These mortgage deals are available with variable, fixed, capped or tracker rates, with both interest or capital plus interest repayment methods over many
different terms, plus 100% first time buyer mortgages, please speak to the adviser of your chosen mortgage company for more information.
As well as those in regular employment with a good credit history, some lenders will also accept those with non standard employment eg contractors or those with multiple jobs or those whose income consists largely of bonuses or commission etc.
First time buyer mortgages - Most lenders define a first time buyer as someone who has never owned a property before. Some lenders, however, class someone who has not been on the property ladder for at least three years as a first time buyer. There are also some lenders that will class a couple buying together as first time buyers, if one of them has not owned before even if the other has.
Until relatively recently there were no first time buyer mortgages - mortgage products aimed specifically at the first time buyer. Instead lenders gave rate discounts and other incentives on their main products. The reason that they do this is that they hope that you will stay with them for many years and that you will get bigger and bigger mortgages with them as you go through life. Also be aware that these low priced deals often have redemption penalties if you change lender or product before a certain date.
For a first time buyer, the mortgage amount that you can borrow is generally worked on multiples of salary. Some lenders will offer up to five times' salary and 100% of the property's value. However, the Financial Services Authority recommends that single people should borrow up to a total of three times' salary and for couples, two and a half times the joint salary.
If you need to borrow more than 75% of the value of your home, depending on the mortgage lender, you may be required to pay a Mortgage Indemnity Guarantee Premium. This is a lump sum payment that insures the lender against the risk that you will not be able to make your repayments on your mortgage. This can be a significant sum - around £1500 to £2000 (although it can be added to the loan). Donít forget too, that if the place you want to buy costs more than £120,000 then you will also need to pay stamp duty which starts at 1% of the purchase price and increases when the purchase price reaches £250,000.
When getting a first time buyer mortgage and buying your first home, if it is an older style property then consider getting a more comprehensive survey than the lenderís basic one. Although more expensive, this may pick up problems which you may not have been aware of.
Please click here to read about the house buying process.
Please click here to read about mortgages and the different mortgage types available.
Please click here to read about self certification mortgages if you have a bad credit history or non standard employment.