First-Time Buyer Mortgage Guide

Welcome from Andrew Timmins, Your Dedicated Mortgage Broker

Hello, I'm Andrew Timmins, an experienced mortgage broker specialising in helping first-time buyers like you navigate the exciting journey of purchasing your first home. This guide will walk you through the key aspects of obtaining a mortgage, and I'm here to provide personalised advice every step of the way.

1. Understanding Mortgages

Navigating the world of mortgages can be daunting for first-time buyers. As your expert broker, I'm here to guide you through the process and help you understand:

Types of Mortgages

• Fixed-rate mortgages: Your interest rate stays the same for a set period, typically 2-5 years.
  • Pros: Predictable monthly payments, protection from interest rate rises
  • Cons: May pay more if interest rates fall, early repayment charges
• Variable-rate mortgages: The interest rate can change.
  • Standard Variable Rate (SVR): Set by the lender, can change at any time
  • Tracker mortgages: Follow a specific economic indicator, usually the Bank of England base rate
  • Pros: May benefit from interest rate drops, often no early repayment charges
  • Cons: Monthly payments can increase, making budgeting difficult

I can help you determine which type of mortgage best suits your circumstances. Contact me for personalised advice

Key Mortgage Terms

• Loan-to-Value (LTV): The percentage of the property's value you're borrowing
• Annual Percentage Rate (APR): The total cost of the mortgage, including interest and fees
• Repayment vs Interest-only: With repayment mortgages, you pay off the interest and capital; with interest-only, you only pay the interest

Don't worry if these terms seem confusing - I'm here to explain everything in plain English. Get in touch for clarity on any mortgage-related terms.

2. Affordability

Understanding how lenders assess affordability is crucial:

• Income assessment: Usually 3-4.5 times your annual income
• Credit score: A good credit score improves your chances of approval and better rates
• Outgoings: Lenders will look at your regular expenses and debts
• Stress testing: Lenders check if you could still afford payments if interest rates rise

I can provide tips to improve your affordability and help you present your finances in the best light to lenders. Contact me for a free affordability assessment.

3. Mortgage Deposits

The deposit is a crucial part of your mortgage application:

• Minimum requirements: Typically 5-10% of the property value
• Impact on rates: Larger deposits often secure better interest rates
• 95% mortgages: Some lenders offer 95% LTV mortgages, but these often have higher interest rates
• Sometimes there are options with a smaller deposit.  Please get in touch to see what else is currently available.
  

I can advise on the best deposit strategy for your situation and help you access competitive rates. Reach out to me to discuss your deposit options.

4. Government Schemes

The UK government offers several schemes to help first-time buyers:

• Right to Buy: Buy your council property at a discounted price
• Shared Ownership: Buy a share of a property (25-75%) and pay rent on the rest
• First Homes scheme: Discounted new-build homes for first-time buyers

I'm well-versed in these schemes and can help you determine if you're eligible and which might be best for you. Get expert advice on government schemes.

5. Mortgage in Principle

A Mortgage in Principle (MIP), also known as an Agreement in Principle (AIP) or Decision in Principle (DIP), is a statement from a lender saying they'll lend a certain amount before you've found a property.

• Helps you understand what you can afford
• Shows estate agents and sellers you're a serious buyer
• Usually valid for 30-90 days
• Doesn't guarantee a mortgage offer

I can help you obtain a Mortgage in Principle, giving you a clear idea of your budget. Contact me to get started with your MIP.

6. Costs Beyond the Deposit

Be prepared for additional costs when buying a home:

• Stamp Duty: Rules change and can be different for first time buyers.  Contact me for the current rules
• Legal fees: Typically £850-£1,500 for conveyancing
• Surveyor's fees: £250-£600 for a basic survey, more for a full structural survey.  Some mortgages come with a free basic valuation
• Mortgage fees: Arrangement fees (can be added to the mortgage), booking fees, valuation fees
• Insurance: Buildings insurance is usually mandatory, consider contents insurance too
• Moving costs: Don't forget to budget for removals or van hire

I can provide a detailed breakdown of all costs involved in your specific purchase. Get in touch for a comprehensive cost analysis.

7. Application Process

7. Application Process

1. Save for a deposit: Aim for at least 5-10% of the property value
2. Check your credit score: Address any issues before applying
3. Get a Mortgage in Principle: This gives you a clear budget
4. House hunting: Find a property within your budget
5. Make an offer: Once accepted, inform me as your mortgage broker
6. Full mortgage application: I'll help you submit all required documents
7. Property valuation: I'll arrange this through the lender
8. Mortgage offer: Typically valid for 3-6 months
9. Exchange contracts: Pay the deposit to your solicitor
10. Completion: The remaining funds are transferred, and you get the keys!

As your dedicated broker, I'll guide you through every step of this process, from initial enquiry to getting the keys to your new home. I'll help you find the best deals, support your application, and be there to answer any questions along the way.
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Ready to start your home-buying journey? Contact me today for expert, personalised mortgage advice tailored to your unique situation.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.  YOUR HOME MAY BE REPOSSESED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Call Andrew Timmins on 07904 113208 to discuss your requirements or send an enquiry by email

​ YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE ​

Below is a list of areas covered:
​Mortgage Broker Birmingham
Mortgage Broker Wolverhampton
Mortgage Broker Sedgley
Mortgage Broker Dudley
Mortgage Broker Walsall
Mortgage Broker Bilston
Mortgage Broker Tipton
Mortgage Broker Sandwell
Mortgage Broker Brierley Hill
Mortgage Broker West Bromwich

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​Andrew Timmins is a registered individual of Premier Financial & Estate Planning which is authorised and regulated by the Financial Conduct Authority FCA 566936