People entering the market are often apprehensive about how their journeys as first-time buyers would take shape. However, if you are careful enough and seek the right professional help, you can navigate your first-time property buying experience without facing hassles. 

If you are ready to purchase your first property with a mortgage, you should apply for a first-time buyer mortgage. Here is a brief first-time mortgage guide to help you out in your journey.

What is a first-time buyer mortgage?

As the name suggests, a first-time buyer mortgage is a mortgage for people buying a property for the first time. It is provided to borrowers who do not own any other residential property anywhere. If you own any residential property anywhere within or outside the limits of the UK, you will not be eligible for a first-time buyer mortgage.

Finding the right deal and mortgage lender can get challenging for first-time buyers. It is, therefore, advisable to work with a skilled and experienced local mortgage broker as you enter the market. Mortgage brokers scan the entire market and get the best deals based on your needs, preferences, and circumstances. They guide you every step while getting your first-time buyer mortgage and help you make the right decisions. 

How to get a first-time buyer mortgage?

The process becomes easier and more systematic if you are aware of all the stages involved in getting a first-time buyer mortgage. Seek help from your mortgage advisor as you navigate through the different stages. 

Here are the key steps involved in getting yourself a first-time buyer mortgage and purchasing the property:

Deciding the amount you need to borrow

Before anything else, it is important to determine the amount you could borrow via a first-time buyer mortgage. This will give you a clear sense of direction and a range you can target while searching for the right property to purchase. Talk to your mortgage brokers to determine the maximum amount you can borrow based on your circumstances and financial standing. 

Obtaining Decision in Principle (DIP)

Once you have decided on the amount you are willing to borrow, you can go ahead with obtaining a decision in principle (DIP). DIP is a statement issued by banks and building societies stating the estimated amount you are eligible to borrow for buying a property. Although this is not a legal document with precise details, estate agents and property owners often demand a DIP as you make a purchase offer. 

Looking for the right property

Once you have a DIP, you can go on a property hunt. Make sure you don’t settle for the first good offer and look for properties that fall within the range of the mortgage you are likely to receive. Once you find an ideal property that can be your first purchase, you can make an offer to buy the same. 

Finding the right mortgage deal

Once your offer is approved, you can inform your mortgage broker about the same. This would prompt them to get you the best deals in the market based on your circumstances and budget. Of course, it is always preferable to work with fee-free mortgage brokers who help you handle the paperwork. 

Finding a solicitor

After your mortgage broker gets you the right deal, you will need to find the right solicitor for the same. A solicitor (or conveyancer) would help you with all the legal processes to be carried out as you purchase your first property.

Moreover, it is important to understand the small difference between a solicitor and a conveyancer. While a solicitor is qualified for handling property purchases and all complicated legal matters, a conveyancer specializes in providing services related to the purchase of a property. Therefore, they wouldn’t help you with complicated legal matters.

Making a mortgage application

Now, you can apply for the chosen mortgage deal with a dedicated mortgage lender. The mortgage lender will collect multiple documents, make several assessments, and confirm that you can afford to make regular mortgage repayments. They would also carry out a full credit check before approving your application. 

Getting a mortgage survey done

Once your application is reviewed and your affordability assessed, the lender will conduct a valuation of the concerned property to confirm that its market value is in sync with the amount you are willing to borrow as a mortgage.

Receiving an offer

Once all the assessments are made, the mortgage lender will work out an offer and send the same to you, your mortgage broker, and your solicitor. You will have 3 to 6 months to respond to the offer and finalize the deal. 

Accepting the offer and exchanging contracts

Finally, if you got the offer to be in sync with your requirements, you can accept the same; once the legal work is done, transfer the deposit and exchange contracts with the help of your solicitor.

Once you get a final date for moving into your first property, you can start making shifting arrangements and assume ownership of your dream property!