First Time Buyers

Newbuy Scheme a winner for first time buyersBuying your first home can be both exciting and worrying. Most first time buyers have a whole range of questions that need answering, and they need answering in plain English too. No matter how tentative your enquiry, talk to Harvey Bowes. We are happy to answer your questions and use plain English to guide you through the ‘mortgage minefield’. We have access to the whole of the market and we are experienced at advising on all of the options available to first time buyers, such as guarantor mortgages, shared ownership mortgages and more. Call us today on 02921754150.

You can speak to us about all, or any one of the options available to first time buyers. These include:

  • Shared Ownership
  • New Buy Scheme
  • Gifted deposit
  • Builders gifted deposit
  • Straight purchase
  • Rent to buy

To find out more about these options, click here

Interested in the New Buy Scheme?

There is no doubt that this scheme is a positive addition to the alternatives available for first time buyers. You can buy a new build property from a participating developer with just a 5% deposit. Many of the major UK lenders support the scheme and accept newbuy mortgage applications, including Natwest, Santander, Barclays and Nationwide. The new buy scheme, unlike shared ownership and other similar schemes, are structured so the buyer owns 100% of the property, but only has to put in a minimum deposit, normally at least 5%. This gives the advantage of 100% ownership, but without needing to find a large deposit. As a whole of market mortgage broker, the team at Harvey Bowes will be delighted to advise and assist with any new buy enquiries, no matter how tentative they might be.

Are you purchasing from a Developer?

If you are looking to purchase a brand new home, there is a wide choice of ways to buy. It may all seem a little daunting at first, whether to go for shared-ownership, the new-buy scheme, a builder gifted deposit or outright purchase. At Harvey Bowes, we’re happy to talk you through the options and when you find the development you want, you’ll already have a very good idea about what type of deal suits you the best.

It is also important to note that the new buy process is different from a standard purchase. If you are buying a new home from a developer they will want to know that you can proceed with the purchase and expect to have all legal and funding aspects of the purchase tied up within no more than 28 days. If you need to exchange contracts within 28 days you will need to be totally comfortable that your mortgage broker can deliver speedy results and a professional service; and for that, you can rely on Harvey Bowes. To exchange contracts you’ll need a formal mortgage offer in place, however, if you buying a property that it not yet built, the mortgage offer may have to be extended as they all have an expiry date. We can make sure that a current and valid mortgage offer is on the table throughout the transaction, ready for completion – the day you move in.

Lenders often have specific mortgage deals for purchasing a new home. They may also have restrictions, particularly if you are dealing with a smaller new home developer. You can rely on the understanding we have about new build to give you the right advice – and to deliver.

Don’t rush for a credit check

Too many Estate Agents and Developers want to rush you in front of a mortgage broker and obtain a ‘decision in principle’ or ‘acceptance in principle’ before showing you the properties available. If you take nothing else away from reading the information on this website, please take this one piece of valuable advice: Don’t let a mortgage broker rush you into a ‘DIP’ or ‘AIP’ until you are ready to do so. They’ll tell you it is so that you ‘will know you’ll get a mortgage’ – but the harsh reality is that they do it as a ‘sales close’ where they try to corner you into using their service. There is no need for a professional mortgage advisor to push you into getting a credit check until you are looking to put forward an offer on a property. And the simple fact is that the more credit checks you have done, you risk lowering your score and making it harder to get a mortgage when you actually need it.

A professional mortgage broker will spend time getting to know your circumstances as well as explaining the process to you. And as a result, a professional first time buyer mortgage broker will be able to let you know whether you can obtain a mortgage without rushing to run a credit check. You can also discuss what it is likely to cost and how much a lender is going to lend and assess whether you can afford the repayments.

For other tips on your credit score and how to protect it, please see articles in our blog. For more straight talking professional advice, talk to us today on 02921754150.

How much can you borrow?

Lenders assess the amount you borrow on affordability.They take into consideration any other commitments you have, such as credit cards, store cards, hire purchase etc and this may reduce the amount you can borrow. As a rule of thumb, if you do not have other credit commitments, but do have a good credit score, you may be able to lend up to five times your income (joint income for two applicants).

Where at least one of the mortgage applicants is in a professional job, this may be extended. This applies to Teachers, Accountants, Solicitors etc where a career path can be clearly defined. The only way to really establish what you can afford to borrow is to talk to a mortgage adviser.

The Key Steps to buying a home

  1. Have an initial chat with one of our qualified mortgage advisors to establish your situation, affordability and criteria.
  2. We’ll give you straight talking advice on what type of mortgage is going to suit you best and if appropriate process an Agreement In Principle with the chosen lender
  3. Find a good solicitor – you’ll need to find someone to take care of the legal side of the purchase and it is good to have this in place, it shows the estate agent or developer that you are organised and ready to proceed. We have a panel of good solicitors that we liaise with daily and are happy to recommend one if required.
  4. It is then over to you to put your offer in on the property of your choice and negotiate the price.
  5. We will of already gathered much of the information we need in stage 1 or 2, but if the mortgage lender needs anything else, we’ll let you know at this stage and once received we’ll be in a position to place the full mortgage application with the recommended lender.
  6. Leave the rest to us at this stage, we’ll manage the process of the mortgage application and keep in touch with the solicitor who is arranging the legal aspects. We’ll keep you well informed and will be in regular contact so you know what is going on.
  7. Exchange of contracts – if purchasing a new build property this usually takes place within 28 days after you have reserved the property (sometimes longer depending on the Builder) – a 5%-10% deposit is usually payable at this time. If it’s a second-hand property you are buying exchange of contracts can be negotiated between you and the Seller.
  8. Completion – this is when you pay any remaining deposit, the Solicitor will have already requested the mortgage funds on your behalf from the Mortgage Lender to be sent on the day of completion, or a few days earlier. They then complete the transaction and by sending the total monies to the Seller and you get the keys!!
  9. Start paying the mortgage – you start making the monthly mortgage payments on completion.

The team at Harvey Bowes will be there from the very first enquiry to the handing over of the keys. And once you are a Harvey Bowes client we ensure that you are invited to review your mortgage before the mortgage deal expires, this means that we will be in touch to arrange the best option for the next phase of your mortgage. Our advice is therefore ongoing and not just for the initial mortgage set-up. For most home-owners, your home is the biggest investment you will make and it is therefore importsnt to choose to use a mortgage broker who is professional and is willing to be with you all the way.

Whether you are looking at a family gifted deposit, a rent to buy, a shared ownership, newbuy or outright purchase, talk to Harvey Bowes today. There are a wide range of first time buyer mortgages, talk to professional UK-based mortgage broker today, by calling 02921754150

Do you need a conveyancing quote? Click here

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Think carefully before securing other debts against your home.

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