First Time Buyers: What You Need to Know

Buying your first property can be daunting, and you may feel like you don’t even know where to start! But don’t worry, we’re here to help and guide you throughout the whole process.

As mortgage brokers, we get asked a lot of questions from first time buyers, so we thought it would be really useful to put together a blog post where we can answer some of the most frequently asked questions that hopefully give you some clarity.

“How much money can I borrow?”

This is perhaps the most common question we get asked, and we understand why! All lenders have different criteria, but a good rule of thumb is to take your annual income and multiply it by 4.5. Some lenders might offer less than this, some more. It’s also important to think about what this means to you. Do you want to borrow that much, and do you want to have your monthly payments at that amount? At Nook Mortgages we go through all of this with you to find you a rate that you’re comfortable with.

“What do I need to have prepared to start the process?”

Before your appointment with us, we’ll send you over a handy checklist of the documemts you should have to hand. This includes things like your payslips, bank statements and a copy of your credit report. It’s also useful to think about the type of property you’re looking for, and in what area.

“How long do I need to be employed or self employed for?”

Good news for business owners – we have access to lenders who only require one year of accounts! We also have lenders that don’t necessarily need three months of payslips if you have started a new job – in some cases, lenders can agree to your mortgage with just a copy of your contract before you even start your new role.

“How much deposit do I need?”

This all depends on your current situation, and there are lots of variations that we can work with for your deposit amount. The minimum you can put down is typically 5% of the purchase price, but we always discuss all of the options with you.

“Should I use a bank or broker for my mortgage?”

We would always recommend using a mortgage broker because banks can only advise you on their handful of products and criteria. At Nook Mortgages we have access to the whole of market, meaning we can tailor the best option to you and your circumstances. We also are with you every step of the way, from the very start to your completion day.

“Do I need to pay Stamp Duty?”

Stamp Duty is a form of land tax which you pay when you buy a property, or land. There’s good news for first time buyers though, because you don’t have to pay anything when you purchase a property of up to £300,000.

“What credit score do I need to get a mortgage?”

Lenders don’t necessarily look at the score itself, but the context. I.e. your credit report. There are three main credit reporting companies: Transunion, Equifax, and Experian. Checking all three can be costly and time consuming, which is why we always recommend ‘Check My File’ which provides all information across all three credit agencies.

You can get a free trial with our link HERE

Are you thinking about getting on the property ladder? We’re here to help.