A mortgage is a massive financial commitment that most of us either want, cannot afford to have or are counting down the days till we no longer have it. In most instances a mortgage is the largest financial commitment we will have in our lives, so it is no surprise that it’s not one that many of us can afford to get wrong. As a first time buyer choosing the best mortgage from the vast range of mortgage deals on offer from hundreds of lenders, can seem daunting. This is where having an expert reviewing your financial situation can not only clarify your options but save you thousands! Unlike lenders who will only offer you a range of their own products, Safe Finance will search the market for you and find you the right deal based on your budget and your circumstances.
With mortgages, you might find a good-looking deal yourself but the difficult bit is knowing whether you’ll qualify for it – especially as criteria can differ a lot between different lenders. And seeing as your home is one of the most important purchases you will make our Safe Finance expert, experienced advisers will hold your hand every step of the way, helping you with any questions you may have regarding first time buyer mortgage. It’s not just finding a mortgage deal where we can prove valuable. We’ll also help you apply for and set up your new mortgage, complete all the relevant paperwork and the rest of the process. End to End.
Your assigned specialist will ensure they keep you informed and take care of all aspects from mortgage jargon guiding you and communicating with you throughout. With our Network of National advisers we can come and visit you at a time convenient for you so why not take advantage of our Free No obligation service?
How Much Deposit Will I Need?
first-time-buyers-1In the current economic climate, a 10% deposit towards your first time home buyer mortgage can put you in a healthy position to be considered for a mortgage by your new lender. Not sure what’s affordable? Do not despair; this is what our experts are here for. Your specialist will explore and explain the different mortgage types and offers available to you. They will complete an affordability calculation with you and plan accordingly to your budgets ensuring you are comfortable with your commitments and if that isn’t enough, once your happy they will complete the whole submission process with minimal efforts required by you!
Finally, because we have access to the whole of mortgage market, you can have peace of mind that we will be able to compare the whole range of mortgage products available at that time, so rest assured you’re not expected to visit bank after bank.
Contact us for a Free No Obligation Consultation
Have you considered Stamp Duty?
When you are buying a home there are some unavoidable fees and costs involved. One of the key ones being Stamp Duty Land Tax which applies to purchases over £125,000. Stamp duty land tax (SDLT) applies to all properties as seen below unless your property is unless your property is in a disadvantaged area where separate rules apply. Whether you are buying a home or simply remortgaging, we make it our remit to ensure you are fully aware and all factors like these are transparent for you thus keeping you in control and informed every step of the way.
Up to £125,000 – 0%
£125,001-£250,000 – 1%
£250,001 – £500,000 – 3%
£500,001 – £1,000,000 – 4%
£1,000,001 – £2,000,000 – 5%
Over £2,000,000 – 7%
What is a Fixed Rate Mortgage?
With a fixed rate mortgage the amount you repay the lender each month can be at a fixed interest rate for a specified period of time, regardless of changes to interest rate in the market place. It is common for lenders to offer rates fixed for a period of 2 to 5 years, but shorter and longer periods can be found in the market. At the end of the fixed rate (or ‘benefit’) period the rate will normally convert to the lenders Standard Variable Rate (SVR).
You’re effectively taking out an insurance policy against interest rates going up. Yet of course, if rates tumble your payments will not fall. It is sometimes possible to fix for 10 or even 15 years but such long term security is expensive.
It is normal for lenders to charge up-front fees in the form of booking and/or arrangement fees. ERCs on fixed rates acts as a ‘lock-in’ making an often heavy charge for borrowers paying off their mortgage early. The ERC can sometimes last longer than the fixed rate period e.g. a 3 year fixed rate with a 5 year ERC.
What is a Standard Variable Rate Mortgage?
Borrowers paying the Standard Variable Rate will have their payments increase or decrease as the lender adjusts the rate in accordance with market conditions. The simplest and most straightforward option, though not always available to new customers.
However, many introductory fixes or trackers revert to the SVR on expiry, so it’s important to understand it. Each lender offers an SVR (or rate with a similar name) which tends to roughly follow base rate.
SVRs are generally two or more percentage points above base. As the base rate shifts up and down so lenders traditionally move their SVRs, although not always by the same amount. For example, they may only drop rates by 0.2% when the base rate drops by 0.25%, meaning they increase profits.
What is a Tracker Rate Mortgage?
This is a variable rate that is linked to the movement of a prevailing rate such as The Bank of England Base Rate or London Interbank Offered Rate (LIBOR).
The pay rate will be a set percentage amount above the relevant base rate for a specified period of time.
For example if the tracker mortgage is set at 1% above The Bank of England Base Rate for 5 years and the base rate is currently 4.75%, the pay rate will work out at 5.75%.
As their name suggests the rates of tracker mortgages change to follow ‘track’ changes in the base rate to which they are linked. So if the base rate increases by 1%, the pay rate will increase accordingly. Also if the base rate is reduced, borrowers will benefit from a lower pay rate