How Much Can You Borrow?

This depends on your personal circumstances, such as your income, your outgoings and whether you're buying alone or with someone else.

Don't be tempted to take on too much debt, and remember that interest rates can rise and your circumstances may change, so protect yourself against these risks.

Stamp duty is a government tax that you pay when buying a home above a set amount.

The amount is a percentage of the value of the property. First time buyers don't have to pay stamp duty on homes under £250,000. This will last until 31st December 2011.

Broker fees may be payable for mortgage advice. These would typically be 0.5% of the loan we arrange for you.

However, we will discuss your payment options with you and confirm the actual amount payable before we begin to provide our services.

First Time Buyer Mortgage

Buying a home for the first time can be expensive and daunting. High property prices have made it difficult to get onto the property ladder, and the profusion of different mortgages and schemes aimed at helping the first time buyer can be confusing.

Seeking advice from a financial advisor could seem to be just another cost, but at Peter Male we are committed to finding you the best deal to suit your circumstances. We know all the angles and can give you sound advice, plain and simple.

Before you begin to look at properties for sale, find out how much you can borrow, and what you can afford, remembering that you will have many one-off initial costs to consider, as well as other regular costs that will eat into your income.

You will probably have to find a deposit of at least 5%-10% of the value of the property, plus lender's fees and charges. You might also have to pay surveyors' fees, Land Registry fees, Stamp Duty and Land Tax.

Then there is the cost of moving in and insurance to protect the building and its contents, as well as insurance to cover your mortgage payments in case you fall ill or lose your job. You will also have to pay council tax.

Central to all this, however, is finding the right mortgage amongst the many types available. Some are targeted specifically at first time buyers and you could be eligible for help to buy a home through a low-cost home ownership scheme, such as part buy/part rent.

There are also low-cost home ownership schemes for newly built homes, and schemes specifically for council or housing association tenants or key workers (such as a police officers or teachers). Or you may want to consider asking family or friends for financial help.

Related Tips & Advice

Buying With Others; Friends, Family or Partner

When the deposit and other costs are more than you can afford, you might want to buy a home with family members, friends or a partner, but do think carefully about what might happen if circumstances change and one of you wants to sell their share of the property. 

It is wise to start with a legally drawn-up agreement that makes clear how the property will be divided in case of death, or if one of you decides to give up their share.

Home Buying Schemes

There are two types of schemes to help people buy newly built homes – an equity loan where you get a loan towards the purchase price with no fees for five years, or shared ownership where you have a mortgage for half the cost of your home and pay rent on the other half.

As your financial situation improves you can pay more money to own your home outright.

Need more advice? Speak to our first time buyer mortgage advisor today.