What qualifies me as a First Time Buyer?

From a mortgage lender's standpoint, if you presently do not own a property, or if you are part of a joint application where neither of you currently owns a property, most lenders will categorise you as a first-time buyer.

For stamp duty purposes, if you have never previously owned a property, or if you are part of a joint application where neither of you has ever owned a property, you will be designated as a first-time buyer.

Starting from September 22nd, 2022, first-time buyers purchasing a home valued up to £425,000 in England and Northern Ireland are exempt from paying any stamp duty. For properties priced from £425,001 to £625,000, a 5% stamp duty is applicable, but solely on the portion exceeding £425,000.

Are there any specialised mortgage offers for First Time Buyers?

In reality, the majority of mortgage rates are equivalent for first-time buyers and those advancing on the property ladder with a new acquisition. However, certain products are tailored to appeal to first-time buyers, including options that demand merely a 5% deposit for individuals with limited savings or those that provide cash back upon completion. It's crucial to assess the advantages of these deals in relation to the overall mortgage costs.

How do you secure a First-Time Buyer mortgage?

The procedure for applying for your first mortgage is precisely identical to that of applying for any other mortgage.

1. The initial step you should take is to discover the most suitable mortgage product that suits your specific circumstances. This can be rather challenging if you are unsure where to locate a comparison of the thousands of mortgage deals on offer. Even if you've identified the most cost-effective product, you may not meet the eligibility criteria. Each lender establishes its own set of standards for evaluating applications.
2. A whole-of-market mortgage broker has the capacity to access the complete array of mortgages available in the market. They can also ensure that you meet a lender's criteria by evaluating your circumstances in advance. This has the potential to save a considerable amount of both time and money.

At I.I Financial Services, we provide a complimentary service for First Time Buyers (FTB). This service offers you the following benefits:

1. Direct access to an experienced mortgage adviser.
2. An evaluation of your personal circumstances and an assessment of your affordability.
3. An illustrative breakdown that details all associated costs and essential information regarding the mortgage we recommend as the most suitable for you.
4. A Decision in Principle from the preferred lender, should you require it. This step can uncover any issues within your credit history, which is often a requirement by estate agents.
5. A comprehensive discussion regarding the most appropriate mortgage term, with a thorough explanation of the advantages and disadvantages of various products, including the distinction between a 2-year and 5-year fixed-rate mortgage.
6. A no-time-limit opportunity to address any questions or concerns you may have.
7. Guidance on how to effectively engage with estate agents to secure your purchase at the most favorable price.

I.I Financial services can guide you towards reputable professionals we collaborate with, ensuring you have a reliable network of support.