If you’re thinking about buying your first home you’re probably finding the whole process of choosing the right mortgage and actually buying your ideal home rather daunting? So what do you need to know to get onto the first rung of the property ladder?

The first step is to contact us today on 01455 208888 or email enqs@alphaomega.org.uk and we’ll advise you on the mortgage options available to you.

But in the meantime we’ve outlined below some background information on mortgages for first time buyers that we hope you’ll find useful.

How much can you borrow?

The amount that mortgage lenders will typically lend depends on your income.

As a rough guide the usual multiples are 3.25 times the gross salary of single borrowers. A couple can get 3.25 times the first income plus one times the second income. However, you could get 2.5 times the combined income of both of you. These multiples do vary from lender to lender so it is worth talking to one of our experts to find out what is available.

Once you add to this the amount that you can afford to pay as a deposit, you have the amount you are able to obtain to purchase your first property. However, you should consider the amount of money you can afford to borrow, being offered money is one thing but you must ensure that the monthly payments are affordable throughout the loan.

Some lenders offer very good deals for first time buyers, where for example there is more flexibility, and no deposit required.

COSTS INVOLVED IN BUYING A HOUSE

Valuation fee

Most lenders charge for checking whether or not the property is adequate security against the mortgage, this fee will need to be paid on application, although an increasing number of providers are doing this for free or refunding the cost after completion.

Arrangement fee

Normally charged by the lender when selecting a specific rate other than the standard variable rate e.g. a fixed rate mortgage. Similarly, an arrangement fee for our service will be charged, which can either be paid upfront or added to the loan

Higher Lending Charge

This is a one off insurance premium that many lenders charge, once the loan to value exceeds 90%, although a small number, charge it once the loan exceeds 75%. If charged, it may be added to the loan.

Stamp Duty

This is a government tax applied once the purchase price exceeds £125,001, charged at 1% up to £250,000. For purchase prices in excess of that amount, a rate of 3% applies up to £500,000 and 4% over that amount. This will be payable to the solicitor at completion.

Solicitors

A solicitor will carry out all the legal contract work on your behalf including completing local searches; typical cost of this would be £700 approximately but this should be agreed with a solicitor prior to commencement.

What can we offer you?
As we have access to thousands of mortgages with a huge range of lenders, we can offer a wide range of first time buyers’ mortgages with some special features:

Whatever your mortgage requirements, we’re certain we can find the mortgage for you.
So if you have found your ideal home, but need help reaching that all important first rung of the property ladder, talk to us today on 01455 208888 or email enqs@alphaomega.org.uk