Understanding Mortgages for First-Time-Buyers
Navigating the mortgage market can be daunting for first-time buyers. PBS Financial Solutions will help you make this first step with confidence and easy. With our experience and guidance, we will help you understand all the available options, so you can make an informed decision on the best mortgage for you.
Deposit Size
The larger your deposit, the better the mortgage rate you can secure. A higher deposit often means lower monthly payments and less overall interest. Most lenders require a minimum deposit of 5% of the property's value, at PBS we have exclusive mortgages available to First Time Buyers with lower deposits.
Credit Score
Your credit score plays a crucial role in determining your mortgage eligibility and the interest rates offered to you. Before applying for a mortgage, we check your credit report for any discrepancies and work on improving your credit score to help you get accepted.
Affordability
Lenders will assess your affordability based on your income, outgoings, and financial commitments. It's essential to ensure that your monthly mortgage payments are manageable. We will help you understand how much you can borrow and the different amounts each lender will offer.
Interest Rates
Different mortgages come with varying interest rates. Fixed-rate mortgages provide stability with consistent payments, while variable-rate mortgages can fluctuate, potentially offering lower rates but also the risk of higher payments. Our experience allows us to consider which option aligns best with your financial situation and risk tolerance.
Mortgage Term
The length of your mortgage term will impact your monthly payments and the total amount of interest you will pay. Our advice will mean you chooses a term that balances affordability with long-term financial planning.
Government Schemes
There are several government schemes designed to help first-time buyers, such as the Help to Buy, Shared Ownership, and Lifetime ISA. These schemes can provide financial assistance with your deposit or offer more affordable purchasing options. We consider whether any of these schemes might be beneficial for you.
Additional Costs
Beyond the deposit and monthly repayments, there are other costs to consider, including stamp duty (although first-time buyers may benefit from reduced rates), legal fees, survey costs, and moving expenses. Budgeting for these additional costs is crucial to avoid any surprises during the buying process.
