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Guide for first time buyers

How getting a mortgage works if you are a first-time buyer

If you are a first-time buyer, you may have spent the past few years saving for a deposit to help you get on the property ladder.

If so, the next step is to find out how much you can borrow so you will have a better idea of the type of property you can afford to buy when you start looking for your first home.

First-time buyer’s deposit

Your deposit is the amount of money you have saved up to put towards your first home and it will help determine how much you then need to borrow as a mortgage.

The more money you have saved as a deposit, the less you will need to borrow from the bank. and if you have a bigger deposit, you will have access to more competitive mortgage rates.

As well as saving for your initial deposit, you will also need funds to put towards fees like property searches, surveys, mortgage arrangement fees, solicitor’s fees, stamp duty, home insurance, removal costs and so on.

First-time buyer’s mortgage

When you apply for a mortgage, the lender will assess your affordability by looking at your annual salary and any other income you receive, as well as all your outgoings, including credit card and loan debts, household bills, childcare, travel, and general living costs.

The lender will also check your credit history to see whether you are a reliable borrower and will use this and its affordability assessment to decide how much you can borrow.

Mortgage providers will usually have a maximum loan-to-value – LTV – they are prepared to offer you. This is the maximum mortgage loan you can take out as a percentage of the property value.

So, if, for example, the property value was £200,000 and you were offered a mortgage of £170,000, your LTV would be 85% and you would need a deposit of £30,000, which is 15%.

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

For mortgages we normally charge a fee of £295. This is payable on offer of a mortgage. We can waive the Fee at our discretion. We will also be paid a Fee from the lender. The precise amount will depend on your circumstances.

The information given in this website does not contain all of the details you need to choose a mortgage. Make sure that you read the separate key facts illustration before you make a decision. The FCA does not regulate some forms of buy to let mortgages.

If you have a complaint or dispute with us, you are entitled to make a complaint. We have a complaints procedure that is available on request. If you wish to register a complaint, please contact us either in writing, by telephone or email. Please be assured we treat complaints seriously. For your protection if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (FOS).

AGM Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network a trading name of Personal Touch Financial Services Ltd. Personal Touch Financial Services Ltd is authorised and regulated by the Financial Conduct Authority. 

Registered address: 1 Marschal Court, Stirling, United Kingdom, FK7 7UY

Country of registration: Scotland & Registration number: SC573944

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