First Time Buyer Guide
First Time Buyer Guide
Buying a house is always exciting, but can often be a daunting task too!
In this guide, we talk you through each stage in simple terms that are easy to digest and understand, but if there’s anything
you’d like explaining in a little more detail, please don’t hesitate to get in touch with your dedicated mortgage adviser who
will also be on hand whenever you need them.
What is a mortgage?
If you don’t have enough money to buy a house outright with cash (which most people don’t), then you would take out a
mortgage.
The mortgage is the loan that you would use to buy the property with
You would agree to pay the money back each month, over a set period of time to suit both you and the lender
The lender would assess your current and future situation, so would look at your income, outgoings, deposit and credit
score to look at the overall amount that they would be able to lend
You would need to put a deposit down yourself too, often starting at 5% of the property purchase price
Using your deposit along with the lenders mortgage loan, you are able to buy your new home
Because the loan itself is secured on the property itself, your home may be repossessed if you fail to keep up your mort-
gage repayments
I am thinking of buying a house, what do I do first?
The first thing to do is contact us.
We will go through your affordability with you, so we would look at the same things the lender would look at. So that’s your
current situation, your income, outgoings, deposit and credit score to look at the overall amount that you would be able to
borrow. Or as we call it your ‘Borrowing power!’. Knowing your Borrowing power is important, so that you know you are
looking at the right price range.
If you are ready to go, we would move a step further and get you a ‘Decision in Principle’ (DIP)
This would be where the lender would credit score you to make sure that you are able to secure a mortgage based on the
figures we have talked through. (for