First Time Buyers

Buying your first property is an exciting prospect but it can be overwhelming knowing where to start.

 

Pilgrim Mortgages take pride in helping first-time buyers to get on the property ladder. Our job is to help you understand the process and to secure the most cost-effective mortgage for your situation.

We will guide you through the house buying process and explain property finance to you without using jargon and will be with you from initial enquiry until the day you own your first home!

As this is your first-ever property purchase it is important to us that you understand every aspect of the property buying process before you make your decision to proceed.

There is a lot to consider when buying a property including; the mortgage terminology, how much you can borrow, what it will cost to repay, the setup fees including stamp duty and survey fees, the types of survey and getting the right mortgage protection insurance.

These considerations and more are fully explained in our conversations with you from the outset and you are encouraged to ask questions.

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How We Can Help You Buy Your First Home

We will work tirelessly on your behalf to ensure that we secure the most cost-effective finance for your situation to enable you to purchase your first property.

We work with over 100 lenders and thousands of mortgage products. Using a mortgage broker will ensure that you get the best mortgage deal for your situation, but you will also have the backing of a well-regarded property finance company (that’s us) fighting your corner to ensure the loan is agreed and processed efficiently. 

We will handle the whole application process from application right through to completion (the day you get your keys!).

Talk to us about first-time buyer schemes such as Help to Buy mortgages and 95% loan to value mortgages.

We can secure benefits for you including cashback & a free property valuation.

We can recommend solicitors, surveyors, and other professionals that we trust and that will help you with your first home purchase.

We are flexible and can speak with you in the evening and on weekends if appointments are difficult during the workweek. We will adapt how we work to suit your needs and your busy lifestyle.

Mortgages for People with Small Deposits

As of March 2021, 95% loan-to-value (LTV) mortgages are once again available for the purchase of residential property in the UK and the goverment has backed several new schemes to encourage first time homeowners, including the Mortgage Guarantee Scheme and Deposit Unlock.

Buying a house now requires substantially less cash and these schemes will be attractive to first-time buyers who had previously only been able to borrow up to 85% of the property value.

Key points of the 95% LTV mortgage scheme:

  • 5% deposit

  • Maximum property value £600,000

  • Available to first-time buyers and home movers purchasing a property.

  • Income-based on affordability but likely to max at 4.5 x income.

 

The government 95% mortgage scheme

The government wish to turn generation rent into generation buy. They have guaranteed 95% loan-to-value lending. The guarantee is for lenders and gives them the backing they need to lend once again to first-time buyers and home movers who only have a 5% deposit. 

How much can you borrow on a 95% LTV mortgage?

One of the main issues for first-time buyers is

affordability. 95% mortgages are usually lent around 4.5 x income.

For employed, this is gross annual income minus any deductions and credit commitments.

For the self-employed, this is based on net profit, and for limited company directors, the most advantageous method is to use salary and share of net profit (as dividends are often lower than net profit).

The scheme is not going to help those who already have enough deposit to buy at 90% loan-to-value but cannot afford the mortgage, instead, it will unlock the ability to own a property for those with good incomes in comparison to property prices.

Joint Borrower Sole Proprieter Mortgages

In a nutshell, this means you take out the mortgage with your parents or someone else (usually another family member) willing to have joint responsibility for the mortgage payments, but only you actually own the property.

 

All parties will have to meet the lending criteria and show that they can afford the repayments to be granted a mortgage and if one of you is unable to make the payments at any point the others are liable to pay the whole amount. Your family members are not co-owners and are not named on the title deeds so they don’t have any legal claim over the property or any increase in value.

Getting help in this way means you might be able to afford a property when you otherwise wouldn’t or to afford a bigger or better property, as your family members’ income is taken into account along with your own. 

They are essentially designed to help you with the mortgage payments temporarily until you can afford them by yourself. When you’ve come to the end of the initial deal period when early repayment charges no longer apply you may be in a position to switch to a mortgage in your name only.

JBSP mortgages can also help you get a loan if you have no credit history or a low credit score. Once you’ve taken the mortgage out you can then build your credit rating by making the mortgage payments each month to show that you are a reliable borrower.

Our Minimum Loan size is £100,000

A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.