How much deposit will I need?
A typical deposit is usually 10% of the purchase price, but there are some lenders that will still allow you to borrow 5%. Family springboard mortgages are another option where technically your deposit is 0% but at least a 10% deposit from a family member will need to be put into the savings account linked to the mortgage for a set period of time.
How much can I borrow?
The amount you can borrow depends on many factors and there is not a one size fits all but, as a general rule of thumb, the following calculation tends to give you a ballpark figure:
Acceptable Income x 4.5 = Estimated Maximum Mortgage Sum
What mortgage is best for a first time buyer?
The best mortgage will depend on your situation. Lenders have a variety of options available, including low deposit mortgages, springboard mortgages, fixed rate and tracker deals. For more information about these types of mortgages read our best mortgage for first time buyers guide.
What if I have a poor credit score?
Your credit score will be taken into consideration when securing a mortgage. Every lender has different credit score and mortgage criteria. If you have a poor credit score you may still be able to secure a mortgage, it will just be about finding the right lender for you.
How long will it take to get a mortgage offer?
The mortgage application process depends on a variety of factors, but typically it takes between 10-15 working days. Using a mortgage broker can certainly speed up the process by focusing on finding mortgages that you are likely to be approved for.
Should I use a mortgage broker or go directly to the bank?
All lenders have different lending criteria and affordability assessments which can be hard to navigate. It may come as a surprise that the interest rate is not the be-all and end-all when it comes to picking a mortgage product. There are many other factors to consider, such as available term, overpayment facilities, early repayment charges, portability, cashback, product fees and lender service levels. An impartial, whole-of-market mortgage broker will consider all elements and find the most suitable mortgage tailored to your situation.
Why can’t I just use a comparison site?
Comparison sites are becoming increasingly popular for mortgages, but they tend to show limited information with a headline interest rate. Plus, not all lenders use comparison sites so you could miss out on a good mortgage deal. A whole-of-market broker, on the other hand, has access to a wider range of lenders and will find the best mortgage for you.
How much do mortgage brokers charge?
Many brokers will charge a fee for their services, including consultations, delivery, purchases and negotiations. At Boon Brokers, we pride ourselves on offering a completely free service. We will not charge you a single penny for our advice, even if you decide not to proceed with your mortgage application. We receive money from charging commission to the mortgage lenders instead of you. This commission paid to our firm has no impact on you as the borrower - it is a sunk cost from the lender.
Do I qualify as a first time buyer?
A first time buyer is someone who has never owned a property before in the UK or abroad. The only property you could own and still qualify as a first time buyer is a commercial property such as a shop, restaurant, or salon that has no living space.
