First Time Buyers
Buying a first house can be complex and time-consuming. As your mortgage broker, we are here to help make the process smoother and to ensure you find the right mortgage for you.
We often get asked what's involved?
Typically the house buying process looks something like this:
Establish your moving costs
Find out how much you can borrow
Start searching for a property
Arrange a viewing
Make an offer
There is nothing like the feeling of when you get the keys to your new home.
We helped Jonathan and Seniz into their first home.
FAQs
MORTGAGE
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A document from your mortgage provider telling you how much they might be prepared to lend you. Also known as a Decision in Principle.
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A type of loan that lets you borrow money from a lender to pay for a property. The loan is secured against your property and you will need to make monthly payments to pay back the loan over the agreed term. If you can’t keep up with the scheduled repayments, the lender has the right to start repossession proceedings.
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The amount of money a buyer is contributing to the purchase price. Usually a mortgage covers the rest.
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The amount you have to pay back each month to your mortgage provider.
What is the Annual Percentage Rate (APR)?
The amount you pay each year to borrow money. This reflects the interest on your loan and all other charges. -
The interest rate set by the Bank of England (BBR), which is used as the benchmark by other financial providers when they’re setting their charges. This can have an impact on mortgage interest rates if the BBR moves up or down.
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If you switch to a different mortgage or pay off your mortgage while you are still in the ERC period, you may have to pay a sum to your lender. Some mortgage products have no ERC period.
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An assessment carried out by the mortgage lender to confirm the value of the property.
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A mortgage with a variable rate, which usually track the base rate set by the Bank of England.
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An interest rate that can change over time. A lender can decide if it wants to increase or decrease its variable rate mortgage, and these sometimes come with an initial discount too. Alternative, a tracker rate mortgage moves with BBR, as outlined in the terms and conditions.
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A government scheme set up to help anyone struggling to save a deposit, such as first-time buyers who feel priced out of the housing market.
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These are not common nowadays but is a fee charged by some mortgage providers if you take out a large mortgage, due to the larger risk this may carry for a lender.
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The ratio between the value of the loan you’ve taken out and how much the property is worth.
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An insurance policy covering the cost of repairing or rebuilding your home if it suffers serious damage in a storm, fire, flood or other disaster.
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An insurance policy covering items that aren’t attached to the property, such as furniture, appliances and personal possessions, in case they’re accidentally damaged or stolen.
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The formal offer given by a mortgage provider detailing how much they will lend you. This is a formal document and you should ensure you have carefully read the mortgage offer and are happy to be bound by the terms and conditions.
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A lender’s SVR is the rate you will go on to once any initial fixed or tracker rate ends. Your mortgage broker can advise you on the best options as your fixed or tracker comes to an end.
PROPERTY
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An arrangement that gives you outright ownership of a property and the land it is standing on.
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A contract that means you can occupy a property for a specific period of time, and will probably have to pay ground rent to the freeholder every year.
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A property that hasn’t yet been built, and only detailed plans for it currently exist.
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When you’re buying a property, the buyer might want to arrange for a surveyor to inspect the building to identify any faults, structural problems and any other potential issues. This is different from the survey carried out for a mortgage valuation, which is carried out by the lender.
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A report outlining the general condition of a property to identify if there are issues such as subsidence and damp that could mean repairs are needed in the future.
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A comprehensive report on the condition of a property, looking at everything from the roof and walls to the plumbing, electrical wiring and drains. This could be crucial for anyone purchasing an older property.
LEGAL PROCESS
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The legal transfer of property from one owner to another.
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A legal document stating who owns a property
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An agreement between the buyer and seller outlining the terms and conditions of the sale. This will be drawn up by your Conveyancer or Solicitor.
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An early version of your contract, covering details such as the agreed sale price of the property, the address and the names of the seller and buyer.
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The property owner has accepted an offer made by a buyer, but it’s not yet legally binding as no paperwork has yet been completed.
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An application to the local authority for details on any issues that may affect buying or selling a property. This could include the property being situated in a conversation area, subject to a tree protection order or being a listed building.
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Fixtures are items that are fixed to the property, such as walls, and fittings are items that aren’t attached, such as furniture.
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A fee to the Land Registry that must be paid when you register that you’re the owner of a property.
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When your Solicitor or Conveyancer works with the local authority to find out any information that may be relevant to a new owner, such as local development plans.
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Extra charges that arise while you’re buying a property, such as Land Registry fees, search fees, Land and Buildings Transaction Tax and stamp duty. This money will be given to your Conveyancer or Solicitor and they’ll pay it to the relevant parties on your behalf.
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The point at which contracts are exchanged and you’re legally committed to completing the purchase.
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A tax you must pay when you buy a new property that’s set by the government.
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Legal documents that prove you are the owner of a property or piece of land.
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When the sale has been completed and you’ve become the legal owner of the property
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The date when the legal process of buying a house has been completed, the documents and funds have been distributed to the right people and the estate agent is told to give you the keys to the property.
