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First Time Buyer Mortgage Advisors in Milton Keynes
Buying your first home is very exciting but also can seem a little bit daunting. We are here to hand hold throughout the whole journey of getting a first time buyer mortgage - from helping you set a budget, organising your DIP and then guiding you through the steps involved until you are the owner of your new home.
By talking to us, we can run through the whole process and advise you on the mortgage options that are available to you. Even if you already started your journey and have found a property we can still assist you with getting the mortgage, as our access to exclusive rates means it is always worth asking us to research the market on your behalf to ensure you are getting the best possible deal.
In the meantime, we've outlined below some background information on mortgages for first-time buyers that we hope you'll find useful. You are welcome to contact us at our offices in Milton Keynes, Bedford, and Cambridge at any time.
By talking to us, we can run through the whole process and advise you on the mortgage options that are available to you. Even if you already started your journey and have found a property we can still assist you with getting the mortgage, as our access to exclusive rates means it is always worth asking us to research the market on your behalf to ensure you are getting the best possible deal.
In the meantime, we've outlined below some background information on mortgages for first-time buyers that we hope you'll find useful. You are welcome to contact us at our offices in Milton Keynes, Bedford, and Cambridge at any time.
Mortgages For First Time Buyers
The amount that a lender will lend to you very much depends on your individual circumstances and the different lenders' affordability criteria.
Lenders look at what you can borrow by assessing your affordability based on the number of people applying for the mortgage. They take into consideration your income and outgoings as well as any other liabilities such as loans, credit cards etc that you may have. Some lenders offer very good deals for first time buyers, and with our access to exclusive rates it is always worth asking us to research the market on your behalf.
There are additional costs to pay as well such as Stamp Duty, Solicitor Fees, and a valuation of the home you are buying, and by talking to us, we can run through all these details so you have a clear picture of what you can expect.
Lenders look at what you can borrow by assessing your affordability based on the number of people applying for the mortgage. They take into consideration your income and outgoings as well as any other liabilities such as loans, credit cards etc that you may have. Some lenders offer very good deals for first time buyers, and with our access to exclusive rates it is always worth asking us to research the market on your behalf.
There are additional costs to pay as well such as Stamp Duty, Solicitor Fees, and a valuation of the home you are buying, and by talking to us, we can run through all these details so you have a clear picture of what you can expect.
What Is Stamp Duty?
Stamp duty land tax (or land and buildings transaction tax in Scotland) is a lump-sum tax that anyone buying a property or land costing more than a set amount has to pay. The rate you'll pay the tax at varies based on the price of the property and the type
How it Works?
Stamp duty was reformed in 2014 from the slab system (where you'd pay a single rate on the ENTIRE property price) to a more progressive system where you only pay the rate for the proportion of the property that's at that rate. The great news is that for first-time buyers purchasing a property under £500,000 you will pay a smaller stamp duty rate to those people who already own a property – to try to make it easier for you to get on the property ladder.
As a first time buyer you will pay zero stamp duty on the first £300,000 of any home costing up to £500,000 (and only 5% on any proportion between £300k and £500k). For properties over £500,000 you simply pay the standard homeowner stamp-duty rates.
Here is an example - A first-time buyer purchases a property worth £500,000, so the Stamp Duty that needs to be paid is: You pay nothing below £300,000, which is £0. You pay 5% on the value of the property above £300,000, which is £10,000. So in total this means you'll pay £10,000 (£0 + £10,000).
First Time Buyer Stamp Duty Table
Buy to Let and 2nd Home Stamp Duty Table
(1) Rate applies to that portion of the purchase price. (2) Properties up to £40,000 are exempt from Stamp Duty. Properties between £40,000.01 & £125,000 will be charged on Stamp Duty on the full purchase price.
As a first time buyer you will pay zero stamp duty on the first £300,000 of any home costing up to £500,000 (and only 5% on any proportion between £300k and £500k). For properties over £500,000 you simply pay the standard homeowner stamp-duty rates.
Here is an example - A first-time buyer purchases a property worth £500,000, so the Stamp Duty that needs to be paid is: You pay nothing below £300,000, which is £0. You pay 5% on the value of the property above £300,000, which is £10,000. So in total this means you'll pay £10,000 (£0 + £10,000).
Stamp Duty Tables
Please see tables below for full details.First Time Buyer Stamp Duty Table
| Purchase Price | Rate On Main Residence |
|---|---|
| Up to £300,000 | 0% |
| £300,000.01 – £500,000 | 5% |
Buy to Let and 2nd Home Stamp Duty Table
| Purchase Price | Rate On Main Residence (1) | Rate For Additional Properties (2) |
|---|---|---|
| Up to £125,000 | 0% | 3% (2) |
| £125,000.01 – £250,000 | 2% | 5% |
| £250,000.01 – £925,000 | 5% | 8% |
| £925,000.01 – £1,500,000 | 10% | 13% |
| £1,500,000.01+ | 12% | 15% |
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