will offer FREE Valuations, depending on which lender you choose.


Legal Fees

There are a range of legal fees payable during the mortgage application process, such as conveyancing and local authority searches. You will need to appoint a solicitor to conduct these functions.


Broker Fees

If you choose Manor Holmes as your Mortgage Broker, our initial consultation period is completely free. However, there will be a Broker Fee that is agreed upon obtaining your Decision in Principle taking place.


How can Manor Holmes Help First Time Buyers?

Buying your first home is a huge responsibility and can be quite difficult to understand the process being a First Time Buyer. However, we have access to hundreds of products and can also advise which lenders are most likely to accept your application before applying for a mortgage. This will save you time, money, and potential disappointment of a rejected application.


We are here to guide you onto the property ladder.

Your home may be repossessed if you do not keep up with your mortgage repayments.

11th November 2022

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