First time buyer mortgages

The thought of applying for a mortgage can be nerve-racking. There are literally thousands of mortgage products out there. And even when you’re armed with all the facts, it can be tough to find one that is right for your needs.
When you apply through Relevare, we ensure the home buying process is as stress-free as possible. Our advisor are not restricted to any particular providers and will act solely in your best interests. Therefore, you can be confident that the products recommended will be the right for your circumstances.
Once we have gathered all relevant information from you, we will search our extensive mortgage lender platform to offer you the right mortgage and protection products. We will clearly explain the products on offer and why we feel they are right for you.

Every unsuccessful mortgage application may harm your chances of success as each refusal will appear on your credit record.
Using one of our mortgage and protection advisors will maximise your chances of being accepted the first time around.

Going to your existing bank or building society means you’ll only be offered its
products, but you really want to get the compare deals from across the market.
That’s where our mortgage advisor can help.
As mortgages are such a significant transaction, getting professional
help is very advantageous.
Our advisors will source relevant products that fits your credit
history, offer an extra layer of protection if things go wrong, and carry more clout
with lenders to ease acceptance on otherwise unobtainable mortgages.

With many fantastic and market-leading rates available, our mortgage and protection advisors will listen attentively to requirements, ensuring we are on hand to get you the right mortgage to suit your situation.

Before you find your ideal home, we will:

● Check your borrowing potential
● Inform you of likely repayment figures
● Review any incentives available from lenders
● Source the lenders and available rates
● Advise what documents the lenders are likely to require

Yes, Lenders will usually want to see three years of accounts history. However, a selection of lenders will lend against your last year’s income. You may also be able to use your company’s net profit instead of using salary and dividends payments.

There are several very competitive mortgage options available if you are self-employed. Our Mortgage and protection advisors are on hand to guide you through all the available options and provide advice on the specific documents the mortgage lender may request.

Shared Ownership can be a helpful scheme to get a foothold on the property ladder. As the name suggests, the scheme allows you to be able to buy a share of between 10% and 75% of your new home.
You will then pay a subsidised rent on the remaining share to the housing association or housing authority, along with a monthly service charge.
The share you can purchase will depend on what you can afford and also the eligibility criteria.

Who is eligible? (Shared Ownership)
Eligibility can differ between housing associations;
The housing association will decide based on how much you earn usually £80,000 or less outside London, or £90,000 in London and the cost of local housing.
Earn too much, and you won’t qualify, earn too little and you won’t either.
There are different categories of people eligible for shared ownership, first-time buyers being among them. The scheme is also open to previous homeowners who are now struggling to get back on the property ladder, as well as existing shared owners, i.e., people moving from one shared ownership property to another

Many housing associations require buyers to be UK/EU/EEA citizens, while others will consider non-UK citizens, subject to visa status. Other exceptions will depend upon the housing association’s terms.

Staircasing (Shared Ownership)
It is the process of buying additional shares in your Shared Ownership property.
For instance, you might want to increase your ownership from 25% to 50%, or from 50% to 75%

You may be able to increase your share by as little as 1% each year. This option to increase your share annually by 1% was introduced in April 2021 and is more likely to be available on shared ownership homes launched since then.

There’s also the option to purchase a share worth 5% or greater.
When buying a bigger share than 1% the current market value will dictate the price you have to pay.
The housing association will instruct a RICS surveyor to conduct the valuation. As the applicant, you may be required to pay for it.

Help to Buy ISAs are no longer open to new applicants. But, if you already have one, they let you save up to £200 a month towards your first home, with the state adding a 25% bonus (max £3,000) on top of what you save. Plus, you earn interest on whatever you save, and as it’s an ISA, that interest is tax-free.

However, you only get the bonus when you use the Help to Buy ISA cash as a deposit for your first home. If you’re a first-time buyer saving for a mortgage deposit, the Lifetime ISA launched by the Government in 2017

The HTB Equity Loan scheme is available for first-time buyers purchasing a new build property with a purchase price of up to £600,000, with regional price caps applicable to set the maximum purchase price in your area.
The Government will lend up to 20% (40% in London) of the cost of a brand-new home. This means you are only required to have a 5% cash deposit and a 75% mortgage.
There are some other criteria to be considered, such as:
● The Government has committed to the HTB scheme being available for new purchasers until 31st March 2023.
● The last date homebuyers can reserve homes and apply for the Help to Buy: Equity Loan is 6 pm on 31st October 2022
● In non-London areas, the maximum purchase price varies from £186,100 – £437,600 depending on where in England you are planning to purchase.
● Purchasers using the scheme are not permitted to own a home or residential land, either now, or in the past. This also includes properties abroad.
● All HTB homebuilders must have agreed to sign up to the New Homes Ombudsman, launched in 2021. The scheme aims to enforce and promote high building standards.
● Homebuilders are not allowed to charge any ground rent on HTB properties.
● The interest paid for the HTB scheme is set at 1.75% of the equity loan in year 6 and then increases by the Consumer Price Index (CPI) + 2% per annum thereafter. The equity loan remains interest-free for an initial 5-year period.
Paying back part of your equity loan
● The smallest repayment you can make is 10% of the market value of your home.
● Paying back part of your equity loan will reduce the monthly interest payments you’ll need to pay from the sixth year of taking out the equity loan.
Example

Your remaining equity loan is 10% of the market value of your home.

If you are a first-time buyer in England paying £300,000 or less for a residential property you will not be required to pay Stamp Duty Land Tax (SDLT).

If you are a First-time buyer paying between £300,000 and £500,000 you will pay SDLT at 5% on the amount of purchase price over £300,000.

If you are purchasing property for more than £500,000 you will not be entitled to any relief and will pay SDLT at the normal rates.

Am I an eligible first-time buyer?

To be defined as a first-time buyer you must be an individual who has never owned an interest in a residential property in the United Kingdom or anywhere else in the world.

Joint purchasers

If more than one individual is purchasing a property then all parties will need to be first time buyers to qualify for the relief.

How and when to pay

If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion and add the amount to their fees.

If your solicitor does not pay the tax for you, you can file a return and pay the tax yourself. You must send an SDLT return to HMRC and pay the tax within 14 days of completion.