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First Time Buyer Mortgage Northampton

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View our user-friendly fact sheets to help you make your own decisions about your mortgage today

My Mortgage Experts understand that as a first time buyer you may find buying your first home quite daunting. Our quick and easy to use mortgage eligibility checker will assist you to gain an instant indication as to whether we believe we can get you a mortgage (this is subject to credit score and financial assessment).

Book an Adviser’s Time

Click on “can I get a mortgage”, which will lead you through to our mortgage search, here you can review potential products available. Click select on a product which will take you through to the mortgage eligibility checker for you to gain your instant decision.

Help to Buy

Raising a sufficiently large deposit can be one of the hardest personal money challenges. Research in 2013 by Moneysupermarket.com indicates that the average age of a first time buyer in the UK has risen to 35. Many require the assistance of parents or other relatives in order to be able to purchase even at this age, making this a key family finance issue. In an effort to make it easier for young people to get on the ladder, the Government introduced its Help to Buy scheme in April 2013. The first stage applied to new-build properties only.

What is Help to Buy?

The Government’s Help to Buy scheme aims to provide help with mortgages to prospective borrowers for new build homes, and the area of first time buyer mortgages, providing they are valued at under £600,000. This first part of the scheme allows a prospective buyer with a deposit of only 5% of the property value to obtain a mortgage. Instead of the 95% mortgage, such a customer would have to try and find previously, they can now apply for a mortgage for 75% of the value, for which they are much more likely to be accepted, while the remaining 20% is provided in the shape of a loan from the Government.

No interest will be charged on the equity loan portion for the first five years. The loan will need to be repaid alongside the mortgage at the end of the term.

This scheme is available in England only. The Scottish Government, Welsh Government and Northern Ireland Housing Executive run similar schemes – check out their websites.

Borrowing

The amount a lender will lend you depends on your income & credit commitments. Historically lenders would use a simple multiple of your income however nowadays the majority use complex affordability models to determine the size of the loan. These models usually consider the following: your income and how guarenteed it is, how many children you have, your outgoings, such as loans and credit cards, your credit score and how many years you want to borrow the money for.

As a rough guide a typical multiple is four times your income, however if you want to borrow £100,000 with a £25,000 income but have 4 children you are less likely to be approved.

Residential Rates on purchases from 8 July 2020 to 31 March 2021

If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay SDLT on the amount that you pay for the property above £500,000. These rates apply whether you are buying your first home or have owned property before.

You can use the table to work out the SDLT due:

Property or lease premium or transfer value SDLT rate
Up to £500,000 Zero
The next £425,000 (the portion from £500,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

From 8 July 2020 to 31 March 2021 the special rules for first time buyers are replaced by the reduced rates set out above.

Use the SDLT calculator to work out how much tax you’ll pay.

After the 31 March 2021 Stamp Duty will revert to:

Property or lease premium or transfer value SDLT rate
Up to £125,000 Zero
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

Example; If you buy a house for £275,000, the SDLT you owe is calculated as follows:

0% on the first £125,000 = £0

2% on the next £125,000 = £2,500

5% on the final £25,000 = £1,250

Total SDLT = £3,750

 

You will also have to pay for the survey or valuation of the property, the cost of this is relative to the value of the property and can range from £0 to £1,000+. There is also legal work that needs to be done when purchasing a property. This is known as conveyancing and the cost of this is also relative to the value of the property. Your lender may also charge an arrangement/booking fee for your mortgage.

Contact us to find out how much these fees may be.


Can I get a Mortgage?
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.