First Time Buyer

Buying your first home is one of the most exciting things that you will ever do. But there are things to consider.

Call us on 0161 6606458 or fill out our contact form

First Time Buyer in Cheshire

Buying your first home will be one of the biggest financial commitments you have made so far in your life but also the most exciting! You may have spent the past few years saving your deposit to help you get on the ladder. If so, the next step would be to find out what you can borrow so you’ll have a better idea of the value of property you can purchase and more importantly that this will be affordable.

Quick and Easy

Our simple process will save you time, and more importantly money

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One

Pick up the phone and talk to one of our experts so they know precisely what you need

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Two

We’ll provide the best advice when it comes to the many products that are available, so it’s right for you

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Three

We’ll be with you at every stage of application from day one until you complete

Important Things to Consider

 

  • How much can you borrow?
  • How much deposit do you have/need?
  • What is affordable to your budget?
  • What Government incentives are available?
  • What other costs will you incur? E.g. Moving costs, legal fees, stamp duty.
  • The difference between Freehold and Leasehold?
  • The Home Buying Process.

How much can you borrow?

We will help you establish an amount of mortgage you can afford taking into account things like; how much you earn, and any outgoings you may have. The amount you can borrow can vary from lender to lender, our brokers have access to the ‘whole of the market’ so we can cover a lot of lenders during our fact finding and advice process. We will complete a mortgage calculator with you to determine your affordability. Getting a ‘mortgage in principle’ can be a good way of finding out if you qualify and how much you can lend without going through a full application.

How much Deposit do you have/need?

Most first time buyers that come to us will have either saved some of their deposit or received a ‘gifted deposit’ from family. Generally, you will need to have at least 5% to 20% of the cost of the home you would like to buy.

For example;

Purchasing a home for £200,000, your deposit would need to be at least £10,000 (5%).

Saving more than 5% will give you access to a wider range of mortgages on the market. If you are considering any of the New Build Schemes there may be Government Incentives available. For any further information please ask.

What is affordable for your budget?

It is important to consider when making this financial step whether or not this will be affordable. We would recommend you work out a budget for you, before looking for a property. There are now strict checks in place when you apply for a mortgage. Lenders will check you can afford the mortgage and will also ‘stress test’ your payments, if interest rates were to rise or your circumstances changed e.g. Retirement or starting a family. As part of the application process the lenders will need to see details of income and outgoings you have.

Important Things to Consider

 

  • How much can you borrow?
  • How much deposit do you have/need?
  • What is affordable to your budget?
  • What Government incentives are available?
  • What other costs will you incur? E.g. Moving costs, legal fees, stamp duty.
  • The difference between Freehold and Leasehold?
  • The Home Buying Process.

What other costs will you incur?

Some of the upfront costs include: Deposit, Stamp Duty, Valuation Fees, Surveyors Fees, Legal Fees, Mortgage Arrangement Fees, Initial Furnishing Costs, Home Removal Fees and Buildings Insurance.

Other financial commitments to consider: Maintenance and Repairs, Council Tax, Insurance, Household Bills, Ground Rent, Service Charge, Leasehold Fees.

The difference between Freehold and Leasehold?

What is a Freehold?

The freeholder of a property owns it outright, including the land it’s built on. If you buy a freehold, you’re responsible for maintaining your property and land, so you’ll need to budget for these costs. Most houses are freehold but some might be leasehold – usually through shared-ownership schemes.

What Is Leasehold?

With a leasehold, you own the property (subject to the terms of the leasehold) for the length of your lease agreement with the freeholder.

When the lease ends, ownership returns to the freeholder, unless you can extend the lease.

Most flats and maisonettes are owned leasehold, so while you own your property in the building, you have no stake in the building it is in.

Some houses are sold as leaseholds. If this is the case, you own the property, but not the land it sits on. It is most common you will have ground rent/service charges to pay, any fees in relation to leasehold will need to be considered.

The Home Buying Process.

The process in a nutshell is as follows;

Our experienced brokers can advise you of all aspects of the above. Please contact us using our contact form or call on 01928 238 289 for more information.

We’d love to hear from you

Buying a property is a really big step, but it doesn’t have to be stressful. We’ll be with you at every step.

Where to Find us

If you prefer to meet us in person, feel free to pop in for a chat. They’ll be a lovely brew waiting for you.

 

31-33 High Street, Frodsham, WA6 7AJ

 

mortgageadvice@alderrose.co.uk

 

0161 6606458

 

Mon – Sat: 9am to 5pm

Alder Rose Mortgage Services LTD is an appointed representative of Legal Webb UK LTD which is authorised and regulated by the Financial Conduct Authority no, 734694. FCA does not regulated some forms of Buy To Let Mortgages. This sites is intended for UK customers only. Company Registrations no, England and Wales 11443964.