First time buyers make up a vital sector in the housing market, however from out experience CIS Subcontractors who are also First Time Buyers struggle the most to find the right mortgage for their circumstances. This is often because mortgage lenders do not accept gross earnings paid for the CIS Scheme as a valid income for mortgage lending purposes.
CISMortgage Advice helps sub contractors to successfully take their first step onto the property ladder, and our expert mortgage advisers will be able to guide you through what can, at first, seem to be a daunting process – and help you get the maximum loan possible.
Here’s a few hints to set you up for success.
As a first-time buyer (or owner of a single property) you could be eligible for help under the Government’s Help to Buy Scheme, which also runs in Scotland.
It boosts what you can afford, as the government lends you up to 20% (40% in London) of the cost of a newly-built home. So you only need a 5% cash deposit, and a mortgage to cover the outstanding 75% of the purchase price.
There are conditions around the loan, but it can be very beneficial.
Types of mortgage
When you consider what type of mortgage you want, think ahead.
A variable rate mortgage can appear cheap today, but interest rates can increase, and even a small rise could impact your monthly budget significantly.
Make yourself attractive to lenders by showing that you have kept up-to-date with payments on all your credit or store cards and any other borrowings. You can check your credit report for free using Experian, or one of the other similar agencies.
If you do have any bad credit, don’t worry, but do tell our mortgage advisor immediately, no matter how minor you think it is.
Save for a deposit. Use an ISA to get the annual tax benefits from qualifying exemption on the interest.
Remember to budget for ‘hidden’ costs too, such as legal fees, building insurance, surveyor’s fees (although in Scotland, it is the seller who has to prepare a Homebuyer’s survey) and removal costs.
After the recent budget, few first time buyers in England and Wales still have to consider Stamp Duty (or Land and Buildings Transaction Tax as it’s known in Scotland, or Land Transaction Tax in Wales) – but we’ll keep you straight.
And of course, don’t forget to factor in furnishings for your new home!