The Forces Help to Buy Scheme was introduced by the government in 2014 as a response to the success of other Help to Buy Schemes. The scheme was designed to address the low rate of home ownership among members of the Tri-Service, including the Royal Navy, Royal Marines, Army, and Royal Air Force.
To be eligible for the scheme, members of the Tri-Service must meet certain criteria as determined by the government. The Forces Help to Buy Scheme is part of the Ministry of Defence’s Defence Accommodation Strategy, which aims to provide all service members with access to good quality home ownership.
The strategy recognises the positive impact that home ownership can have on the lives of those with mobile careers, such as improved partner employability, stability for children’s education, and continuity as members transition out of active service.
The Forces Help to Buy Scheme was originally slated to end in 2019, but due to its success, the government extended the scheme and eventually transformed it into an enduring policy. This means that the scheme is now permanent and will continue to be available to all members of the Tri-Service in the future.
The Forces Help to Buy Scheme is an important tool for increasing home ownership among service members and supporting the unique needs of those with mobile careers.
The Forces Help to Buy (FHTB) Scheme allows eligible service personnel to borrow up to 50% of their annual salary, capped at £25,000, for the purpose of purchasing their first or new family home. The loan is interest-free and can be used to cover costs such as a deposit, solicitors fees, estate agents fees, and stamp duty land tax.
To be eligible for FHTB, you must be a regular personnel who has completed the required service length, not a reservist or member of the Military Provost Guard Service, have more than 6 months of service left when applying, and meet the specified medical categories. However, exceptions may be made for special medical and personal circumstances.
Of course, there may be exceptions to the criteria, especially when you factor in special medical and personal circumstances. To learn more about this and more relating to Forces Help to Buy, please see the government guidance website.
One of the advantages of FHTB is that you don’t need to have any savings to use the scheme and enter the property market. The loan from FHTB can be paid back over a period of 10 years, and the majority of mortgage lenders will accept it as a deposit. For more information on the Forces Help to Buy Scheme, please consult the government guidance website.
As a distinguished and trustworthy mortgage broker in London, we have a deep appreciation for the service members of our nation and are committed to supporting you through your home buying journey. From the moment you first get in touch with us until your mortgage is completed and beyond, your dedicated mortgage advisor in London will ensure that you receive exceptional care and the best outcome for your needs.
Note; The Forces Help to Buy is not the same as the standard UK Help to Buy Scheme in London or Shared Ownership Scheme in London either.
If you are a service member who is 55 years of age or older and looking to utilise the Forces Help to Buy Scheme for moving home, you may want to consider your options for equity release in London or retirement interest-only mortgages (RIO Mortgages) as your forces pensions could be beneficial in this scenario.
If you are interested in learning more about equity release and lifetime mortgages, book a free mortgage appointment to understand their features and risks. Keep in mind that a lifetime mortgage may affect the value of your estate and potentially impact your eligibility for current and future means-tested benefits. The loan and accumulated interest will need to be repaid upon death or moving into long-term care.
When a mortgage lender asks to look at your bank statement, they will be looking for a variety of things. One of the main reasons for this is to confirm whether you are a responsible borrower who can manage your finances and maintain monthly mortgage repayments.
We regularly find ourselves being asked by mortgage applicants if gambling transactions look bad on their bank statements?
From splashing your cash on the Grand National once a year, to being a regular customer on internet betting websites, properly licensed gambling is not illegal. After all, there are many advertisements about gambling these days.
Gambling is seen by many as a hobby or pastime, though it’s also important to remember the tagline on all of those adverts, which is to gamble responsibly. This is key, ahead of applying for a mortgage.
Whilst it’s not up to a mortgage lender to tell you how to spend your money or that you should gamble responsibly, they themselves have a duty to lend responsibly and adhere to mortgage regulation.
If a mortgage lender needs to be careful who he lends to and prove to regulators that they are responsible, it is not too much to expect the same approach to an applicant and his finances.
Think about it from your own perspective; If you were going to lend money to someone, you would want to know that the person you are lending to is a trustworthy individual and adamant that they’ll pay you back.
As described at the beginning of this article, a mortgage lender cannot stop you from doing so because gambling is not illegal. Nor is it automatically guarantee that you are going to be declined, it can be possible to get a mortgage!
Where it can be difficult for applicants with gambling habits is that it is up to a mortgage lender to decide whether your transactions are reasonable and responsible or not.
Against this background, they will look at how often these transactions occur, how big these transactions are compared to the income of applicants, and the impact they have on your account balance.
If you only make smaller transactions on an infrequent basis, with minimal impact on your credit score, then a mortgage lender probably won’t bother them. On the contrary, larger, more frequent transactions are likely to be considered irresponsible and you could be rejected.
As we have looked at, a mortgage lender will be looking to see how you manage your finances in order to determine whether or not you can be a reliable borrower.
It is important to remember that mortgage lenders are financial institutions that tend to sell current accounts, overdraft options, credit cards, personal loans and more, so things like this will also play a role in your mortgage application.
The key for a mortgage applicant is how well you can manage these facilities. For example, having an overdraft and occasionally using it isn’t necessarily bad, though going over repeatedly will go against you.
They will also look for any missed payments on any personal loans you have and any undisclosed loans you have. You might be keeping up your payments, but failing to mention a regular outgoing won’t look great.
Finally, a mortgage lender may well consider how much of the month is spent overdrawn. Do you immediately go to credit on payday and spend the rest of the month struggling? How lasting is a mortgage for you?
The simple answer to this is just to be sensible and plan ahead if you can. Generally, a mortgage lender wants to see the last 3 months bank statements, to show your income and regular outgoings.
As such, if you are looking to apply for a mortgage in the future, you should be careful in advance. Take a break from gambling and showcase your bank account in the best light.
Your mortgage broker in London can help you during your mortgage process, as there may be mortgage lenders willing to take fewer bank statements.
The simple answer to this is just to be sensible and plan ahead if you can. Generally, a mortgage lender wants to see the last 3 months bank statements, to show your income and regular outgoings.
As such, if you are looking to apply for a mortgage in the future, you should be careful in advance. Take a break from gambling and showcase your bank account in the best light.
Your mortgage broker in London can help you during your mortgage process, as there may be mortgage lenders willing to take fewer bank statements.
Having said that, it is always important to be as careful as possible before applying for a mortgage because even lenders who are initially willing to accept less still reserve the right to request more if necessary.
Always ensure that you gamble responsibly! There is a warning for your financial and mental well-being.
If you are new to the mortgage world as a first time buyer in London applying for a mortgage, it is always recommended that you speak with a specialist mortgage advisor.
We are experienced in helping customers to obtain mortgages with bad credit, so even if your credit history doesn’t look great, there may still be options for you!
Removing a name from a mortgage can be a difficult process, no matter if it is divorce, splitting up with your partner, or in a rare case just want to have a mortgage in one person’s name, as opposed to two.
There are advantages to having a joint mortgage, however, it may sometimes become a more appropriate option to remove a name from your mortgage. Our Mortgage Advisors in London are here to help, using their experience in dealing with this subject, to help many customers during a financial separation.
Look at the current situation from the lenders perspective. They may be able to see from your finances that you pay everything on time and have the funds to proceed, but it is still a big ask in hoping they will entrust the payment of your mortgage to one person instead of the two they originally signed a contract with.
For the sake of financial security, they would prefer to keep both names on the mortgage. This is so that if a situation like mortgage arrears or more seriously repossession occurred, they would have the options of chasing two parties to cover the repayments. If they were to allow one person off the mortgage, this would mean that they have half the chance to receive a payment.
This will all usually be worked out based on affordability. If the person wants to have the property in their own name, without their now ex-partner or housemate, they will need to go through all the original lender criteria checks to prove they can in-fact afford to keep up mortgage repayments alone and avoid potential arrears.
Where this may be possible can differ between mortgage lenders. With this in mind, you may benefit from the assistance of a trusted mortgage broker in London.
During this time, you may find yourself being advised to switch mortgage lenders and get a better mortgage deal in a sole name, in a bid to erase any ongoing problems. Our specialist advice in London team may be able to relieve some of your stress, please get in touch to reap the benefits of a free mortgage consultation.
Taking your initial step towards finally owning your own home as a first time buyer in London can be quite a stressful activity to undertake, especially if you don’t quite know what you’re doing.
Whilst this thought process commonly occurs amongst first time buyers and even some home buyers, though it’s our job to reassure you that this doesn’t always need to be the case!
You should always make sure that you’re ‘mortgage ready’, so that you’re best prepared for your home buying experience.
Below we have compiled 9 questions that you may want to ask when you are buying a house as a first time buyer in London.
It’s always better for you to seriously think about a property before you commit to a purchase, as taking out a mortgage in your name, will likely be the most significant financial commitment that you’ll ever make.
One thing that you should definitely find out more information about, is how much interest has actually been shown in your potential new home. If it isn’t very popular, you can probably take some time to decide.
If on the other hand, it is a popular property, you may have to decide a lot quicker than you otherwise would’ve liked to.
If there happens to be multiple property transactions happening at one time, completely reliant on every sale and purchase being completed in order to proceed, you have found yourself a property chain.
Your mortgage process can be affected by a property chain if you find yourself in one, as this could slow down your ability to get a mortgage or potentially mean you lose out on the sale of your own property if you are moving home in London.
Luckily if your home is a new build, you won’t have to worry so much about a property chain, and you may be likely to move along the process a lot quicker, due to not having to wait for people to move out.
First time buyers in London will have the advantage even more so, as even if a small chain occurs, they won’t be selling a home to move into one. This is a good thing to mention when discussing property price with the seller.
You’ll quite frequently find that when some homes are purchased, the previous owner will have chosen to leave some items behind.
Items that tend to be left for the next owner, include electronic goods such as washing machines, fridges or freezers, as well as sometimes finding that a shed has been left in the garden.
This won’t apply to new build properties, as they are generally built on the conditions that are agreed upon before the work commences.
The advantage of this for first time buyers in London, is that you’re getting free items that often will be working just fine. The downside is having to pay to remove them if you don’t want them.
If you happen to be buying a new build property, there might additional items you can ask to be put in ahead of time, so they’re ready for when you move.
Another factor to think about, is what the neighbourhood is like. Do you have good neighbours or are they unfavourable? Things like this can impact your decision to actually move to an area.
If you are moving into a property that is on a new build estate, then you and your neighbours will be the building up an entirely new community, which could be a risk as it presents an unknown element.
The running costs of the property can often affect whether or not you decide to buy a property. These costs will be dependant on the area you are looking at, so it’s always best to ask in advance.
Make sure you ask about the costs of Council Tax, as well as the typical utility costs and other things like that. This can help you budget as you go around looking at properties.
The way that your house is facing can also have an impact on your decision to buy a property. Some would much prefer to be able to relax during the summer evenings in their garden, reading a good book or enjoying a nice beverage.
You’ll often find that south facing gardens will cost a lot more money, due to the fact they’ll be getting much more sunlight during the day.
The amount of work that may be required after you have moved in might also affect your budgeting for the property. Here are some of the most common things that home buyers should keep their eye out for;
The house buying process will, generally speaking, begin with property price negotiations between you and the seller. It is important that you are prepared for this so that you are in with the best chance of your offer being accepted on a home you really like.
If you would like to learn further about the best ways to improve your chances during negotiation, please do not hesitate to get in touch. As soon as you are “mortgage ready”, you can begin making offers on properties you wish to buy.
The best way to learn whether or not the offer you are planning to make is too high, it to have a conversation with the seller themselves or even the estate agent, to discuss other offers that may have been made and rejected.
Having a date in mind for when you can move in will allow you to plan everything else around it. You may need to instruct a conveyancing solicitor, pack up your belongings and then finally move them.
Speaking to the seller and finding out the earliest date that you could move in will allow you to be much more organised and prepared for the journey that lies ahead.
We tend to find a lot of customers asking us about the process of being a first time buyer in London when buying a home. Below we put together an extensive list of the 10 steps that you will go through during the mortgage process. We want to make sure that you are in the best possible position to get you prepared for your mortgage journey.
Here are the 10 steps to the home buying process and to obtaining a mortgage;
Now, it’s time to purchase a home and take out a first time buyer mortgage. Getting onto the property ladder will be one of the biggest financial decisions you’ll ever make. The entire experience can be a bit daunting, especially when you have had no experience before.
With the help of a dedicated Mortgage Broker in London, we’ll be able to help you along the process. We aim to take the stress away from you and work hard to ensure you come out with a suitable mortgage deal.
To speak with one of our qualified Mortgage Advisors in London, book your free mortgage appointment today. They’ll take a few key details and look at what you’re hoping to achieve, before starting your process.
During your free mortgage consultation, we’ll be able to run through a Mortgage Affordability Assessment. Our Mortgage Advisors in London will go through your monthly income and regular expenditures, to determine whether or not you can afford the monthly repayments of the mortgage amount you’re looking to borrow.
The reason why doing an affordability assessment is essential before putting your application forward, with a lender, is because they need to be confident that you can afford your repayments. By avoiding the risk of arrears and potential future repossession, something the lender will desperately want to avoid.
A Mortgage Affordability Assessment is something the lender will usually check themselves, so our initial check will help save the time of the lender, ourselves, and more importantly you, from an application that may be declined due to failing on affordability.
During your consultation, you will be able to obtain a Mortgage Agreement in Principle. Which can help give First-Time Buyers in London a boost when making an offer on a property.
You may have seen this under a few different, but similar names. These include ‘Decision in Principle’, ‘Mortgage in Principle’, as well as the abbreviations ‘DIP’ & ‘AIP’. There is no difference between these, other than the name.
The purpose of a Mortgage Agreement in Principle is to document that you have passed a lender’s initial credit scoring system, either via a hard credit search or a soft search.
However, this does not guarantee you will be accepted on a mortgage but is a necessary document to have. Having an A.I.P. will show the seller of a property that you are serious buyer, possibly creating a possibility for price negotiations.
An A.I.P. can last anywhere between 30-90 days, and can easily be renewed once expired. Our Mortgage Advisors in London can usually get one of these turned around for you within 24 hours of your initial appointment.
Following your Agreement in Principle, you will need to find yourself a Conveyancing Solicitor to help you with the legal proceedings of the homebuying process.
Your Conveyancing Solicitor will be able to handle; Contracts, provide any legal advice, conduct local council / authority searches, deal with the Land registry, and transfer the funds you have acquired to pay for your property. As you can see, you must make sure you can choose carefully.
Also make sure to note that Licensed Conveyancers are property specialists who can’t deal with complicated legal issues, whereas more general Solicitors offer a full range of services so can often seem more expensive.
Sadly, whilst we do not offer these services ourselves in-house, our dedicated Mortgage Advisors in London can refer you out to someone to is.
After speaking to a Mortgage Broker in London, passed the Mortgage Affordability Assessment, obtained an Agreement in Principle, and found yourself a Conveyancing Solicitor to handle the legal side of things. You’re now halfway through the process, next it’s time to make an offer on the property you wish to purchase.
With an Agreement in Principle, you will be in a much better place to negotiate on price. With the seller knowing that you have an AIP they may be more likely to sell to you than someone who is willing to pay the asking price but is unprepared. But this isn’t a guarantee.
Worst-case scenario the seller rejects your offer, you can work out a more reasonable offer or find yourself another property. If your offer got accepted, get back in touch with your Mortgage Advisor in London, and they will continue with your mortgage journey.
Make sure to submit the required documents. Your lender will need you to provide various documentation, including the amount you earn from your job, where you live, and how you conduct your finances, are very important to the lender.
If you’re obtaining a joint mortgage, they will require this documentation from both candidates involved. The several types of documents you will need to submit, include;
As for self employed applicants in London you will need to provide;
With your mortgage agreed in principle, and your offer accepted, your Mortgage Advisors in London can now proceed to submit your full mortgage application. Having everything checked and ready by your Mortgage Advisor in London and Administrators, we are ready to submit an application to the lender for a mortgage.
Your Mortgage Advisor in London will send off all the gathered documentation for this, and then wait for them to respond with whether or not the application has been accepted or declined. Sadly, there is no given time frame, however, our Mortgage Administration team will be able to chase the lender for an answer on this for you.
During the process, the lender will require a valuation survey of your property to be undertaken. These are usually carried out by the lender’s choice. The valuation is to help understand the true value of the property.
If you’re paying above its actual market value, the lender may be less willing to accept your offer. Because they’ll be out of pocket and unable to make back the full borrowed amount. This terminology is also known as a ‘Down Valuation’.
Your Mortgage Advisor in London will be able to help you choose the right survey for you. Each surveyor comes with a different price. Some will just want to check the property’s worth, whereas some will also provide information on any structural concerns as well as possible repairs.
Once your lender has checked over your case and assessed all the evidencing documentation, they will present you with your Mortgage Offer.
Our team of Mortgage Advisors and Administrators in London will make final checks to make sure nothing got missed. Next, it’s down to your Conveyancing Solicitor to take your purchase through to completion.
Now for the exciting part, you’ve now officially went from a first time buyer in London to a homeowner. By now, we hope you are happy and ready to begin your new life, in your new home.
Just have to wait for the key and moving-in date. We hope you found our service beneficial and received a fast and friendly Mortgage Advice service in London. If you have chosen a fixed-rate mortgage, at the end of your term, we will be in touch to help out once again with your remortgage in London!
During our time as an open and honest Mortgage Broker in London, we understand that sometimes scraping together a deposit, is one of the biggest hurdles for a first time buyer in London to get onto the property ladder.
We tend to find, parents, grandparents and on rare occasions, even friends who want to help the ones they care for get onto the property ladder. They’ll provide either a portion or the entire amount of the deposit to put down on a property and obtain a mortgage. Find out what gifted deposits are and how they work.
A gifted deposit is money given by parents, grandparents, or friends to a homebuyer to use towards your deposit to put down on a property and obtain a mortgage. It can either be a portion or the entire amount.
The money given isn’t a loan and gifted deposits are given to you with an understanding that the money doesn’t need to be repaid.
Gifted deposits are helpful to first time buyers in London. Mainly those who are financially capable of covering their mortgage repayments, but struggling to save up for the initial deposit.
We tend to find, that these situations happen quote often. Perhaps they’ll have larger outgoings, such as rental payments, home energy bills, and essentials. That there isn’t anything else left to put into savings for a deposit.
By receiving a gifted deposit, this will allow you to gain access to much better rates of interest during your mortgage process, especially if that gift is above the minimum 5-10% deposit requirement.
As we’ve said, it’s mainly parents or carers who can gift you the deposit. This is often discussed online using the terminology “Bank of Mum & Dad”, don’t let the name throw you off this can include adopted parents too.
Sometimes other family members may also be able to help out with a gifted deposit. Though this entirely depends on the mortgage lender that you end up with. That’s why it’s worth getting in touch to speak to a Mortgage Advisor in London beforehand.
We often hear back from customers who have no idea their parents can help with their mortgage! This is why we aim to inform and encounter more people to ask for some extra help, so more people can get a chance to get onto the property ladder.
The majority of parents are more than happy to help their children to find a home of their own, comfortably living as opposed to struggling whilst living in a rental property.
In some areas taking out a mortgage may save you more money per month than you would get from renting, of course, this depends on several factors, but in some circumstances, it can happen.
Gifted deposits can come from inheritance, although parents can sometimes gift it much earlier if they have enough money saved or have released equity from their own home.
Some mortgage lenders out there won’t accept loans as a means of paying off your deposit. It will be often related to the lender not being so sure if you can afford to pay back both simultaneously.
There are no limits to the amount that can be gifted to a home buyer, it’s worth remembering that some lenders will want you to have a minimum of 5% from your own savings.
The more you can afford to put down, perhaps combining savings and gifts, you’ll open yourself up to better deals.
We tend to find, that it’s normally First Time Buyers and home movers in London who will benefit the most from the gifted deposit.
A gifted deposit can be used to cover the initial 5% deposit for the Help to Buy Equity Loan Scheme. However, this will depend on the lender.
Your donor will need to sign a gifted deposit form stating that it is not a loan and is in fact a gift. Additional proof such as ID, address, and bank statements will be required.
As a fast and friendly mortgage broker in London, we aim to provide our customers with the highest level of customer service, through a fast and friendly Mortgage Advice in London service.
No matter your mortgage situation. When someone gets in touch with us for Mortgage Advice in London, we will consider all cases, no matter how complex, and try our best to find a resolution.
A trusted and experienced Mortgage Broker in London is available seven days a week, from early on until late. Our Mortgage Advisors in London will be ready and waiting to offer their support at all times.
Book your free mortgage appointment today with an expert mortgage advisor in London and we’ll see how we are able to help you on your mortgage journey.
Fixed-term contracts were once considered to be more of a less conventional form of income, though nowadays they’re a lot more commonly found.
As a general rule of thumb, the only difference between this fixed-term contract employment and regular employment, is how the contract that you have is structured.
Regular employment generally will typically mean you have to sign a contract at the start of your employment, which will remain in effect until you are either terminated or you hand in your notice to the employer.
If you are employed on a fixed-term contract, this will mean you are only a contracted employee for a specific length of time, as opposed to permanently. That being said, you’re still classed as PAYE, which is similar to what a teacher on a per year contract.
Yes, it is absolutely a potential option. It may be a little challenging if you are looking for a first time buyer mortgage in London, though we do still have mortgage lenders on panel who will consider these types of circumstances.
How long your current contract length is can have an impact on whether or not you can obtain a mortgage. If your contract is a short-term one, you may find it even more difficult to take out a mortgage.
The reason for this, is because you are not guaranteed any sort of long-term employment. Coupled with a large, long-term outgoing such as a mortgage payment, this could be a risk to a mortgage lender.
Most mortgage lenders will want to see consistent, longer term contracts one after another. This will showcase to the mortgage lender that you are likely to keep on with regular contracted work, which in turn will help you in maintaining your mortgage payments.
In addition to this, you can further increase your chances of having a mortgage application accepted by having written confirmation from your employer that once your contract has ended, it will be renewed with the same employer.
If you have had or are currently having any breaks in employment, mortgage lenders may see this as a problem due to their uncertainty of whether or not you can maintain your monthly mortgage payments.
On the off chance you have had any significant employment gaps over the course of the last 12 months, you may not be able to get a mortgage. This is dependant on the mortgage lender and their own criteria, though a more sustainable income may work in your favour more with some lenders.
Further to this, what is defined as a gap in employment will vary per mortgage lender. Some will see a week as a gap of employment, whereas others may deem 4 to 5 months as a gap.
An expert mortgage broker in London will be able to check lender criteria and match you up with the most appropriate one.
In order for a mortgage lender to consider accepting your application for a mortgage, you will need to provide them with multiple pieces of identification.
The types of documentation you will need to submit to a mortgage lender, include;
An expert mortgage advisor in London will be able to take a look at your documents in advance, to make sure it is all suitable for passing along to a mortgage lender.
If they require any other forms of ID from you, they will let you know so that you are more prepared for your mortgage journey ahead.
It is very likely that, providing you have a solid history of consistent employment, with very few or no gaps and a contract with a good amount of time left on it, you will be able to apply for a 95% mortgage, only putting down a 5% deposit.
Unfortunately, because it is deemed to be a risk to the mortgage lender, if your contracts are more short-term or you have some gaps in your employment, you may need to put down a much larger deposit in order to secure a deal with a mortgage lender.
Perhaps you are already a homeowner. If this is the case and you are on a fixed-term contract, heading towards the end of your fixed mortgage period, you may be curious of the options you have present.
It is at this stage that we would greatly recommend getting in touch with remortgage experts like ourselves and benefitting from remortgage advice in London.
This is because on top of the possibility of new deals that you may be able to access, there may well have been a change in your income. Maybe you aren’t working as often as you were in the past? Is your average income lower than it used to be?
It is elements like this that can have an effect on your ability to remortgage your property. Depending, you may have limited options, perhaps even with extra costs.
Enquiring for remortgage advice in London with expert mortgage advisors is definitely recommended ahead of jumping in to remortgage your home.
For anyone who is curious about whether or not it is possible for a home buyer or homeowner to obtain a mortgage whilst on a fixed-term contract, the simple answer to this question is yes, it is.
In order for you to have a much better chance of getting a mortgage with these circumstances, book a free mortgage appointment today with a dedicated mortgage broker in London and we’ll see how we are able to help you.
The Lifetime ISA (LISA) is a new, modern scheme that helps first time buyers create a housing deposit to get onto the property ladder. This is not to be confused with the ended Help to Buy ISA scheme.
This scheme provides buyers with a great incentive to purchase a property using this scheme. There are many many benefits that can only make your mortgage process easier! As a mortgage broker in London, we are seeing a rapid increase of applicants with a Lifetime ISA in place.
It is becoming more and more popular, especially with the phenomenal increase in the cost of living. Having a deposit boost in place will benefit your application and could potentially put you in front of other buyers when making an offer on a property.
A Lifetime ISA is a savings account where your money grows tax-free. It works just like a normal savings account where you can add money in lump sums or through smaller monthly instalments, it’s completely up to you.
For every penny that you save, you will receive a 25% government bonus. The way that this works is that every tax year, whatever the amount is that you have saved, you will receive an extra 25% bonus on top.
The total amount per tax year that you can save is capped at £4,000. So, the maximum that you can save per year is £5,000 (£4,000 own savings + £1,000 govt. 25% bonus).
You can only access the scheme as a first time buyer in London. And, the funds that you have saved can only be used on your first property.
Once money has been transferred into the ISA, it cannot be withdrawn without a 25% charge. For example, if you were trying to withdraw £500 from your ISA, you will only get £375.
There is another way to use your Lifetime ISA, you can use it for later in life savings. As a Mortgage Broker in London, we do not offer advice in this case.
It is also worth knowing that you can also only have one Lifetime ISA in your life, therefore, you will need to decide what you want to use it for.
In order to set up your Lifetime ISA account, you will need to meet the scheme requirements:
Find out more about the LISA on the government’s OwnYourHome website or get in touch with our team at Londonmoneyman. Our first time buyer Mortgage Advisors in London are available to talk 7 days a week, just give us a call!
If the Lifetime ISA sounds like the scheme that can help you make a start on your mortgage journey, make sure to get in touch with our team. first time buyer mortgage advice in London is only one call away!
Alternatively, follow our book online process and select a date and time for your appointment.
Whether you are local to the London area or are moving from outside of London, one of the main factors when moving home in London is knowing more about the area you are looking to live in.
Of course this is beyond just simply looking at where you would like to live. You will also need to look at how the area currently looks, what any of the nearby facilities are, what would be included in your dream property?
To help you to create a better understanding of the type of area that you would prefer to live in, we have put together a detailed list of the different types of factors that you, as a home buyer, need to look out for when you are looking to find a new home in London.
Make sure to come up with an idea of the type of area you would like to start living in, after all you will likely be living within that property for a long time.
Seeing as London is mostly made up of city properties, it is perfect for those who prefer a more urban lifestyle. Of course if you prefer the country life, that’s going to be a little more challenging, as you may need to move slightly further afield towards the outer areas of London.
Tying into the previous point, if you are looking to move more to the outside of London, rather than closer to the center, you will of course need to make sure there are plenty of transport links, especially if you do not drive.
Whether it is for work, to see family and friends or for the night life, transport is key to any area. Fortunately, because of the significance of London, you will find plenty of transport links allowing you to commute to and from the city itself.
Whilst that in itself is a positive, there is a cost element. What type of public transport are you taking? How much does it cost to get there and which method is most cost effective?
If you are driving, how much fuel will you need to pay for per week? These are all important things to bear in mind before making a decision.
If you are a home buyer who has their own children, you should do some research on what the nearest schools are. Review the school league tables and any Ofsted reports, in order to get a better idea of what they may be like.
If you currently don’t have any children, whether it’s on the cards for the future or not, it’s always worth checking this just in case, as a way to future proof yourself.
When you are making plans to live within a certain area, it is important to prepare for various facilities you would like to have nearby. Making a list of this is always handy, noting which ones are essential and which ones you just really want.
For example, if you would like to have any nearby shops or gyms, take a look at the local area to see what is there. Closer to the center of London, you are likely to find most of what you are looking for. The downside is that these things may be busier or cost more.
Of course if you’re living further away from London, you may need to prioritise what is essential, but you will have the benefit of these possibly costing less. Remember that shops probably outweigh facilities like a gym, due to the needs of general living.
Some people will factor in how far away their family and friends are, into where they are looking to live. Many will want their family and friends nearby, especially if they have kids. Others may prefer a quiet life, only socialising sporadically.
This relates back to the transport links topic too, as even if you are a little bit away from family and friends, you may still be within viable travelling distance, due to the amount of transport options around the area.
Everyone wants to have something that is worth the money they are paying for it. This will entirely depend on the area you are looking to live in, especially when you consider London property prices.
Generally some people may look to go for a cheaper property initially, compromising on features and facilities they would’ve liked, in order to save some money, before moving later down the line.
With London being as expensive as it is, one of your compromises may be the area itself, if you would prefer the urban life. This is because these houses tend to be at a premium cost, and you are probably getting more value for money further out of the city.
An area is often defined by the local community. Some may prefer a quieter life, staying to themselves, whereas others may prefer to have a much busier community. It’s always worth speaking with an estate agent to learn more about what it’s like.
Additionally, there may be a community Facebook page or local newsletter to take a look at, as those have become more popular over recent years. Once again, because of London and the wider areas significance, a lot of information and opinion can likely even be found online.
A lot of home buyers will be looking for a new home because they will have found or will be on the search for a new career. It is important to look at the level of distance between your new home and your new workplace.
As touched upon, many people will commute to work in London from the outskirts, with plenty of transport links to choose from. This makes quieter, more affordable living a much more viable option. Some people prefer to work from home, so this may reduce the need to travel to work.
There are various different types of property that are available on the property market, with the area you are looking to buy in being a factor in which type is more prevalent.
Some will prefer to live on an end-terrace with a garden to relax in on a sunny day, whilst others would much rather live in a modern flat or a studio apartment.
Make sure you review all of the different options that are out there for you. Look at the viewings to get a good idea of what sort of property you would prefer to live in.
Any information you can obtain regarding future improvements in the area you’re looking to live in is also useful to have, especially if you’re looking to build a life within that new home and stay there for a number of years.
Online research will definitely be worth your while when you are looking to find any future investments. It’s important to consider whether or not these will be beneficial to you and your lifestyle.
If you prefer a quiet country life, your ideal perfect world may be turned upside down if there’s any plans for a sudden big housing development nearby.
When the time comes to start making offers on a property and getting yourself a mortgage, it is worth getting yourself booked in for a free mortgage appointment. Our fast & friendly mortgage advisors in London will be glad to help!
We work from early until late, every day of the week and including some weekends and bank holidays, subject to appointment availability.
Whether you need help as a first time buyer mortgage in London or are moving home in London, we will be more than happy to help you along with your mortgage journey.
Regardless of whether you are a first time buyer in London who is looking to find their dream first home, or you are looking to go through the process of moving home in London, it will soon become apparent that there are a lot of mortgage options out there for you.
There will be some mortgage options that are more popular than others, with some that are a little difficult to encounter altogether.
Below we have put together a comprehensive list of the different mortgage types that we come across. Each of these sections will also be accompanied by one of our video guides that explains them in more detail.
You can find many more useful mortgage guides here on moneymanTV. To learn more about the types of mortgages, go directly to our “Mortgages Explained” playlist here.
A fixed-rate mortgage will mean that a homeowner will have mortgage payments that stay the same for the duration of a specific period.
It is entirely up to you how long your payments are fixed for, with many of them choosing to have between 2 and 5 years. This is to protect against any changes to inflation, interest rates or the economy, leaving you with the knowledge that your payments are safe and consistent.
You may wish to fix in for longer than this, however, a lot can change between 5 and 10 years, so it is entirely possible that fixing in for that long could leave you at a disadvantage at that point in time.
The Bank of England will have a set base rate, of which a tracker mortgage will follow alongside. This means that neither you or your mortgage lender will be setting the interest rate of your mortgage.
It will typically be at a percentage above the Bank of England base rate. If the base rate was sat at 1% and you were tracking 1% above that base rate, then you would be on an interest rate of 2% on your mortgage.
These types of mortgages don’t tend to be as popular as fixed-rate mortgage, as they can often fluctuate throughout your introductory period.
This is the “standard” type of mortgage that you may think of. When a homeowners has a repayment mortgage, they will be paying a combination of capital and interest.
So long as you continue to keep up your mortgage payments for the length of the mortgage term, you will be guaranteed to have paid off your entire mortgage balance by the end of the term and you will own your home outright.
On the topic of your mortgage payments, a repayment mortgage is considered to be the most risk-free way to pay your capital back to the mortgage lender. In the early days of your mortgage, you will be paying more interest than capital.
By the end of your term, you will be paying back more capital than interest, which will make your balance reduce much faster than it would’ve done near the start.
Nowadays it is mostly modern buy-to-let mortgages that will be set up on an interest-only basis. It is much less likely for someone to obtain a residential property on an interest-only basis.
Though it is not so likely for a mortgage lender to obtain an interest-only product on a residential property, it may still be possible in some cases, such as if you were looking to downsize at an older age or if you have investments you can use to pay back the capital.
Mortgage lenders have very strict mortgage product rules and the loan to values tend to be much stricter now than they were in years gone by.
When you have an offset mortgage, your mortgage lender will set you up a savings account that will run alongside your mortgage account.
How this works is, for example, if you have a mortgage balance of £100,000 and you deposit £20,000 into this new savings account, you will only be paying interest on the difference, so in this case, £80,000.
This is often considered to be a fantastic way to save yourself some money, especially if you are a higher rate taxpayer. That being said, it’s not for everyone. As is the case with all these options, speak to a trusted mortgage broker in London to see which option is best for you.
Read our 15 Reviews
Londonmoneyman.com & Londonmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
Contact
Follow Us
Londonmoneyman.com & Londonmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
