Mortgages for First Time Buyers

An agreement in principle, is a certificate issued by a mortgage lender that gives an Estate Agent confidence that you are able to get the mortgage you need to buy the home you are looking to buy.

When you’ve seen the ideal place to buy, you’ll need to make your offer to the Estate Agent.

The Estate Agent will want your ID, Agreement in Principle, proof of deposit and details of the solicitor you will use to do all the legal work.

When the offer has been accepted, the Estate Agent will issue a document called a “Memorandum of Sale” that gives the seller’s details as well as yours, the solicitor’s details and the property address and amount you have agreed to pay.

When the bank has approved your mortgage application, you will receive a “Mortgage Offer.”

The mortgage offer will typically be valid for six months and sets out the mortgage terms you have applied for.

• Check your credit report – you can check this with several credit reference agencies such as Experian, Equifax or TransUnion. It’s important to understand what’s on your report. If you identify any adverse credit history, you could still be eligible for a mortgage, and if there are any mistakes, it’s possible to apply for them to be corrected.
• Make sure you are registered to vote, as this helps your credit score and also helps you to prove your identity.
• Ensure your ID is in date and your driving licence has your correct address.
• Get confirmation of your income ready. For employees, this will typically be 3 months’ payslips, recent P60s and a contract of employment if your job started recently. For self-employed, this will be Annual tax calculations and tax year overviews confirming taxable income and taxes paid.
• Get your finances in the best shape possible – reducing borrowing where possible will always positively impact any mortgage application.
• We will thoroughly check everything for you before recommending a mortgage and submitting an application to ensure it has the best possible chance of being approved.

When you have your mortgage offer and all the legal work has been completed, your solicitor will “exchange contracts” with the seller’s solicitor.

This is the point at which you will sign contracts, pay your deposit, and agree on the date when you will get the keys to your first home.

This is the day you’ve been waiting for, and you will collect the keys to your first home.

Your mortgage starts today, and you will arrange to take meter readings to make sure you only pay for the gas-electric and water that you use from today.