First Time Buyer Mortgages

What's so good about getting on the property ladder?

It is a well-known fact that mortgage payments are often cheaper or can be as much as renting (sometimes depending on the size of the house payments they can be more). If you rent for the rest of your life then you will always be paying monthly payments which will continue to rise with inflation; imagine paying your current rent plus inflation whilst on a pension. If you consider a mortgage and it is paid off after a certain length of time then closer to the end of the term your payments are going to be minimal, you have an asset at the end of it and you will live mortgage free thereafter. Once you have been on the ladder and you have gained some equity (profit in the property), you will be able to re-mortgage onto a more favourable rate because you will have more of a deposit on your new property.

How can Williams Broadley Ltd help me as a first time buyer?

We can look at your present and future situation and determine the most suitable product for your requirements. Remember that we are completely independent and therefore source the whole of the market (this includes banks, building societies and other specialist lenders) to find the best deal. We have access to over 7,500 products from over 100 lenders. We also quote for buildings and contents insurance along with life and health cover.

What is a 'headline rate'?

You will discover that as you walk into a bank/building society, they will be advertising mortgage rates that seem extremely attractive. This is known as the 'headline' rate and is a hook for the lender to gain your attention and arrange for a meeting with you. These headline rates will be correct but often have extras e.g. it may be cheap in the first year then payments increase in the second and third years or with extended tie ins with no discount rates thereafter. As an independent mortgage broker, we don't advertise 'headline rates' because our rates are changing daily and we are confident that we can find a mortgage that fits to your actual requirements.

How much can I borrow?

This depends on how much you earn and also how much you have as a deposit. As an example, lenders usually multiply your salary by 3.5 (if a sole applicant) and by 3 if joint. However, more and more lenders are now opting to lend you a mortgage on affordability. Therefore if you have affordable monthly payments on other items such as credit cards and loans, you may be able to borrow more.

How much should my deposit be?

The higher the deposit the more choices it creates and you are likely to receive a better rate of interest in the process because you are a lower risk to the lender. 10% is often a good deposit for first time buyers. However, it is possible to secure a home with as little as 3% and an increasing amount of first time buyers are opting for a 100% mortgage. Although the latter two examples have a higher interest rate, it allows first time buyers to get their foot on the property ladder sooner rather than waiting and saving up for a deposit first.

What is a higher loan charge?

This is effectively an insurance fee that protects the lender's interest in the event of repossession. Most lenders do not charge this if you have an adequate deposit. If you don't have a deposit, the Lender may impose a higher charge, although this may vary from Lender to Lender.

What if I suspect/know that I have a poor credit rating?

We specialise in advising people who have previously got themselves into financial difficulties. You'd be surprised at how many people have actually experienced this in the past as it can so easily happen. We work with specialist companies who have also woken up to this fact and are prepared to lend money all the same. The best thing you can do is be honest about this in the beginning as this will save everyone a lot of time in the process as any problems will automatically be picked up via your credit check.

Some lenders offer free home insurance and cash backs are these good deals?

Many lenders like first time buyers as they create a lot of new business. However, many lenders offer 'gimmicks' such as cash back etc but this can be reflected in a higher interest rate. Remember that the real cost is the mortgage itself and how much your monthly payments are.

I am self-employed, can I still get a mortgage?

Yes you can, we work with specialist lenders who accept self-employed applicants in either two ways.

A) If you use an accountant and have a set of accounts then this information is referred to when calculating your affordability.

B) Providing you have at least a 10% deposit, you could self-certify your income. This is where you self certify your mortgage payments, based on affodability.