First Time Buyer mortgage

Buying your first home is exceptionally exciting but can also be daunting as everything is new!

Don’t worry, we will hold your hand and guide you through the full process from start to finish.

First time buyers are sought after by Vendors as they are chain free! 

First time buyers can also benefit from government schemes aimed at helping them onto the property ladder.
 

Get saving for a deposit

Its hard! We know..but the bigger the deposit the easier it will be to get on the property ladder and the wider the choice of mortgages you’ll have available to you.

If you’re struggling to save, come in and see us, we can help you with a budget planner that will help you decide what is essential costs and what you could squirrel away to get the new home you are dreaming of.

The ISA

The Lifetime ISA (Individual Savings Account) was designed to help first time buyers save up a deposit.

You can put in up to £4,000 each year, until you’re 50. You must make your first payment into your ISA before you’re 40.

The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year.

You will incur a lifetime ISA government withdrawal charge (currently 25%) if you transfer the funds to a different ISA or withdraw the funds before age 60 and you may therefore get back less than you paid into a lifetime ISA.

By saving in a lifetime ISA instead of enrolling in, or contributing to an auto-enrolment pension scheme, occupational pension scheme, or personal pension scheme:

(i) you may lose the benefit of contributions from your employer (if any) to that scheme; and

(ii) your current and future entitlement to means tested benefits (if any) may be affected.

The Bank of Mum & Dad 

Those of you fortunate enough to have family who are prepared to provide you with financial help, there are various ways they can support you. For first time buyers the bank of Mum and Dad accrues for over half of the deposits for new homes.

They may help you out with a gift, or they may act as guarantors for you. Some mortgages are specifically designed with parental support in mind, enabling spare equity in the parental home to be used as additional security.

Parents who agree to become joint owners and who also own their own home must remember that this could lead to a capital gains tax (CGT) liability and incur a stamp duty surcharge on the additional property.

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