Spellman financial Services
Mortgage Advice for First Time buyers in Coventry
spellman financial services
My name is Luke Spellman and I am the owner of Spellman Financial Services and the Mortgage Broker you will speak to if you wish to get in touch.
We’ve created this guide exclusively for First Time Buyers in Coventry & Warwickshire looking to buy their first homes.
mortgage Advice for First Time Buyers in coventry
First time buyers
We’re not just here to find you the cheapest Mortgage. We’ll be a friendly voice you can turn to when you’re unsure of anything, and we’ll be on your side the whole way.
We also have expert knowledge on these specialist Mortgage Advice areas:
Adverse/Bad Credit, Contractor including CIS and IT, Self-employed, Help to buy/Shared ownership and Right to Buy Mortgages.
Fortunately, getting a Mortgage as a First Time Buyer is much the same as anyone else looking to obtain a Mortgage.
How to get a Mortgage as a First Time Buyer
1. Mortgage in Principle
At this stage you will need to speak to a Mortgage Advisor and establish how much you are able to borrow.
Your advisor will then recommend the cheapest Mortgage available to you and complete a Mortgage in Principle with the Lender.
The Lender will determine your maximum borrowing capacity based mainly on your income, outgoings and a credit check.
Providing you pass, you will then be issued with a Mortgage in Principle Certificate that you can show to estate agents, when looking to make an offer on a property.
Please note: You may hear different Lenders and Mortgage Brokers call this a Mortgage/Decision/Agreement in principle. These are all different names for the same thing.
2. Find a Property and a Solicitor
Now you have your Certificate you can go and view properties, and look to make an offer on your dream home.
At this stage you can look to find and instruct a Solicitor who will be required once you have an offer accepted on a property.
Don’t be rushed or pushed into anything by Estate Agents or Developers. If something doesn’t feel right speak to your Mortgage Advisor and they will be able to guide you. It is illegal for an Estate Agent to force you to use any of their services and is something that is slowly being stamped out.
3. Mortgage Application
Once you have had an offer accepted on your first home, it is time to submit your full Mortgage Application.
This is where the Lender will assess you and your documentation such as Payslips, Bank Statements etc. As well as assess the property you are looking to buy.
This is to establish that you and your new home fits the Mortgage Lenders Criteria.
How long this will take will depend on how busy your Mortgage Lender is at the time of application. For a rough guide, it will usually take 2-3 weeks on average.
4. Mortgage Offer
Congratulations, this is formal confirmation by the Lender that you have been accepted.
Your Mortgage Offer is a document which states the full terms and conditions of your Mortgage.
This Offer is specific to you and the property you are buying.
Conveyancing is the legal side and final part of the purchase. Here your Solicitor will check that your new property is safe to buy from a Legal point.
As well as requesting various things from your Sellers Solicitors. Your Solicitor will complete “local searches”, which is where they request lots of information held about your property on Local Authority databases.
For example, whether there have been any disputes involving the address or whether there are any planning applications submitted which will affect your property.
This process can take a little while. 2-3 months on average.
6. Exchange of Contracts and Completion
Exchange of Contracts and Completion usually happen around the same time or within a week of each other.
Exchange is where the Sellers and Buyers sign contracts, and then the Solicitors literally exchange these. At Exchange the purchase is legally binding on both the Sellers and the Buyers.
A deposit of 5-10% is usually required by the buyers at this stage.
Shortly after, Completion will take place and you will officially become a homeowner. Congratulations, you will now get the keys to your new home.
Do I need Mortgage Advice
Mortgages are regulated in the United Kingdom. Which means you have to speak to a Mortgage Advisor and receive Advice. Whether that means speaking to a Mortgage Advisor from a Bank or Building Society or going through a whole of market Mortgage Broker in Coventry.
We’re of course going to say go through a Mortgage Broker, but there are many good reasons for this. And there tends to only ever be one reason not to, cost. But these days most Mortgage Brokers fees are competitive and some won’t charge you at all.
Mortgage Brokers won’t just find you the cheapest deal either. The other main benefits to a Mortgage Broker are:
1. A friendly voice on your side, which can mediate between you, the estate agents and your Solicitors.
2. A good Mortgage Broker will always save you time. They will ensure the Mortgage goes through smoothly in the quickest amount of time possible.
3. They are experienced and can cut through the jargon and advise you on all stages of the purchase process.
4. They can deal with all the Mortgage paperwork, chasing and other admin.
First Time Buyer with no Deposit ideas in Coventry
Right to Buy
Right to Buy enables Council or Housing Association Tenants to buy their properties at large discounts. The discount can be used, in most cases, instead of a deposit.
Concessionary Purchase is where you buy a property at less than the market value. The difference between the purchase price and the market value can be used instead of a deposit.
The most common Concessionary Purchases are tenants Buying from Landlords. Or a Daughter or Son buying from a parent.
This of course all rely’s on the generosity of a Family member or Landlord.
Whilst Shared Ownership will usually require some form of deposit. The amount is usually considerably less than what is normally required. This is because your require deposit can be based on the share you are buying.
For example: If you buy a 25% share on a £200,000 property. You will only need a Mortgage and a deposit to equate to £50,000. If you are eligible for a 95% Mortgage, you will then only need a £2,500 (5%) deposit.
First Time Buyer Stamp Duty in Coventry
Fortunately most First Time Buyers won’t pay Stamp Duty.
Any First Time Buyers buying a property up to £300,000 will not pay Stamp Duty.
Purchases between £300,001-£500,000 are charged at 5% tax, with none payable below £300,000.
And First Time Buys above £500,001 are charged at 2% on amounts between £125,001-£250,000 and 5% between £250,001-£925,000.
For Married applicants where one is a First Time Buyer and one is a previous Homeowner. Normal Stamp Duty rules will apply and you won’t be eligible for First Time Buyer Stamp Duty.
For unmarried applicants, only one needs to be a First Time Buyer to achieve the lower Stamp Duty rates above.
First Time Buyer Mortgage Calculator
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reasons to get in touch
Luke has more than 10 years’ experience in customer facing and customer focused roles within the Financial Services industry. including more than 5 years in Mortgages.
He prides himself in delivering excellent customer service, whilst guiding his customers through the whole process, always being on hand to provide regular updates and answer questions.
5 Star rated
We’ve been independently rated 5 stars by more than 100 of our customers on Vouched For, Google & Facebook.
As a result Luke has been featured in the Times the last two years in a row, being awarded Vouched Fors Top Rated Financial Advisers Certificate for 2019 and 2020.
We pride ourselves in delivering great customer service and always being on hand to help.
Protection and Insurance Advice will always be free.
And in many cases our Mortgage Advice will be completely free to you.
However, I never turn down a challenge and do work with Specialist, hard to place cases and in these instances may need to charge a fee.
If this is the case it will be made clear from the outset and will only be payable once the Mortgage has been approved.
Expert Mortgage Advice
I am a fully CeMap qualified and FCA Regulated Mortgage Advisor with in-depth knowledge on these Specialist Mortgage advice areas;
Adverse/Bad Credit, Contractor (including IT and CIS), Self-employed, Help to buy/Shared ownership and Right to Buy.
Buy to Let; Portfolio, First Time Buyers/Landlords, Low Deposit, Limited Company and Low to No
Spellman Financial Services
Get in touch!
If you need an Expert Mortgage Brokers in Coventry or Warwickshire. Please complete the below contact form and we will get in touch within one working day.
The information provided will only be used to contact you and will not be held for marketing purposes.
Address & Telephone
102 Stoney Road, Coventry, West Midlands, CV3 6HY
Monday-Friday: 08:00 – 20:00
Saturday: 08:00 – 14:00
Sunday: By appointment
Other times: can be arranged by appointment
Your home may be repossessed if you do not keep up repayments on your Mortgage.