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First-Time Buyers

INTRODUCTION

First-Time Buyers – Step into Your First Home with Confidence

A First-Time Buyer mortgage is specifically designed for those purchasing their very first property. It can be a complex journey, but with the right guidance, it becomes a straightforward and enjoyable experience. These mortgages often come with special offers, lower deposit requirements, and schemes like Help to Buy.

At Credas Financial Services, we understand that taking this first step can feel overwhelming. That’s why we offer expert advice and tailored support to help you navigate the mortgage market with ease. From finding the best deal to ensuring a smooth application process, our experts are here to help you every step of the way.

Owning your first home is a significant milestone, and with our personalized approach, we strive to make the process as stress-free as possible. By helping you understand your financial options, eligibility criteria, and available government schemes, we empower you to make informed decisions with confidence. Let us turn your homeownership dreams into reality.

Explore the Mortgage Choices Tailored for First-Time Buyers

As a first-time buyer, finding the right mortgage is crucial for your home-buying journey. Different options cater to your unique needs, offering flexibility, stability, and even government support.

Fixed-Rate Mortgages

Fixed-rate mortgages provide certainty and peace of mind by locking in your interest rate for a specified period, usually between 2 and 10 years. In today’s market, with interest rates recently fluctuating due to economic conditions like inflation and Bank of England rate changes, fixed-rate mortgages have become an appealing option for many buyers. They allow you to budget confidently, knowing that your monthly payments won’t change, regardless of market conditions. Fixed rates are particularly useful if you want to avoid the risk of potential rate hikes in the near future. However, it’s essential to weigh this against the possibility of rates falling during your fixed period, which would mean you won’t benefit from potential savings.

Variable-Rate Mortgages

Variable-rate mortgages give you flexibility as the interest rate can change depending on the market. This type of mortgage typically follows the Bank of England base rate, which has seen significant movements over the past few years. When rates drop, your payments could decrease, giving you a chance to save money. However, if rates rise, so will your payments, which can make budgeting more unpredictable. There are different types of variable-rate mortgages, including tracker mortgages that directly follow the base rate and standard variable rates set by your lender. While variable-rate mortgages offer flexibility, it’s essential to be prepared for any potential increases in payments and assess your risk tolerance carefully.

Help to Buy Schemes and Government Programs

The Help to Buy scheme has been instrumental in supporting first-time buyers, particularly by reducing the deposit burden. Although the Help to Buy Equity Loan scheme officially ended in 2023, other initiatives such as Shared Ownership and the First Homes scheme remain available. These schemes allow buyers to secure a property with lower deposits and often benefit from government-backed loans or discounted properties. It’s also worth exploring alternatives such as Lifetime ISAs, which offer government bonuses when used towards buying your first home. Keeping abreast of government initiatives is key, as new programs are frequently introduced to support first-time buyers.

OUR PERSONALIZED ADVICE

Our Mortgage Advisors are Committed to Help You

With years of experience, our dedicated mortgage advisors are here to simplify the home-buying process. We offer personalized advice, guiding you through every step of the process to ensure you secure the best mortgage deal that aligns with your financial goals and requirements.

We provide tailored mortgage and insurance recommendations based on your specific financial situation and goals, ensuring you have the best options to choose from.

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We handle all aspects of managing your mortgage and insurance processes, making it easy and stress-free by guiding you through every step.

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We efficiently execute your chosen mortgage and insurance plans, ensuring timely approvals and smooth transitions for your financial peace of mind.

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Who is Eligible for Buy-to-Let Mortgages?

Buy-to-let mortgages are designed for individuals looking to purchase property as an investment to rent out to tenants. While these mortgages cater to a wide range of investors, eligibility criteria must be met. Here’s an overview of who qualifies for a buy-to-let mortgage:

  1. Age Requirements
    Most lenders require applicants to be at least 21 years old, with some setting the minimum age at 18. Additionally, there is often an upper age limit—typically between 70 and 85 years—by the end of the mortgage term.

  2. Income Criteria
    Lenders usually expect a minimum annual income, often around £25,000, to ensure you can afford the property alongside your other financial obligations. This income requirement may vary based on the lender and the type of property being purchased.

  3. Property Ownership Experience
    While not always mandatory, many lenders prefer applicants who are already homeowners or have experience managing properties. First-time buyers may face stricter requirements or limited options.

  4. Deposit Amount
    Buy-to-let mortgages generally require a larger deposit than residential mortgages. Most lenders expect at least 25% of the property’s value, though this can range from 20% to 40%, depending on the lender and property type.

  5. Rental Income Expectations
    The expected rental income must typically cover 125% to 145% of the mortgage repayments, calculated at a higher “stress test” interest rate (often around 5.5% or more). This ensures the property can generate sufficient income to cover the mortgage.

  6. Credit History
    A strong credit score is essential. Lenders will assess your creditworthiness to determine your ability to meet repayments. Adverse credit may limit your options, but specialist lenders are available for those with bad credit.

  7. Professional Status
    Buy-to-let mortgages are accessible to both employed and self-employed individuals. If self-employed, you may need to provide additional documentation, such as tax returns or accounts, to verify your income.

  8. Portfolio Size
    For individuals with multiple properties, lenders may apply stricter criteria to assess your existing portfolio’s financial health. Some lenders have limits on the number of buy-to-let mortgages you can hold.

  9. Property Suitability
    The property itself must meet certain criteria. Lenders typically avoid properties with non-standard construction, short leaseholds, or those in poor condition.

WE ARE THE EXPERTS

Your Path to a Smooth Mortgage Journey

Securing your first mortgage may seem daunting, but with Credas Financial Services by your side, the process becomes clear and manageable. Here's how we simplify the journey for you:

Start with a Friendly Consultation

We take the time to understand your financial situation, future plans, and homeownership goals. This initial conversation helps us determine which mortgage options best align with your needs. Whether you’re looking for long-term stability, lower initial costs, or flexibility in payments, we provide tailored advice based on the latest market trends.

Get Pre-Approved

Pre-approval is a critical step in the mortgage process, providing you with a clear understanding of your borrowing capacity. With recent developments in the mortgage market, lenders have become more diligent in assessing affordability, especially considering rising living costs and interest rates. We help you navigate these assessments, ensuring you’re pre-approved for a mortgage that suits your budget and offers competitive rates. Having pre-approval also gives you confidence when negotiating with sellers, as it shows you’re a serious buyer with financing in place.

Choose the Right Mortgage for You

With access to a wide panel of lenders, we compare options to find the most competitive mortgage rates and terms. In light of recent market developments, lenders have introduced more flexible products to accommodate changing buyer needs, including low-deposit mortgages and deals tailored to buyers with unique circumstances. We evaluate your options, helping you choose the best mortgage, whether you’re looking for the lowest interest rate, the most favorable repayment terms, or additional perks such as cashback offers.

Navigate the Paperwork

The mortgage application process involves complex documentation, including income verification, affordability assessments, and legal paperwork. With new regulatory guidelines in place to protect borrowers, lenders require more detailed documentation, particularly for self-employed applicants or those with fluctuating incomes. We guide you through every step of the process, helping you gather the required documents and ensuring everything is completed accurately and on time.

Final Approval and Moving Day

Once your mortgage is approved, we assist with the final stages of the process, ensuring that all financial and legal requirements are met before completion. Recent market shifts have resulted in stricter timelines for mortgage offers, especially for new builds and shared ownership schemes, making it essential to stay on top of deadlines. We liaise with lenders and solicitors to ensure a smooth transition to completion, allowing you to focus on the excitement of moving into your new home.

OUR SKILLS

How We Can Help You?

We offer expert guidance tailored to your needs, whether you're buying your first home, remortgaging, or expanding your property portfolio. Our team simplifies complex processes, helps you find the best deals, and ensures smooth communication with lenders—making your journey stress-free from start to finish.

Mortgage Advisory Service
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Mortgage Strategy Planning
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Mortgage Management
85%
Financial Analysis
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Expert Guidance

We track market trends, government initiatives, and lender offers to help you make well-informed financial decisions.

Personalized Solutions

We provide customized mortgage advice based on your financial situation, offering solutions aligned with your specific goals.

End-to-End Support

We assist you throughout the process, from consultation to securing approval, ensuring a  stress-free experience.

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