Why should first time buyers take mortgage advice from a mortgage broker?

Monday 17 February, 2020

In September 2019 a Lonsdale Mortgages first-time buyer client reviewed us on Google. 

“Used Amy for my first home purchase, excellent service throughout. Will definitely use again. Thank you Amy and team!”

Why use Lonsdale Mortgages for mortgage advice?

Our Lonsdale Mortgages broking team do not typically charge you a fee for our mortgage advice or service as we get paid commission from the lender when your mortgage completes,  except in instances where we organise additional borrowing for a client with their existing lender, as some providers do not offer commission.

If you want mortgage advice call our mortgage broking team now on 01727 845500 or complete our booking consultation and one of our mortgage brokers will contact you.

Amy Kadir, Lonsdale mortgage broker, St Albans, Hertfordshire said:

’We work with many first-time buyers looking to purchase a property in St Albans, London Colney, Park Street, Watford, Luton, and Wheathampsted. I always recommend any first-time buyers take mortgage advice as soon as they decide they want to purchase a home. We can review your income and expenditure, check your credit rating and advise you on exactly how much you will be able to borrow from the lender and what type of mortgage is best suited for your financial circumstances. We offer mortgage advice on a variety of mortgage products including, variable rate mortgages, fixed rate mortgages, capped rate mortgages and discount rate mortgages. We recommend you speak to a mortgage broker before you make an offer on a new home, because if you have your mortgage ready to go before you find the house you want to buy your offer is more likely to be accepted and you will be in a position to move quickly and complete on time.  Using a mortgage broker saves you time as we liaise with your mortgage lender and solicitor on your behalf.’

Number of first-time buyers at a 12-year high

Research in January 2020 by Yorkshire Building Society using the UK Finance Data and mortgage estimates for November and December suggest that last year the number of first-time buyers reached its highest level since 2007.  The first-time buyers share of the mortgage market was at its highest since 1995, representing over 50% of all houses bought with a mortgage.

Why are first-time buyers in a good position to get an offer accepted on a property?

1. Interest rates

We have seen the average interest rate on some two-year fixed rate mortgage deals fall. These mortgage deals are often popular with first-time buyers as they require a small deposit, typically only 5%.

2. Shortage of properties

According to the Royal Institute of Chartered Surveyors (RICS) in the first half of 2019 the number of properties coming onto the market fell and supply is still a problem in some areas. First time buyers can benefit if there is a lack of supply as they don’t have to sell a home and can set up their mortgage before they agree a house purchase.

3. Government schemes - Lifetime ISA

Although the Help to Buy ISA ended on the 30th of November 2019, many first-time buyers took advantage and opened one before the deadline. If you are a first-time buyer, you can still open a Lifetime ISA (LISA) which pays first time buyers a bonus on any deposit saved for your first home. However, please note that the Lifetime ISA is not appropriate for everyone and a withdrawal charge could apply in certain circumstances so you may get back less that you paid in.  To see if this product is suitable please call one of our Lonsdale Mortgage brokers on 01727 845500 or for more information read: Aaron Abraham - Should millennials open a Lifetime ISA? 

4. Stamp duty exemption

First-time buyers in England and Northern Ireland can benefit from stamp duty exemptions on properties worth up to 300,000.

5. New mortgage deals for first-time buyers

Lenders are offering more mortgages for first time buyers; these include mortgages where parents can be guarantors, or you buy your home with a parent.  For example, if you buy a property with a parent you both will be named on the mortgage but only you have your name on the deeds. This enables you to take out a bigger mortgage by benefiting from your parent’s income and you won’t miss out on stamp duty exemptions.

In summary…

If you are a first-time buyer and want to make the home buying process easier please contact our mortgage broking team on 01727 845500.  We work with many first time buyers living in Hertfordshire and North London.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.

 

 

 

 

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