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First Time Buyers

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MORTGAGE ADVICE FOR FIRST TIME BUYERS

Why Mortgages

A mortgage is often the biggest financial commitment of a person's life. These are the top 3 questions first time buyers often ask us - and our answers - so you can get started.

 

HOW MUCH CAN I BORROW?

Whether you’ve found your dream home or are just starting your search, you need to know how much you can afford. Each lender uses its own affordability calculator with varying level of complexity.

The term of the loan, deposit, number of dependants, credit status and even sometimes the mortgage product you choose will change the amount you can borrow and ultimately the monthly cost dramatically, so exploring your options and making the right decision is crucial.  

As a rough guide, the following Calculation is what you could potentially borrow though actual lenders may offer significantly more or less:

First applicant (income x4) + (bonus x2) + second Applicant (income x4) + (bonus x2)

Contact Mortgages by Moneybrain to get information that is accurate for your circumstances

 

HOW MUCH WILL IT COST?

The main costs you might face when remortgaging are:

Lender’s arrangement fee

The administrative costs of organising your mortgage. This could be a flat fee or a percentage. Your Mortgages by Moneybrain adviser will be able to advise you of arrangement fees that apply to your mortgage.

Higher lending charge

If the mortgage you are taking out is a sizable percentage of the property value (typically >75%), lenders may make a charge to insure themselves in case you default. 
Your Mortgages by Moneybrain adviser will be able to advise you of any higher lending charge that may apply to your mortgage.

Valuation fees

Your Mortgages by Moneybrain adviser will be able to advise you of the costs of hiring a surveyor to assess the property’s condition and value.

Legal fees

Your Mortgages by Moneybrain adviser will be able to advise you of the costs of hiring a solicitor for the process of preparing the deeds and carrying out the conveyancing process.

Booking fees

This is a one-off application fee for the mortgage, “booking” or reserving the capital while processing your request. Your Mortgages by Moneybrain adviser will be able to advise you of the costs of any booking fee that applies to your mortgage.

How Do I Choose A Property?

Do...

Start with choosing your area.
Your criteria might include having a good school nearby, local transport links and convenient shops or restaurants.

Be clear on what you want.
House or flat? How many bedrooms? Being clear on your requirements will help you narrow your search and help estate agents be more specific

Contact as many estate agents in your desired location as possible.
Ask them to send you details of suitable properties on their books on a regular basis.

Don't...

Forget to consider the additional costs. 
On top of mortgage payments, make sure you consider your utility bills, maintenance bills, Council Tax, any renovation work and other property bills.

Be inflexible. 
Be prepared to trade off one factor for another as you look around, e.g. you might be prepared to live in a cheaper area if that means having a garden.

Keep a short-term view. 
Your job might change and your friends might move, so don’t use these as a basis for making decisions about where to buy your long-term home.

 

What Is The Process For Getting A Mortgage

A) MAKING CHOICES

Choosing a property

Your criteria might include having a good school nearby, local transport links and convenient shops or restaurants.

Choosing a mortgage

Our advisors will manage your entire application, taking you through the whole process from start to finish. 

B) DEPOSIT

You will need to provide a deposit and more attractive mortgage deals can be obtained with larger deposits. Although the deposit does not need to be paid until exchange of contracts, you will probably need to prove that you have these funds at the outset, to show the lender you are not borrowing the money from elsewhere and therefore increasing your monthly outgoings. When considering the level of deposit you should bear in mind the other costs associated with buying a property, such as valuation costs, solicitor’s fees and potentially stamp duty.

Average cost: from 5% of purchase price upwards. So for a £250,000 property, you would need £12,500 for a 5% deposit

C) MAKING AN OFFER

Armed with the knowledge of how much you can borrow, it is easier to select a property when you have a price range to work within. Once you have found somewhere, you need to make a formal offer to the vendor confirming the price you are willing to pay (this is usually carried out via an estate agent). If the vendor accepts your offer, you can move on to the next stage.

Average time: 2-4 weeks for an offer from lender, provided you have submitted all required information


 

How Can Money Brain Help?

We save you the hassle

Our highly trained, professional advisers work with you every step of the way to make the mortgage process simple, saving you time and effort on one of life’s biggest decisions.

We offer a comprehensive Range of First and Second charge mortgages

Going to a bank or estate agent limits your options and leaves you at risk of getting a bad deal. We have access to hundreds of products across the whole mortgage market and can find you the ideal product for your needs.

We can save you money

By hand-picking your mortgage and negotiating the most competitive rates (for your situation) on your behalf, we can save you up to tens of thousands throughout the term of your mortgage.

 

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED UPON IT


Company

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We are a small, creative team, specializing in mortgages and insurance for those that need it.

Address

Moneybrain (L) Ltd T/A Mortgages by Moneybrain, Innovation Centre Medway, Maidstone Road, Chatham, Kent, ME5 9FD

01634 921636
info@mortgagesbymoneybrain.co.uk
Mo-Fr: 9.00 - 18.00

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