A First-time buyer is someone who has never owned a residential home of their own, however, this excludes ownership of Commercial properties. One of the first boxes that need to be ticked by a first-time buyer is the amount of deposit they are going to put down, as this will establish the amount of borrowing required from Mortgage Brokers for First Time Buyers
The loan to value popularly known as LTV varies from lender to lender and hinges on the amount of deposit the borrower is willing to put down. The higher the deposit, the more options there are available, in terms of interest rates.
As part of the First-time buyer mortgage application process, the mortgage lender will look at several aspects pertaining to the applicant and the property including affordability criteria credit history, property valuation, and conveyancing. Once satisfied the lender would make an offer and if successful this would proceed to completion.
In most cases, a Buy to Let mortgage will be taken out on an Interest only basis, rather than a capital repayment basis. On an Interest, only the borrower would repay only the interest component to the lender, while the capital would still be outstanding at the end of the mortgage term. To ensure that the customer will be able to repay the capital at the end of the term, the lender may require details of the proposed repayment vehicle.
The eligibility of a Buy to Let mortgage is assessed by lenders differently from the way they would assess a Residential Mortgage. For a Buy to Let mortgage, the lender will expect the rental income on the said property to be higher than the expected repayment on the mortgage.
A Buy to Let mortgage is essentially an investment made by the borrower where the objective is to rent the property rather than reside in it as their primary home. Buy to Let mortgages are generally more expensive than a standard residential mortgage with lenders expecting higher deposit amounts to be put down by the borrower and the interest rates can be higher too.
A Buy to Let mortgage is essentially an investment made by the borrower where the objective is to rent the property rather than reside in it as their primary home. Buy to Let mortgages are generally more expensive than a standard residential mortgage with lenders expecting higher deposit amounts to be put down by the borrower and the interest rates can be higher too.