*Quotes are subject to credit score, HMRC (Inland Revenue) verifiable income and minimum 5% deposit.
If it wasn’t for Lak we would never have got the property. .
I have no hesitation recommending Lak Tamana and Associates.
When looking for a mortgage broker we initially went to another broker who confused and restricted our options. We then met Lak who simplified the process and gave us a more competitive deal in a timely manner to relieve pressure from agents and get the house of our dreams.
If you’re thinking about buying your first home, there’s a lot to consider.
Finding the right location and the right property are only part of the process; working out the financial side of things is equally, if not more, important.
Here is a rundown of some of the things you’ll need to think about when taking out your first mortgage...
Firstly, when considering your financing options and which property to buy, remember that mortgage lenders will generally only lend 90 to 95 per cent of the house purchase price.
You will have to pay the remainder as a deposit. If you’re able to put an even larger deposit down however, you may qualify forbetter mortgage deals.
See below for details of new government house buying schemes that may help first time homebuyers.
When working out what you can afford, it’s also vital that you take into account all of the expenditure you’re likely to have as part of buying a new home.
This is both in initial outlay and monthly outgoings - some of which may not be immediately obvious as a first time buyer.
As well as the property deposit, initial costs typically include the following:
It is essential to understand how these various costs will add up and, most importantly, whether you can realistically afford them.
The biggest cost of course, will be the deposit for the purchase of the property.
Lenders’ attitudes to mortgage risk, and deposit levels, have changed significantly over the last few years.
During the credit crunch and the ensuing financial crisis, however, most lenders restricted their maximum lending limit to 90 per cent of the property value.
This meant that buyers had to find a deposit of at least 10 per cent to put down – more if they wanted to secure a better mortgage deal.
It's now possible to get a 95% mortgage again but it remains true that the bigger the deposit you have available to put down, the better the mortgage deal you are likely to get.
Mortgage availability is also subject to your credit score and verification of your income.
It also pays to think about what sort of mortgage deal you want.
Whether you opt for a fixed rate, or a variable rate such as a tracker or discount product, depends greatly on your own situation and preferences.
Consider whether you are willing to accept some variation to your mortgage payments from month to month, or if you would you prefer the stability of a fixed monthly mortgage payment.
Remember to take potential variation in the Bank of England base rate into account. The rate was cut to just 0.25% in August 2016 but you can be sure that won’t always be the case.
In the 2013 Budget, the government announced the introduction of Help to Buy.
Help To Buy is designed to aid UK homebuyers, and in particular to help first time buyers get on the property ladder.
The scheme, is aimed at buyers with an available deposit of at least 5 per cent, purchasing a new build property valued up to £600,000.
The scheme allows the buyer to take a government equity loan of up to 20 per cent of the property value, effectively meaning you can take out a smaller mortgage (reducing your monthly outgoings) and potentially also allowing you to qualify for a better mortgage deal.
The equity loan is interest-free for five years, and can be repaid at any time, or when the property is sold.
While exciting, buying your first property can also be an intimidating and confusing time.
By dealing with an experienced mortgage professional like Lak Tamana & Associates, you can be sure of receiving professional mortgage advice.
They have vast experience sourcing all different types of mortgages and access to thousands of up-to-the-minute mortgage deals.
Get in touch now for a prompt, no-obligation mortgage quote.
Speak with Lak and get immediate access to 1000s of low mortgage rates for first time buyers. Including all the latest Help to Buy deals too.
Call now on 07973 748473 and get a prompt no-obligation quote.
Or simply fill out the request a call back form. and Lak or a colleague will call you back at your chosen time slot.
He looks forward to hearing from you soon and helping you purchase your first home in Leicester.
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