Beresfords follow first time buyer event success with exclusive 95 mortgage

By the Beresfords Marketing Team - 10th November 2011

As you will have seen from our last newsletter, on Saturday the 16th April Beresfords Chelmsford office held a dedicated first time buyer event which offered help and advice to those looking to take that first step onto the property ladder. As Beresfords have seen the number of first time buyers looking for property jump by nearly 40% during the first quarter of 2011, the event was perhaps unsurprisingly very successful..

Hot on the heels of this comes a new 95% mortgage product for first time buyers available through Beresfords Mortgages.

John Lineham, Director of Beresfords Mortgages, commented: "Saving for a deposit is no easy task, especially in today's financial climate, with many customers, especially in recent years, having to put down larger deposits to secure their mortgage. We are therefore very pleased to have been able to secure an exclusive product which will hopefully make buying a new home more achievable. As independent mortgage advisers we are able to offer all clients, no matter whether they are buying through Beresfords or not, help and support to secure a mortgage. What’s more we do not charge a fee for this service.”

The Government recently introduced the First Buy Direct Scheme to give those looking to take that first step onto the property ladder £250 million worth of aid. Properties under £250,000 are also exempt from Stamp Duty for first time buyers. John concludes by saying: “The fact that we have seen an increased level of activity by first time buyers is very positive news and will help a lot of other people who are in a chain looking to move. If more first time buyers are looking to buy, other people will move in all price ranges as a result.

“These vital increases in borrowing options for those trying to climb onto the housing ladder will also ease the pressure on the ‘Bank of Mum and Dad’ where parents have had to dip into their savings to help their children get their first property”

Beresfords will be holding another dedicated first time buyer event on Saturday 11th June. Further details regarding the location will be confirmed shortly.

How can you secure your first mortgage? John continues by offering his top tips.

They will be able to offer you impartial advice by going to any bank or building society depending on your needs and circumstances. You don’t have to walk up and down the High Street or make lots of ‘phone calls and most of all, being independent, they will make sure you get the mortgage that’s best for you, not the lender! They will also be familiar with other sources of funding aimed specifically for first time buyers such as shared equity schemes through housing associations.

Don’t try to borrow more than you can afford to pay back. When buying a home it is vital that you are able to comfortably meet your monthly repayments and that you could continue to make them should interest rates rise. It is possible to borrow 90% of the purchase price of a property, but it will cost you. The greater the deposit you can put down, the lower the mortgage rate you can expect to pay. Your mortgage adviser will run through your budget with you but you to should ensure that you are not biting off more than you can chew. Affordability is an important aspect of a Lenders decision making so complete a budget planner with your adviser

Your credit score is now very important – lenders use it when they decide whether to make you an offer and what interest to charge. Your adviser can assist you with a credit check. Keep all payments up to date and make sure your credit file is accurate.

Make sure you are on the electoral roll as lenders will use this to check that you live at your current address. Income multiples remain important, but the amount you earn is only the start. Lenders will look at your debts and other outgoings, along with your income. If you have a lot of credit or store card debt then be sure to keep up to date with your regular monthly payments.

If you are unable to obtain a mortgage on your own income could family or friends help? They could assist you with the deposit or act as guarantors. If they are prepared to be guarantors then their income will be taken into account when deciding how much you can borrow. However do remember that they will be responsible for repaying the mortgage if you default. If your family cannot help then you may consider buying with friends. Some lenders will take the incomes of up to four friends into account but remember to get a legal document drawn up so that everyone knows exactly where they stand.

Each one triggers a search of your credit report and lenders who see lots of them in a short period may think you are desperate for money or even think that fraud is being planned. That’s why it’s vital to speak to an independent financial adviser who will know the right lender for your circumstances.

You will need buildings insurance and are strongly advised to take out contents cover and life insurance. You may also wish to consider payment protection insurance which your adviser can guide you on so that your payments are covered if you become ill or lose your job.

It is something that a lot of us avoid but it is vital that you look at the detail of your mortgage offer and the lender’s terms and conditions. Your adviser will run through this documentation with you.