Budget boost for first time buyer mortgages

Friday, 12th March, 2021

The Chancellor, Rishi Sunak, handed the UK some positive news last week (particularly those in the market for first time buyer mortgages) after announcing that ‘generation rent’ is to be replaced by ‘generation buy’.

The claim follows the government’s decision to extend the stamp duty holiday to 30 June from what was scheduled to conclude at the end of this month. It will then be tapered from 1 July until the 30 September.

What does this mean? Well, it means that the current tax break on the first £500,000 will remain in place until 30 June. It will then be halved to £250,000 from 1 July to 30 September. Then, from 1 October, the full stamp duty measures will be put back in place.

This is, of course, good news for those who were planning on applying for a mortgage before the stamp duty holiday ends. It’s also good news for those who are currently in the process of buying a property, but who may just have completed after 31 March, which would have perhaps incurred charges that the buyer was aiming to avoid.

And, of course, the Chancellor’s decision is also likely to be welcomed by anyone looking to get a mortgage today, as it means that there is now an extra amount of time available to cover the mortgage application process and any chain-related issues that often impact the sale and purchase of a property.

So, if any of the above descriptions accurately describe you – or if the outcome of the Budget has acted as a tipping point and given you the certainty you needed to make your first – or next – move, then the next bit is simple.

If you are looking to apply for a first-time buyer mortgage, or if you simply want to take advantage of the stamp duty holiday before it ends, then contact the Complete Mortgages team on 01483 238280 or email info@complete-mortgages.co.uk.

Remember, whilst we are first time buyer mortgage specialists, we are also buy to let mortgage specialists, equity release mortgage specialists and commercial mortgage specialists, too.

Getting a first time buyer mortgage post-Coronavirus

Monday, 8th June, 2020
Getting a first time buyer mortgage

Imagine you’ve saved hard – for many years – and have finally reached the point whereby you have enough money for a deposit on a property you like. And then Coronavirus hits and throws everything up in the air.

Well, that’s what happened to many people who were ready to apply for a first-time buyer mortgage in March and who, for the last couple of months, have probably felt a little deflated with getting so close, only to be have their dreams of homeownership put on hold.

The good news is that the restrictions are easing – to a degree, at least. And whilst we don’t know what lies around the corner, Complete Mortgages, as a Guildford mortgage broker, is advising forthcoming homeowners to start thinking about taking their first steps towards getting a foot on the property ladder in readiness for life after (or maybe life with) Coronavirus.

To help you with your thinking before you spend time applying for a first-time buyer mortgage, here are a few things to consider.

Can I afford a first-time buyer mortgage?

These days, an online mortgage calculator – such as Complete Mortgages’ own version here – is a good starting point. It will quickly and simply tell you what you can borrow based on what you earn and what you spend.

With regards to a first-time buyer deposit, if you’re looking at a property that costs £200,000 then you’ll need to have saved at least £10,000 – or 5% – of the total value. Just remember that by having a higher deposit in relation to the total cost of the property, you’ll be able to access a wider range of mortgages.

How do lenders make decisions about how much they’re going to lend me?

No two lenders are the same and each one has its own specific lending criteria. However, there are some general points to think about. These include:

  • Income. Are you PAYE or self-employed, and does your overall income depend on bonuses? Income is key, so make sure you can clearly show all sources.
  • Expenditure. Do you have many financial commitments? If there’s more going out than coming in then you’ll want to address that before applying for a mortgage.
  • Credit rating. The difference between good and bad credit can be the difference between getting and not getting a mortgage. If you’re concerned about your credit rating, then read our article on getting a mortgage with bad credit.

There is a lot to consider before applying for a mortgage – but we can help you with the process. Regardless, now is the time to start thinking beyond COVID-19 and taking the necessary steps towards homeownership.

To access Complete Mortgages’ comprehensive first time buyer guide, which tells you all you need to know when it comes to buying your first home, click here. Or, to speak with a first-time buyer mortgage expert, call 01483 238280 or email info@complete-mortgages.co.uk.

By Mark Finnegan at Complete Mortgages