Understanding Mortgages for First-Time-Buyers
Navigating the mortgage market can be daunting for first-time buyers. PBS Mortgage & Financial Advisors will help you make this first step with confidence. With our experience and guidance, we will help you understand all the available options, so you can make an informed decision on the best mortgage for you.
Deposit Size
Simply put, the larger your deposit, the better the mortgage rate available. Higher deposits usually make for lower monthly payments and paying less overall interest. Most lenders require a minimum deposit of 5% of the property’s value; at PBS we can access exclusive mortgages available to first-time buyers with lower deposits.
Credit Score
Your credit score plays a crucial role in determining your mortgage eligibility and the interest rates offered to you. Before applying for a mortgage, we check your credit report for any discrepancies and we’ll help you work on improving your credit score so you can get accepted for a better deal.
Affordability
Lenders will assess your affordability based on your income, outgoings, and financial commitments. It’s essential to ensure that your monthly mortgage payments are manageable. We will help you understand how much you can borrow and the different amounts each lender will offer.
Interest Rates
Different mortgages come with varying interest rates. Fixed-rate mortgages offer consistent payments, while variable-rate mortgages can fluctuate, potentially offering lower rates but with the risk of higher payments. Our experience allows us to evaluate these options for your financial situation and risk tolerance.
Mortgage Term
The length of your mortgage term will impact your monthly payments and the total amount of interest you will pay. We’ll help you choose a term that balances affordability with long-term financial planning.
Mortgage Fees
When considering the best mortgage it's not just about the interest rate, fees play a crucial role too. At PBS Mortgage & Financial Advisors, we evaluate both interest rates and associated fees to calculate the most cost-effective mortgage deals for you. Lenders Arrangement fees can range from £0 to £000’s, and we also have access to exclusive offers such as free property valuations and cashbacks upon completion of up to £1,000.Our comprehensive approach ensures that you get the best overall mortgage package, not just the lowest interest rate.
Government Schemes
There are several government schemes designed to help first-time buyers, such as the Help to Buy, Shared Ownership, and Lifetime ISA. These schemes can provide financial assistance with your deposit or offer more affordable purchasing options. We’ll discuss these schemes and whether any of them might be beneficial for you.
Additional Costs
Beyond the deposit and monthly repayments, there are other costs to consider, including stamp duty (although first-time buyers may benefit from reduced rates), legal fees, survey costs, and moving expenses. Budgeting for these additional costs is crucial to avoid any surprises during the buying process.
With years of experience in the market, we’re confident that whatever your situation we’ve seen something similar before and we can advise accordingly. Give yourself the best entry into the housing market by consulting with us for your first-time buyers mortgage.
