Buying your first home can be a daunting time, but don't make it more stressful than it needs to be
Stricter lending criteria and the misunderstanding surrounding payment structures means securing a mortgage in your situation can often feel impossible.
At CMME, we believe taking your first step on the property ladder should be an exciting and joyous time, which is why one of our experienced mortgage consultants will provide you with straightforward, clear advice that will help you understand the entire home buying process, to ensure you understand everything before moving forward.
How much can you afford to borrow?
For the majority, buying a house will be the largest financial commitment you will ever make. Deposits can range from as little as 5% but it is worth noting the more you can put down, the lower your interest rate is expected to be. Once you have saved your required deposit you can use our calculators to see how much lenders will be willing to lend, and an indication of how much your monthly repayments will be. It is important to assess these calculations and decide whether borrowing this amount is realistic and if you will be able to make your repayments comfortably.
Learn more: Deposits
Finding a lender
Our mortgage consultants approach lenders upfront to ensure you a placed in a position where you can be certain your application will be assessed using a multiple of your daily rate alone. They will ensure lenders understand that your income is probable to be sustained because you have a desired set of skills giving you the ability to secure future contracts. You will then be presented with an ‘agreement in principle’, which is a strong indication on whether your application is likely to be accepted. When you are ready to proceed with your application, we are happy to do this for you.
Learn more: Mortgage Rates
Your first time buyer questions answered:
Q. Is there anything I can do to help my application succeed?
Before starting the process of purchasing a home, you will need to understand if you can feasibly afford the costs involved and work out your monthly expenses. Get to know your credit report, this will increase your chances of success when applying for a mortgage. Also make sure that you have the following documents to hand to support your application:
- A signed copy of your current contract
- 3 months personal bank statements
- 3 months business bank statements or umbrella payslips
- 2 utility bills from the last 3 months
- 2 forms of photo ID e.g. a passport and drivers licence
- Proof of your deposit
Q. I have had a few breaks in my contracts over the years, will I be able to secure a mortgage?
Our recommendation is to not have too many breaks between contracts just before applying for your mortgage. Most lenders are happy for you to have up to four consecutive weeks off but any more than this may ring alarm bells with the underwriters. Ask your mortgage adviser if you are concerned about gaps in your contract history.
Q. How will I afford my mortgage repayments if interest rates increase over the next few years?
We want to ensure that our clients can afford their mortgage whatever the future holds so we check your mortgage affordability against interest rates of 7% to ensure that you could afford your mortgage if interest rates rocketed. If you are concerned about the impact that increasing rates may have on your expenses then you can opt for one of the many competitive fixed rate mortgages that are available at present. Speak to your adviser to explore the options. It is a good idea to have a rough idea of the deposit you can raise and repayments that you are able to make before you start the application process, use our repayment calculator to find out how much your monthly costs are likely to be.
Q. Are there any options for me if I cannot raise a 10% minimum deposit?
The Governments Help to Buy scheme is a fantastic option for first time buyers struggling to save a large deposit. This scheme requires just a 5% deposit, making it extremely appealing to first time buyers. Check out our Help to Buy page (link) for further details.
Q. I am concerned about my credit rating, will it affect my application?
There are various things you can do to improve your credit rating before you embark on a mortgage application, closing down credit cards that have no balance, paying down outstanding balances or opening a credit card if you don’t currently have any credit history can all make a difference. Even small things such as joining the electoral roll at your current address or ensuring your address history is up to date can help to make your application a success. Your adviser will able to make suggestions as to how you can improve your credit profile in order for your application to be favourably presented to lenders but you can also help yourself by signing up to a credit referencing service such as Experian so you can monitor changes to your credit profile.
Q. When do I need to get a solicitor involved?
Having your agreement in principal and solicitors in place before you view a property will definitely help to set you apart from the crowd as estate agents receive far more speculative offers than they do qualified offers. Your adviser will be able to point you in the direction of a reputable solicitor with a proven track record of delivering for our clients. Your solicitor will liaise with the lender and the vendor’s solicitor to conduct the necessary searches and surveys and ensure that the legal aspects of the sale are completed. When it is time to exchange contracts, your solicitor will hold your deposit money until your agreed completion date so choosing a firm you are happy with is essential.
YWhy choose CMME?
CMME has helped many first-time buyer contractors obtain competitive mortgage funding, and are extremely familiar with the difficulties they can experience. Our service is offered over the phone, leaving you more time to yourself. As a result, the whole process is short and sweet, meaning you will be in your first home much sooner.