First Time Buyers
Independent, impartial, fee free mortgage broker for Bristol and Bath.
Thinking of buying your first home in the Bristol area?
Congratulations on taking the exciting first step toward owning your dream home! At AB Mortgage, we understand that embarking on the homebuying journey can be both thrilling and overwhelming. That’s why we’ve created this dedicated section to guide you through every aspect of the process for first time buyers. Let’s kickstart your home buying journey. In this section we’ll break down how mortgages work and help you consider important factors when choosing the right mortgage deal. We’ll walk you through the entire home buying process and share valuable tips. Plus, you can check out the latest mortgage deals on the market and find answers to common questions in our FAQs.
Let’s define a first-time buyer
Be mindful, you may not fall under the category of a first-time buyer if:
- You currently own another residential property anywhere in the world.
- You’ve previously owned another residential property anywhere in the world.
- You inherited a property, even if you never lived in it, and subsequently sold it.
- You own or have owned a commercial property with living quarters attached.
Please note that you might not qualify for certain first-time buyer benefits if:
- You’re securing a joint mortgage with someone who has owned a residential property (although you may still be eligible for some benefits if you’re a first-time buyer taking out a joint borrower sole proprietor mortgage with an immediate family member).
- A parent or guardian who owns their own home is purchasing this property for you.
If you’re not considered a first-time buyer, you won’t be able to access exclusive first-time buyer mortgage deals. However, this doesn’t mean you won’t be able to secure a competitive rate. Many products available to first-time buyers are also accessible to homeowners. Our expert brokers are on hand to help you find an excellent mortgage deal that suits your specific needs..
Discover great mortgage deals for first-time buyers:
Getting your first home should be a fantastic experience, not a stress-fest. But let’s be real, diving into the mortgage world can feel a bit like decoding a secret language – repayment mortgage, fixed rate, standard variable rate, and a bunch more. And who’s an expert on the whole house-buying scene anyway?
Here’s the deal: No need to navigate this journey alone. We’re not just about hooking you up with the best mortgage deal that suits your style; we’re also here to unravel all those mortgage terms and guide you through the entire home-buying journey. From start to finish, we’ve got your back, ensuring you’re in the know and feeling confident every step of the way. Let’s make this home-buying thing a breeze!
First-time buyers step-by-step guidance
Determine your borrowing potential
Begin by understanding the amount you can borrow, a figure shaped by your income, outgoings, and the deposit you’re able to contribute. Our user-friendly first-time buyer mortgage calculator provides an initial estimate of your borrowing potential.
Calculate your manageable deposit
Determine the deposit you can comfortably afford. Traditionally, a deposit is around 5% of the property’s value. Yet, if you can save beyond this threshold, you unlock access to mortgages with more competitive rates, thanks to being perceived as a lower-risk borrower. Check out our guide on purchasing your first home with a modest deposit for additional insights.
Factor in Additional Expenses
In addition to saving for the deposit, allocate funds for other associated costs, such as legal fees and moving expenses. Being financially prepared for these extra outlays is vital for a smooth home-buying process.
Understand different mortgage types
Familiarise yourself with various first-time buyer mortgages and how they operate. If budget management is a priority, a fixed-rate mortgage could be your top choice. Alternatively, if you’re comfortable with slight monthly payment fluctuations and value flexibility, a variable rate deal might better suit your preferences.
Calculate monthly repayments
Ensure the chosen mortgage aligns with your budget by computing monthly repayments. While a longer mortgage term may translate to lower monthly payments, it’s crucial to recognise that this could result in higher overall interest payments, and vice versa.
Government Schemes and Expert Advice
Explore government-backed schemes like Help to Buy or Shared Ownership. Understand eligibility and benefits. Seek advice from a reputable mortgage broker to find the most suitable mortgage for your needs.
By following these practical steps, you can make well-informed decisions that align with your financial situation.
Help for First-time buyers: Exploring Support Schemes
For those stepping into the realm of homeownership for the first time, several schemes have been designed to offer support, making the journey towards that inaugural home more accessible. In addition to general schemes aiding in mortgage support, specific initiatives cater to the unique needs of first-time buyers:
Stamp Duty Land Tax Exemption
First-time buyers enjoy an exemption on Stamp Duty Land Tax up to a specified property value threshold, reducing additional costs associated with home purchasing.
Mortgage Guarantee Scheme
Empowering first-time buyers, this scheme encourages lenders to offer mortgages with a minimal 5% deposit requirement, making it easier for new buyers to secure funds independently
Lifetime ISAs (LISAs)
These savings accounts offer a 25% bonus, up to £1000 annually, when funds are used for a first-house deposit, simplifying the accumulation of deposit funds. Note that withdrawing funds for reasons other than a house deposit or retirement incurs a penalty
Right to Buy
If residing in a council-owned property, the Right to Buy scheme may grant the opportunity to purchase the property, with the discount based on residency duration
Joint Mortgages
Addressing income challenges, joint ownership mortgages involve applying with another person, often a parent or relative. This enhances approval chances for a larger mortgage. Another option, joint borrower sole proprietor, includes both parties on the mortgage, but only the buyer is on the title deeds
First Homes Scheme
Geared towards affordability, this scheme allows the purchase of a new-build home at a reduced price compared to the market value. Eligibility typically requires local residency or key worker status