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.

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/
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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. 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.

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.