Read our top tips for first-time buyer mortgages

PUBLISHED: 19:00 02 March 2019 | UPDATED: 07:35 03 March 2019

Mortgage broker Michael Webb of Bury St Edmunds-based Mortgage Republic.

Mortgage broker Michael Webb of Bury St Edmunds-based Mortgage Republic. Picture: TODD PITCHER


Are you looking to get a foot on the property ladder in Suffolk? We have some top advice on how to secure your mortgage and ensure you get the very best house you can afford.

Young couple getting advice over their first home purchaseYoung couple getting advice over their first home purchase

Suffolk expert Michael Webb, of Mortgage Republic, advises keeping your bank account in order and using Government schemes to boost your deposit.

A first-time buyer can expect a bank or building society to assess three to six months of bank statements. They will expect to see you living within your means, and not over spending, especially if you currently live with your parents. Stay in credit in your bank account, pay your bills on time, and manage your credit file.

Establish what your budget is by using a whole of market mortgage broker

Are you looking to buy your first home in Suffolk? Picture: ANDREW HENDRY/BLOOR HOMESAre you looking to buy your first home in Suffolk? Picture: ANDREW HENDRY/BLOOR HOMES

Speak with a mortgage broker before you start looking at houses to establish how much you can afford to borrow and pay back.

Take the shortest overall mortgage term that is affordable for you

The longer the term of the mortgage, the more interest overall you will pay. Reducing the term by a couple of years may have a minimal impact on your monthly payment, but reduce the interest paid overall significantly. If you can, always overpay as this again will reduce the level of interest you pay overall.

Investigate government schemes such as help to buy and shared ownership

The new build help to buy and shared ownership schemes are fantastic ways for first time buyers to get on to the property ladder. These should be considered; especially in more expensive areas.

Consider a lifetime ISA to save for your deposit

The government will give you a bonus of up to £1,000 a year, which can help you save for your deposit quicker.

Speak to a mortgage broker about ways you can borrow 100%

Even if you do not have a deposit, there are still options in the market place to borrow 100% of the property value. Investigate these with the support of a whole of market mortgage broker and you could get on the property ladder sooner than you think.

Buy a property as big as you can afford

Moving home in the UK costs, on average, £8,000-£10,000 when all costs involved are considered. With the reduction in stamp duty for first-time buyers, buying as big as is affordable initially is good advice even if you do not need a house that size. If you have extra bedrooms you don’t use, you can always rent these to a lodger and currently benefit from a £7,500 tax free allowance for this type of income, which would allow you to pay your mortgage down much quicker - saving interest.

Buy-to-let to get a foot on the ladder

If the area in which you live, and work, is currently unaffordable consider investing in property elsewhere. Look at more affordable areas as a buy-to-let. First time buyers buying to let is becoming much more common. Options are open to first-time buyers with good deposits and good incomes. Your first step on the property ladder doesn’t need to be the home you live in.

Protect your income, and your family

A full assessment of the risks to your income and family’s security should be conducted. Assessing the suitability of products such as life insurance, critical illness, and income protection should be undertaken with the guidance of a qualified professional.

Michael Webb is managing director of Mortgage Republic Limited

Michael’s book, A First Time Buyer’s Guide to Mortgages, is available on Amazon now.

MORE: There was a record number of first-time buyers in 2018

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