Author
Introduction
As a company we receive phone calls every day from people asking 'how much will it cost if I borrow 'x' amount as a first time buyer'...obviously we would like to help these people but we are an advice firm which means we have to take into account all the personal details of this client before we can make a recommendation to them, this takes time, so unfortunately we can't provide a quick response to this simple question and to some it would look like we are being evasive, on the contrary
Why can't we answer a simple question?
Well, there are too many variables involved such as those below
Key reasons:
- Purchase price and amount of deposit
- Where has the deposit come from
- Address, employment and credit history
- Current level of debts and income
Why does all that matter?
Our service is provided on an advised basis that means in simple terms we are going to research the entire mortgage market to find you the best lender and product from that lender for your circumstances, there's simply no point is us quoting 'estimates' for rates and costs that clients end up not being eligible for, it wastes their time and leaves them feeling let down or promised something they couldn't get
Example for this type of situation.....
I just carried out a quick source of available mortgage products for a First Time buyer looking to buy a property valued at £220,000, they had a 10% deposit and wanted a 5yr fixed rate over a standard 25 year term, the results were as follows:
345 mortgage products from 58 lenders,
rates from 4.44% to 8.64%.........................how can we in tell you what your mortgage is going to cost you definitely without knowing your full history?
Once I factor in the usual first time buyer incentives offered by lenders such as cashback, free lender valuation and no fees, we reduce that number to 34 from 15 lenders and rates form 4.64% to 6.24%
Now I can't recommend any of these as I don't know enough about my client to do so, information is KEY.
Looking for tailored mortgage advice? Call our specialist adviser Lee Martin now on 07809 747536 to discuss your options!
Final thought:
IF you are a first time buyer at the start of this process, find yourself a reputable mortgage adviser, go through their process for gathering your personal information and you will be better armed for the property hunt going forward, give yourself plenty of time, don't make offers on property until you have gone through this process, it is counter productive.
