Buying your first home can be an exciting prospect, though it can also be extremely daunting. Along with feeling overwhelmed as to where to start in the first place, there’s the looming prospect of finding it difficult to qualify for the mortgage you require.
Which is precisely why it is of the utmost importance to ensure that you explore all available options to you, before going ahead and making your first application. Always remember that any application that is rejected could have a negative impact on your credit score – ultimately making it even more difficult to qualify the next time around.
With the help of UK Property Finance, we can ensure you know and understand the various options available to you, in order to ensure you make the best possible decision.
There are various government schemes currently available specifically to help first-time buyers get on the property ladder. As these schemes and their respective qualification criteria are changing all time, it’s important to thoroughly investigate all options around the time you are looking to apply.
Likewise, many lenders – traditional and alternative – offer a wide variety of loans and mortgages specifically designed for first-time buyers. While all mortgage products are technically available for first-timers, qualifying for a conventional mortgage can be difficult.
Traditionally, mortgage lenders have always calculated maximum loan amounts on three times the applicant’s gross annual earning. These days however, most banks and building societies are willing to consider the bigger picture – given the ever-escalating costs of properties in the UK. As such, don’t be put off the idea of buying your first home if your annual salary alone doesn’t meet traditional requirements.
Deposits can also prove tricky for first time buyers, though there are countless avenues to explore. One of which being the prospect of a 95% mortgage, where just 5% is required to secure the loan and qualify. If your credit score isn’t strong enough or your annual salary is deemed insufficient to qualify, it’s worth exploring the option of a guarantor mortgage. Which is essentially where another individual in a stronger financial position agrees to guarantee the mortgage on your behalf.
Outside the traditional lending arena, there are countless alternative options available to the traditional first-time buyer mortgage. From secured loans to bridging finance to development finance and so on, what represents the best loan for you will be determined entirely by your current position. Nevertheless, the important thing to remember is that irrespective of your current financial situation, there are always multiple options available that are worth exploring.
Given the complexity of both the subject and application process, it is always advisable to speak to an independent broker or adviser before going ahead. By gaining a deeper understanding of the various options available to you, you stand a much better chance of targeting the kinds of loans you can both qualify for and comfortably afford to repay.
Get in touch with the UK Property Finance team today for more information on any of our services, or to arrange an obligation-free quotation.