Buying a house is one of the most important purchases you will ever make. It can be a very daunting experience but also very exciting if it’s your first time. In the current climate, you will probably need at least 5% deposit towards the mortgage before a mortgage lender will consider you. Although having a 10% or 15% deposit will usually get you a lower rate. You may now also qualify for the help to buy 2 mortgage guarantee scheme which allows you to buy a house with only a 5% deposit to qualify you must have:
- You need a 5% deposit
- You must have an income
- You must be a first time buyer or home mover
- You must live in the property
- The maximum purchase price is £600k
- You don’t qualify if you intend to rent the property or own another property in the UK or overseas.
As a first time buyer you should seek advice to see how much the bank is able to lend you. Each bank and building society has different levels of affordability and also has different rules when assessing your income and expenditure. The new MMR rules which came into effect in April 2014, which have been widely publicized in the recent media have caused banks to request far more information about your spending habits than they used to.