How to get the best deals on property as a first-time buyer

Are you searching for the best deals on your property as a first-time buyer? A mortgage is the best source to find profitable deals on real estate for a novice.  As a first-time buyer, you might be confused about many things. 

In this guide, Estate agents in Welling will introduce you to the methods on how to get a mortgage, what deposits you will require and what best deals you can obtain in the UK. You will also come across the application processors of mortgages in the country. Let’s dive into exploring the best deals on real estate for an amateur.

What is a mortgage? 

A mortgage refers to the type of loan a person takes to maintain or buy a property, land, home, or any kind of real estate. The payment is then bestowed by the person in instalments to the lender. Adequate interest is then imposed on the buyer along with loan capital. The property persists as collateral for the loan.

What is the amount of deposit required?

If you want your mortgage to get passed, you need to deposit at least 5% of the total cost of the property to the lender. Hefty lenders including NatWest, Lloyds, Santander, Barclays, and HSBC furnish mortgages at the same deposit rate. 

Although the deposit is 5% of the total amount, still the chances of getting a mortgage increase in case of higher deposits by an individual. It also decreases the overall rate of interest imposed on the loan. 

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This deposit is given an official term called the loan to value (LTV). If any real estate property costs £625,000, and the purchase rate is around £425,000, then a first-time buyer doesn’t have to give any stamp duty.

Check for the availability of the best mortgage deals

There are several kinds of mortgage deals available in the market. You should compare all the present options skillfully. To calculate the real value, you need to enter the details of the kind of property required. They will calculate the number of monthly repayments and interest on their own. The monthly repayments rates usually vary from £1048 to £1142. 

When to start the application process for a mortgage?

You get a rough idea of how to get a mortgage. Now the question is, what is the best time to apply for a mortgage? You should start applying as soon as you start the property exploration. The lender will provide you with AIP (mortgage agreement in principle). It remains valid only for 30 to 90 days. It is just a proposal and not a guarantee of getting a mortgage.

What does a first-time buyer mortgage statement contain?

A first-time buyer mortgage statement contains a whole bureau of what a buyer earns, spends, and saves. It roughly assesses the money a buyer can pay in a month. The expenses also contain grocery bills, entertainment costs, car spending, costs, debts, etc. Based on this statement, a lender decides how much amount is to be provided to the buyer. The term is signed for 25 to 30 years but this term also depends on the persona and his/her age.

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Who can act as a guarantor?

You can either opt for a government-aided loan scheme or your family members can also act as a guarantor in real estate loan cases. The government usually furnishes up to 20% loans to the buyers on 5% deposits. This figure varies depending on the locality. You can also make a family member a guarantor where he/she will be responsible to fill the monthly repayments in case the buyer fails to do so. Lifetime ISA is another source of guarantor mortgage schemes.

Hence, this was all about how to get the best deals on property as a first-time buyer. This guide has introduced every process and deal possible to obtain a mortgage for your real estate. Go through it, make a list of above mentioned points and organise the grand home entry of your real estate property.

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