Good news for First-time Buyers in Birmingham; Your chances of getting your foot on the property ladder may have increased. There are many different mortgages routes to choose from, depending on your circumstances.
As a Mortgage Advisor in Birmingham, it is our job to explore and explain the different schemes available to you. We will research the possibility of you getting accepted for a mortgage without the Help to Buy scheme and discuss these options with you until we find the most suitable way forward for your situation.
You will find that there are lots of different Help to Buy schemes available for you out there. However, you can’t just pick and choose a scheme that you like, as you won’t necessarily qualify for all of them. This is where a Help to Buy Mortgage Advisor in Birmingham could check your eligibility for any schemes first before you rush into applying.
The two most popular Help to Buy schemes are the Help to Buy Shared Ownership and the Help to Buy Equity Loan. Here is a little more information on both these schemes:
The Help to Buy Shared Ownership scheme allows you to purchase a percentage of a property and pay the remaining share on rent. For example, you could buy a share of a home (which usually has to be between 25% or 75% of the home’s value, though this can be lower) and then you will have to pay rent on the percentage of the property that you don’t own.Â
At a later date, you can then look to buy bigger shares when you can afford to do so.
A very popular choice is the Help to Buy Equity Loan Scheme. This is a loan from the Government that you put towards the costs of purchasing a newly built home. The loan can be up to a maximum of 20% of your newly built home’s purchase price, which means that you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.
You must remember that the government’s percentage is not a gift, it is a loan. It will be interest-free for the first 5 years of owning your home. If you aren’t able to pay it off within 5 years, you will start receiving interest on it.
Here is an example for a home with a £200,000 price tag:
If you purchased the home for £200,000, your 5% cash deposit would be £10,000 – You would receive a 20% equity loan of £40,000 from the Government – Leaving £150,000 to be mortgaged.
As your dedicated Mortgage Broker in Birmingham, we are able to provide Help to Buy Mortgage Advice across all schemes. To find out more information get in touch, alternately below we have listed some most common Help to Buy mortgage scenarios.
We will always recommend you the best option for your circumstances and make sure that you feel happy and assured through the full Help to Buy process.
Here are some of the most common Help to Buy mortgage situations that we come across:
If you feel like this scheme will benefit you, get in touch with an expert Mortgage Advisor in Birmingham and receive a free mortgage consultation. Alternately you can find more about the Help to Buy schemes available to you at https://www.ownyourhome.gov.uk/
You will need at least 5% of the sale price of your new build property in Birmingham. The Government will then loan you up to 20% to the value of the property.
Your free mortgage consultation in Birmingham will last approximately one hour. We will then recommend a mortgage for you with no obligation for you to proceed and you can decide whether or not you wish to go ahead.
As your Mortgage Broker in Birmingham, we carry out a Fact Find to establish your needs prior to recommending the most suitable mortgage for you. A credit check is then required for an Agreement in Principle and then once you have provided all the relevant documentation and a valuation of the property has been carried out a formal mortgage offer can be issued
Our Mortgage Advisors in Birmingham recommend that you try and get your Agreement in Principle before you take up the decision of starting to view properties in Birmingham, to avoid disappointment. At the very latest you should obtain one prior to making an offer to assist your bargaining position with the seller.
An Agreement in Principle typically lasts for between 30 and 90 days depending on the lender. If your Agreement in Principle expires it can always be refreshed. If you need help obtaining one, our Mortgage Advisors in Birmingham can usually get one sorted for you within 24 hours of your application.
It can be possible to get a second mortgage on your home in Birmingham for debt consolidation or home improvements. It may also be possible to take out a mortgage on a second property if it is for your own use, the use of a family member, a holiday home or a Buy to Let.
If you have had credit problems you may still be able to get a mortgage but you will likely need to put down a higher deposit than usual, perhaps 15% of the purchase price.
You can get a mortgage in Birmingham once you have submitted at least one year’s accounts. Most lenders use your salary + dividend to calculate the maximum mortgage whereas others go off your net profit.
To prove income it’s usually three payslips for an employee and the latest 2 years’ accounts for Self Employed. In addition, you will need to produce proof of ID, address and 3 months’ bank statements.
Our free consultation in Birmingham typically lasts up to an hour or so. We can turn round an agreement in principle within 24 hours and a formal mortgage offer takes about three weeks on average. Before you know it, you will be moving into your new property in Birmingham!
Give us a call and a Mortgage Advisor in Birmingham will recommend the best Help to Buy scheme based on personal circumstances.
Enjoy finding your dream home in Birmingham
Make an offer on the property and once accepted, we will progress your mortgage application.
We will be here to answer all of your mortgage questions right through till you get your keys.
A telephone call where we can take some initial details and find out about your plan of action.
Enjoy finding a property!
Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.
Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.
