4 Tips to Secure Your First Mortgage in Aberdeen

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If you’re a first-time buyer in Aberdeen looking to buy a home this year, read on for our four top tips to secure your first mortgage.

1. Save deposit

You won’t get anywhere on the property ladder with out money for a deposit.

Deposit is key to getting yourself a mortgage. At the moment, you could get a mortgage in Aberdeen with at least 5% of the property’s value. A larger deposit will make you less risky for mortgage lenders and as a result they’ll generally offer you more competitive deals with lower interest rates.

Read our 9 First Time Buyer Deposit Saving Tips.

2. Check credit rating

Having a nice shiny credit rating is a plus.

Even if you have a good income and large deposit, your mortgage application could still be refused if your credit rating is poor. Missing credit card payments or not being on the electoral roll at your current address can make all the difference.

You can check out what your credit rating is by using sites such as Experian, Noddle and ClearScore.

3. Documents Ready

Having the correct documents ready could speed up your first mortgage process. These documents could include:

  • Suitable ID
  • Last 3 months payslips
  • Last 3 months bank statements

4. Speak to someone

By using a mortgage broker in Aberdeen, not only will you receive local knowledge, but a broker will compare hundreds of mortgage lenders and thousands of mortgage deals to see what mortgage suits your circumstances the best.

Aberdeen Mortgage Company are a whole-of-market mortgage broker. We look at mortgage rates from lenders such as Halifax, Nationwide, Barclays and many more to see who has the best deal for you.

Next steps

If you’re looking for some advice of how to get started on the property ladder. Aberdeen Mortgage Company advisers can help explain to you the whole process. We stay with you and hold your hand all the way until you have your key in the door.

View our infographic – 10-step plan to moving into your first home in Aberdeen.

Speak to our expert Aberdeen Mortgage Company advisers to learn how we could help with your first mortgage. You can give us a call on 01224 316200, email us or fill in our online enquiry form.

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Your home may be repossessed if you do not keep up repayments on your mortgage.

This firm charges a fee of up to £595 for mortgage advice. The fee will depend on your circumstances and will be discussed and agreed with you at the earliest opportunity.

Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority.

95% Mortgages Return for First Time Buyers & Homemovers

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The COVID-19 pandemic has led to a reduction in the availability of high loan-to-value (LTV) mortgage products, particularly for prospective homebuyers with only a 5% deposit. This has left many hard-working households unable to get onto the housing ladder. In today’s Budget the government has therefore announced a mortgage guarantee scheme to support a new generation in realising the dream of home ownership.

It will give buyers – both first-time and existing – the option to put down a 5 per cent deposit on a home with a value of up to £600,000.

Are you eligible?

The scheme is designed to help creditworthy households struggling to save for the higher mortgage deposits required by lenders in the current environment. For this reason, a mortgage eligible for a guarantee under the scheme will need to:

  • be a residential mortgage (not second homes) and not buy-to-let
  • be taken out by an individual or individuals rather than an incorporated company
  • be on a property in the UK with purchase value of £600,000 or less
  • have a loan-to-value of between 91 per cent and 95 per cent
  • be originated between the dates specified by the scheme
  • be a repayment mortgage and not interest-only and
  • meet standard requirements in terms of the assessment of the borrower’s ability to pay the mortgage, for example a loan-to-income and credit score test

Source:  The mortgage guarantee scheme outline, gov.uk, March 2021

The scheme is intended as a temporary measure. It will be open for new mortgage applications from April 2021 to December 2022.

Looking for advice?

For more information and advice on which mortgage lenders are taking part in the scheme, speak to our award-winning expert mortgage advisers at Aberdeen Mortgage Company. Call 01224 316200 or fill in our online enquiry form.

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

This firm charges a fee of up to £595 for mortgage advice. The fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.

Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority

Scottish Government launches First Home Fund

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The Scottish Government has launched a pilot scheme called First Home Fund. The scheme is to help first-time buyers with the cost of purchasing a home in Scotland. The scheme will contribute up to £25,000 towards the cost of buying a property through a shared equity scheme. A total of £150 million will be made available between now and March 2021.

How will First Home Fund work?

The scheme is open to all first-time buyers in Scotland. It can be used for both new-build and existing properties. First time buyers will need a minimum deposit of about 5% and the mortgage must be at least 25% of the purchase price. There is no price cap on the purchase price. It is a shared equity scheme, which means the purchase cost is split between the buyer and the Scottish Government. You will own the property outright. There are no monthly payments to be made towards the Scottish Government and no interest will be charged. The first-time buyer would repay the government’s contribution when the property is sold. For example, if you pay 85% of the property’s value through a deposit and a mortgage, the Scottish government will hold a 15% share. When the home is sold, you would keep 85% of the final sale price and the government would receive 15%. Over time you can also increase your share of equity and repay all or part of the government’s stake in the property.

Which lenders offer mortgages through First Home Fund?

  • Bank of Scotland
  • Barclays
  • Glasgow Credit Union
  • Halifax
  • Leeds Building Society
  • Nationwide
  • Scottish Building Society
  • Scotwest Credit Union
  • TSB
Please note that lenders will have their own individual requirements when providing a mortgage. Speak with an expert mortgage adviser about what lender suits your needs. For more information about what mortgage is right for you, speak to our expert mortgage advisers. Call 01224 316200 or fill in our online enquiry form. Sources: Scottish Government First Home Fund, 2020 https://www.gov.scot/collections/first-home-fund Link Housing, 2020 https://linkhousing.org.uk/find-a-home/affordable-home-ownership/scottish-government-funded-schemes/first-home-fund/ _ _ _ _ _ _ _ _ _ Your property may be repossessed if you do not keep up repayments on your mortgage. This firm charges a fee of up to £395 for mortgage advice. This fee will depend on your circumstances and will be discussed and agreed with you at the earliest opportunity. Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, trading as First Complete Limited which is authorised and regulated by the Financial Conduct Authority.

9 First Time Buyer Money Saving Tips

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Buying your first home is an exciting time, but it can take a while to build up enough savings so that you can put down a deposit. We’ve compiled a list of 9 money saving tips you can use to work towards saving for your first-time buyer mortgage.

  1. Make a shopping list

Plan your week’s meals at the start of each week. Buy what you need at the shops. Remove the need to go to the shops everyday & the temptation of buying expensive takeaway food.

  1. Sell clutter online

No point in packing for your new home with items you don’t need/use anymore. Sites like eBay, Gumtree and even Facebook make it a whole lot easier to get rid of those unnecessary items and make a bit of money.

  1. Cheaper brands

Can you really taste the difference in supermarket own brands? Do you need the most expensive toilet cleaner? Savings may be small to begin with, but can mount up month to month.

  1. Pay off debt

Not a straight savings tip, but you’ll be saving on interest payments. Try clearing as much of your debt before committing to a mortgage worth thousands of pounds.

  1. Skip alcohol

Could you do a couple of weekends off the beer & wine? Cut out “a few drinks after work”. Try one month with no alcohol. You’d be surprised how much you save.

  1. Discount websites

You still want to have some sort of life while saving for your first home. Sites like Groupon and Wowcher have great daily deals & offers for dining out and a variety of other activities.

  1. Make lunch for work

Buying a premade sandwich, pasta, going to a local deli – £5 a day, £2.50 on coffee, £1 on snacks = £8.50 a day = £2,000 a year. Make something the night before or even get out your bed that few minutes earlier.

  1. Shop during the sales

If you really need to go clothes shopping while saving, there are mid-season sales always happening. If gift shopping, be organised and take advantage while the sales are on. Spend wisely.

  1. Extra work

Is there any overtime going at your work to take full advantage of? Could you work a couple of evenings a week in a new part-time job? The money could be added straight into your savings.

If you’re looking for advice for a first-time buyer mortgage, contact Aberdeen Mortgage Company on 01224 316 200 or fill in our online enquiry form.

Are there any money saving tips you would suggest? Tweet @AberdeenMortgCo with what ideas you have.

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YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. The Financial Conduct Authority does not regulate some forms of Buy to Let.

11 Mortgage Words You Should Learn When Buying a House

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Arranging your mortgage and buying a new build property is an exciting time. However, the jargon that is used throughout the process can be confusing. We’ve put together a jargon buster to help you along the way during your house buying process.

Your property may be repossessed if you do not keep up repayments on your mortgage.

If you’re considering buying a new-build property and want advice on the best mortgage options for you, request a callback from our expert mortgage advisers.

Request a callback

 

  1. Agreement in Principle

This is the agreement provided by the mortgage lender which states the amount they are prepared to lend to you subject to a full mortgage application with supporting documentation and their enquiries during underwriting being satisfied. It’s useful if you haven’t found a property to buy but would like to know how much you could potentially borrow.

  1. Conclude Missives

The contract is normally formed by missives of sale between the solicitors on behalf of each the seller and purchaser. Missives are letters of body of which contain proposed sale contracts and negotiate terms. Once all the contractual terms are agreed, the missives are said to be concluded, and these serve as a binding contract for the sale of the property.

  1. Conveyancing

The process of transferring the legal title of property from the seller to you.

  1. Disbursements

This is money that your solicitors have had to pay to third parties during the conveyancing process, and which they will claim back from you. Disbursements will include things like search fees and land registry fees. Check that disbursements are included in your quote (most are known in advance) otherwise your bill could be a lot higher than you expect.

  1. Land & Buildings Transaction Tax

This is the tax charged by the Scottish Government for buying a property/land. The amount varies depending on the value of the property.

  1. Land Registry Records

These records state who owns what land/property. When a property changes hands your solicitor will make sure this transfer is recorded at the Land Registry.

  1. Local Authority Search

A search that asks the local authority about things that may affect the property, such as : whether the road the property stands on is maintained by the council, planning applications that may affect  the property, possible planning restrictions, and rights of way.

  1. Mortgage

This is the loan used to buy a property. Because it is secured on the property being bought the property cannot be sold until the mortgage is paid off (either at the end of its term or, if you are selling, by using proceeds from the sale to pay off the balance).

  1. Mortgage Deed

The legal charge that gives the mortgage lender rights over the property until the mortgage has been repaid.

  1. Mortgage Valuation

This is the valuation survey carried out by your bank or building society before they will lend on a property. This will help determine how much a lender is willing to lend.

  1. Title Deeds

The documents that prove ownership of a property and which set out any rights or obligations affecting the property. If the property is mortgaged then the deeds may be held by the mortgage lender.

For any queries speak to our expert mortgage advisers at Aberdeen Mortgage Company, call 01224 316200 or fill in our online enquiry form.

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This firm charges a fee of up to £395 for mortgage advice. The amount of fee will depend on your circumstances and will be discussed and agreed with you at the earliest opportunity.

Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. The Financial Conduct Authority does not regulate some forms of Buy to Let. Lifetime Finance Group Limited.

6 Reasons to Buy a New Build Property

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Buying a new build property can be exciting. With more and more developments popping up, we look at 6 reasons why a new build property could be perfect for you.

If you’re considering buying a new-build property and want advice on the best mortgage options for you, speak to our expert advisers.

Request a callback

  1. Your structure is covered

    The majority of new-build homes come with a 10-year NHBC (National House Building Council) warranty (check with the development you’re visiting). This provides protection to house buyers for any structural defects. Some house builders also provide their own two-year warranty.

  1. It’s a blank canvas

    A new house is fresh, bright and clean. With no previous owners, you have a blank canvas to design how you want. Add your own style to each room without having the cost of stripping wallpaper and removing carpets.

  1. Help to Buy

    The Scottish Government’s Help to Buy affordable new build scheme, helps buyers buy a new build home with minimum 5% deposit. The Government then take an equity stake of up to a maximum 15% of the value of the property. Our mortgage advisers can help you with schemes like Help to Buy.

  1. Energy-efficient

    New build homes are built to the latest environmental standards. They are super insulated, resulting in new build properties being six times more energy efficient than houses built in Victorian times*.

    Research from the NHBC Foundation has shown that living in a new home could result in savings of around 55% on gas and electricity spending*.

  1. Incentives

    Check the builder’s sales website before you go. Some of them may be offering incentives, such as paying for your land and buildings transaction tax or even upgrading your kitchen worktops. Also, there’s no harm in asking if there’s anything extra they are willing to help you with.

  1. No previous owners to annoy you

    With a new build property, you won’t have to wait on the owners  of the property finding somewhere else to live. Once you’ve reserved your property, you’ll then be given a completion date so that you are able to start planning your move.

While the reasons to buy a new-build are strong, there are always disadvantages – such as if there are any delays in construction, your mortgage offer could expire.

We, at Aberdeen Mortgage Company, are new-build mortgage specialists. For any queries, call 01224 316200 or fill in our online enquiry form.

*NHBC – Why Buy This Home? Accessed April 2018

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YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

This firm charges a fee of up to £395 for mortgage advice. The amount of fee will depend on your circumstances and will be discussed and agreed with you at the earliest opportunity.

Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. The Financial Conduct Authority does not regulate some forms of Buy to Let. Lifetime Finance Group Limited.

Help to Buy (Scotland) Scheme Extended for 2 More Years

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The Scottish Government has announced it will be extending the Help to Buy (Scotland): Affordable New Build scheme for a further two years.

Help to Buy Scotland is set out to help first time buyers and home-movers purchase a new build home. The scheme helps people to buy new-build homes without the need for large deposits. The Scottish Government will put forward up to 15% deposit of the purchase price of a new build home.

You are likely to require a deposit of minimum 5%, your mortgage and deposit must cover a combined minimum 85% of the total purchase price.

The Scottish Government’s equity stake can be repaid at any time and is based on the value of the property at the time of repayment.

Since 2013, Help to Buy Scotland has so far helped over 12,000 households buy a new home. [1]

Help to Buy: Scotland criteria

  • Your mortgage and deposit cover a combined minimum 85% of the total purchase price.
  • Available to help first-time buyers and existing homeowners (Existing homeowners must sell their home before they can buy a home with assistance from the scheme)
  • The property purchase price cannot be more than the threshold price.
  • For financial years 2018-19, 2019-20 and 2020-21 the threshold price is £200,000

Terms & Conditions apply. For further information see https://www.mygov.scot/help-to-buy/

For more information on the Help to Buy Scotland scheme, speak to our expert mortgage advisers.

Request a Callback

[1] BBC News, Scottish Help to Buy scheme extended for two years, http://www.bbc.co.uk/news/uk-scotland-scotland-politics-43634733

Your property may be repossessed if you do not keep up repayments on your mortgage.

This firm charges a fee of up to £395 for mortgage advice. The amount of fee will depend on your circumstances and will be discussed and agreed with you at the earliest opportunity.

Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. The Financial Conduct Authority does not regulate some forms of Buy to Let. Lifetime Finance Group Limited.

Highest level of First Time Buyer products since 2007

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New data from Moneyfacts show that the amount of products available to First-time buyers has reached its highest level since 2007, with the number of 90% and 95% loan-to-value mortgages now totalling at 723 products.

This marks a 73% increase on five years ago in 2010, when buyers with small deposits only had the choice of 194 products. In in 2013 there were 437, last year there were 600 and now there is 723.

With low mortgage rates and an increase in products, it looks like lenders are finally recognising the importance of first time buyers.

Charlotte Nelson, finance expert at Moneyfacts says “The improving higher-LTV market is also not an indication that riskier lending has returned, as the Mortgage Market Review is now firmly entrenched in bank policy, and only borrowers with a squeaky clean credit history and enough savings will be able to make the first step onto the housing ladder.”

For more information on how we could help you step on to the property ladder, call us on 01224 316 200 or fill in our online enquiry form.

Source: http://moneyfacts.co.uk/news/mortgages/mortgage-alert-rocketing-number-of-ftb-deals/ Published: 06/07/2015

YOUR HOME MAY BE REPOSSSESED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE