Mortgages

First-Time Buyer Mortgages

Helping you take your first step onto the property ladder

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Start your journey to your first home

Your first mortgage is one of the biggest commitments you will ever make, and many first-time buyers find the process daunting, but it doesn’t have to be. This factsheet makes the process easy to understand and explains everything you need to know about buying your first home.

At Jordan Lynch, we are here to help you with every step of the way and offer independent whole of market mortgage advice. This means we can find a mortgage tailored to your individual circumstances.

We’ve answered the questions you might have

How much deposit do I need?

How much can I borrow?

How much will I pay each month?

How do I apply for a mortgage?

What other costs are involved with buying a home?

Stamp Duty

Stamp duty is a form of tax that becomes payable when you purchase land or property in England or Northern Ireland. If you are purchasing in Scotland this is referred to as Land and Building Transaction Tax and in Wales Land Transaction Tax.

For a first-time buyer purchasing a property £500k and under, you won’t pay any stamp duty of the first £300k. Between £300k – £500k you will pay 5%.

A first-time buyer is someone who’s never owned a property, whether bought or inherited, anywhere in the world.

If you fall outside of the above definition, then the following would apply:

Band Normal rate Additional Property
less than £125k 0% 3%
£125k to 250k 2% 5%
£250k to 925k 5% 8%
£925k to £1.5m 10% 13%
rest over £1.5m 12% 15%

* An additional property purchased for less than £40k will attract 0% tax. For purchases from £40k to £125k the rate will be 3% on full purchase price.

Deposit

To get a mortgage you will need a minimum 5% deposit, for example on a property worth £150k you would need a deposit of £7500.

Mortgage application and product fees

These vary and can generally be added to your loan.

Valuation fee

Some lenders charge a valuation fee upfront before committing to lending you the money.

Optional Homebuyer’s Report or Full Structural Survey

You may decide to pay for a more detailed survey on the property. This is for your own peace of mind and comments on any future maintenance or works that may need doing.

Legal fees

There will be a solicitor’s fee plus the Land Registry charge and a fee to transfer the money.

Moving costs

Hiring a van, hiring help, buying packaging materials etc.

Building and contents insurance

It is a condition of your mortgage to have adequate buildings insurance in place, buildings insurance covers the cost of rebuilding your home if it’s damaged. We can offer you a quote from our panel of 5 star defaqto rated insurer’s

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