Essex Mortgage Advice

Professional Mortgage Advisers in Essex

Phone Number: 07957578754

First Time Buyer Mortgage Advice
In Chelmsford and Essex

Mortgages are loans taken out for buying houses and sometimes land. These loans are usually taken out for a term of 25 years although the term can be shorter or longer than that.

Repayments are made every month paying back the capital plus interest until the whole amount is repaid at the end of the agreement. We have over thirty years of experience and have got hundreds of clients mortgages or rearranged their finances for them.

Please call us today at our registered office on 07957578754 to arrange a meeting, either in your own home or in the area of Essex. As independent mortgage advisers. We are authorised and regulated by the financial conduct authority.

view of terraced properties

Getting a First Time Buyer Mortgage

As your appointed representative, we will find the right mortgage for your circumstances.

We can also give you quality advice, support and provide information on any insurance policies you might require. We understand that buying your first property is one of the most life-changing purchases you are likely to make.

A term you often hear when searching for a mortgage is Loan To Value (LTV), which refers to how much of a deposit has been made by the mortgage holders. 

For instance, if a property costs £100,000 and you pay £10,000 as your deposit, the mortgage will be for £90,000. Therefore the right LTV figure will be 90% as you will have a mortgage that is the same amount as 90% of the value of your property. 

For home buyers, it would be ideal if they could pay a much larger deposit so that they could have a lower LTV rate because their repayment amounts would be lower. 

There is a wide range of different mortgages available, explicitly aimed at the first time buyer market. With such a variety to pick from, the search for a first time mortgage can be daunting.

Contact us for advice, and we simplify the process for you. We have access to all the latest mortgage deals on offer. Call 07957578754 today.

Mortgage Lender Rates

All mortgage lenders are aware of how difficult it is for first-time buyers to raise a deposit of 10% or more.

Many lenders offer mortgages with a higher LTV rate of 95%. It means you will have a 5% first time home buyer deposit to put down on your mortgage or they will offer cashback. Contact The Mortgage Clinic today to get help with finding your home.

Before you even start to view properties, it is a good idea to get a mortgage agreement in principle from a lender or two lenders.

It gives you a good idea of exactly how much you can borrow. It will prove to the estate agents you are serious about buying a property.

Some lenders will complete a hard credit check. A hard credit check will then appear on your credit file. You should consider this if you apply for an agreement in principle. It is beneficial not to request more than two agreements in principle.

Can I get A Mortgage?

Many lenders will conduct a soft search; this will not affect your credit score. It is worth checking with your prospective lenders before applying.

An offer should be eligible for between 30 days and 90 days. Of course, this is an estimate and not a guaranteed mortgage offer.

Having an idea of how much you can borrow will give you a good idea of the price range of properties you can view and importantly if you can afford the repayments.

The actual mortgage loan you decide to take out will depend on the cost of your property and if you want to use any of your loan for home improvements.

You should always make sure you'd be able to afford the monthly repayments on completion before deciding whether to make an offer.

You have to you keep up with your the repayments on your mortgage or your home may be repossessed.

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Are you looking for mortgage advice? For mortgage advisers in Essex, contact our expert team today. Please call 07957578754 or complete our contact form with an enquiry.

Are you looking for first time buyer mortgage advice in Essex? We offer mortgage advisor services throughout Essex, London and the surrounding areas including:

  • Southend-on-Sea
  • Colchester
  • Chelmsford
  • Basildon
  • Rayleigh
  • South Benfleet
  • Thundersley
  • Harlow
  • Rochford
  • Grays
  • Brentwood
  • Clacton-on-Sea
  • Braintree
  • Thurrock
  • Castle Point
  • Billericay

Which mortgage is best for first-time buyers?

To buy your first home, you could either get a variable mortgage or a fixed-rate mortgage. Your decision will depend on how much financial security you require.

First-time buyer mortgage rates are affected by which type of mortgage you choose.

The most suitable first-time buyer mortgages are the ones that have no fees and the lowest interest rates.

When you are buying your first home, there are some decisions you need to make before you look at the best first-time buyer mortgages and apply for one. These include:

  • Whether you would like a variable or fixed-rate mortgage
  • How much you would like to borrow
  • What length of term you want to pay off the entire balance (the mortgage's term)

To find out what the best first-time buyer mortgages are you can speak to our professional mortgage advisers. Whatever your choice of mortgage, we will give you all the help, advice and information you require.

What are Fixed-rate mortgages?

A fixed-rate mortgage is the type of mortgage where your interest rate is guaranteed to stay the same for a fixed period.

It lets you have peace of mind because, unlike a variable-rate mortgage, you will know the exact figure you will need to repay each month during this fixed period.

There are more fixed-rate mortgages available than any other type of deal. You can have a fixed-rate agreement that can last between one and 15 years, although 15-year sales are not standard. You can currently fix your rate for either one, two, three, five, seven, 10 or 15 years.

The prospect of locking into a relatively low price for as long as five years can be attractive, but you'll need to think about whether you want to commit to a deal for that long.

You might want to pay off your mortgage while you are in a fixed-rate period it can be expensive as you will have to an early repayment charge. If you are likely to move house within the fixed-rate term, you might want to decide on a different type of mortgage.

What are Variable-rate mortgages?

Variable-rate mortgages are mortgages allow fluctuation on the level of interest you will pay per month.

It means some months you might pay more than you expect, and some months you end up paying less. These mortgages generally come in two types: standard variable and tracker.

Tracker mortgages are fixed at a set percentage above the Bank of England's base rate of interest. It means that the amount that you pay on your repayments will generally move in time with the UK's standard interest rate.

A lender is likely to charge a percentage or two higher than the base rate set by the Bank of England. Some mortgages are known as discount tracker mortgages; they will offer you a discount off their standard tracker rate for a set period.

Conventional variable-rate mortgages are mortgages that might also change over time. They are different from trackers due to not being fixed to the base rate of interest set by the Bank of England.

With standard variable-rate mortgages, the amount that interest rates fluctuate month to month is entirely decided by your lenders. It means that on a standard variable rate mortgage, you could pay either more or less than on another type of mortgage.

There is no way of knowing for sure, and for this reason, they are considered a bit of a gamble. However, if it pays off, you could end up saving a lot of money, but if it doesn't, you might pay more than you expected.

What is an Interest-only mortgage?

With an interest-only mortgage, your monthly payment will only pay the interest charges on your loan. It does not pay back any of the original capital you borrowed. It means your payments will be lower than on a repayment mortgage.

At the end of the term, you will still owe the original amount you borrowed from the lender. Before you borrow money on an interest-only basis, your lender will want to see that you have an approved repayment plan in place for your protection.

These acceptable repayment plans vary from lender to lender but can include ISAs and stock market investments. Your lender is likely to make regular checks of your documents that your chosen personal repayment plan is on track to pay the required amount.

Previously, lenders would allow borrowers to rely on the possibility of a future windfall such as an inheritance or bonus, but very few will accept these now.

Can first time buyers still get a mortgage?

Before you make an application for a mortgage, you will need to save up for a first-time buyer deposit.

How much you can save up will impact the sort of mortgage suitable for you and your first home. One of the difficult parts of getting your first mortgage is the saving up for a deposit, more so if you want to buy a house in an expensive part of the country.

The more you save for your first-time buyer mortgage deposit, you will get better deals. That is because the more money you can put in, the less of a risk it is for the lender.

Therefore they will offer you their best mortgage deals for first-time buyers. By reducing your outgoings, you will be able to save more money for your deposit.

When a lender looks at your finances and bank statements, they will see that you are careful with the amount you spend. They will look on you favourably for your first time home buyer offer.

What is the average mortgage for a first-time buyer?

Research shows that the average monthly repayment for a first-time buyer is £674.00, it will depend on how much you borrow, the interest rate charged and the duration of the loan, the length of the loan term and the interest rate charged.

The more money you borrow, then the more you will need to repay, your actual monthly payments will be lower if you have a longer mortgage term.

Bear in mind, however, that having a mortgage for more extended means paying interest on the debt for longer, so while the monthly repayments might be more manageable, the total amount you repay is likely to be higher. Mortgages come in different terms.

They range from five years to forty years for you to keep up repayments. It is common to see mortgages that last for 25 years.

The popular mortgage term for first-time buyers is usually between 21 and 30 years.

For single applicants, they will often lend you four times your annual income. For joint applicants, it's generally three times the joint salary or four times the first salary plus the second income.

How much deposit do you need for a first-time buyer mortgage?

The minimum deposit lenders will generally accept 5% of the property value. These are known as 95% mortgages if you want one of these your options may be limited. The majority of lenders prefer to ask for at least 10% of the property value as a deposit.

Our mortgage brokers are based in Essex. They will work with you and discuss and recommend which deals are best for the deposit you have and guide you in the right direction. Call today on 07957578754 to arrange a meeting.