First Time Buyer Mortgage Advice in Essex

I’ve helped many people put the steps in motion to get them through their own front door for the very first time, to break away from renting or living with friends and family and to have their own sanctuary where they can live and do as they please.

It may not be what you think it is or perhaps you had no idea that you would have an issue and now feel frustrated and need some answers.

With my ten years of experience we can help you to recognise the hurdles and most importantly – to overcome them.

I will help you to get the best rates for your circumstances, to chose the type and length of mortgage that best meets your needs, and make the process simple and straightforward for you. You can be confident and relax in your usual daily routines whilst I act on your behalf completing all the paperwork, discussing your application with the lender, keeping you updated and informed on when your valuation is booked in and how things are progressing and giving you the support you need to answer your questions all the way through the process.

This is a personal journey we will go on together to get to know your situation and provide tailored advice that relates to your specific circumstances. Together we will put together a mortgage package that works to get you into the home and takes into account your future plans so you can keep moving forwards, making the most of your investment and your home.

This is one of our most common questions that people ask and there are numerous calculators that you can use to give you an indication. Some advisers may tell you that you can borrow 4.5 times your annual salary or perhaps they will tell you about a new scheme offering 5 or 6 times your annual salary. This can help give you a rough guideline but….

What you can ACTUALLY borrow is based on affordability – the size of your household, the debts you might have and the income you are paid each month.

And lenders all use different figures in these calculations so each lenders figure of what they can lend you is very different.

If something is worth doing it’s worth doing right: This is why we recommend speaking to us for your personalised figure. If you look at a basic calculator you could be overestimating your figures and offer on a home that is to far out of reach which would be hugely disappointing. OR worse you could be underestimating and thinking that its not possible for you to buy at all, when it fact you could.

There are many schemes now to help people access the property ladder with smaller deposits, but your deposit determines your rate for your mortgage and how much your monthly repayment will be.

If you have 5% (or less) as a deposit you will be paying a higher rate than someone with a 40% deposit.

Deposits impact your rates in 5% brackets. So a 12% deposit would be giving access to the same rate as a 10% deposit. 15% of the purchase price as a deposit gives you access to the next set of rates.

If you have had recent poor credit you will be considered a little more of a risk to lend to, and in this case to help balance this, a larger deposit may be required.

There are schemes for those renting that allow you a mortgage with no deposit providing the new mortgage payment will be no more than 120% of your current rent payment, and you can show good credit history and at least 12 months rent payments at that level.

One lender has launched a £5000 deposit scheme, allowing purchases of homes up to £500,000 providing you are able to provide the £5000 deposit.

The shared ownership scheme is a long standing government backed scheme helping people to buy their own homes and deposits are calculated on a percentage of the share you are buying. So 5% of a 25% share of the home can be much more affordable to get you on the property ladder.

But all of this still returns to affordability. Ultimately the deposit needed may be a minimum of 5% as an example, but if your income and expenses allows for a specific amount or mortgage borrowing, your deposit will need to be equal to the difference between that mortgage figure and the purchase price you plan to offer.

Before looking at houses, you need to see what the lenders see. We recommend checking your report across all three main agencies (Experian, Equifax, and TransUnion) to ensure there are no surprises.

Click here for a 30 day free trial from a third-party company. If you have concerns about your history, don't worry, we specialise in finding solutions for those with less than perfect credit.

Your deposit is the foundation of your first home purchase, but its origin is just as important as the amount. Whether you have built your savings through a Lifetime ISA, personal monthly contributions, or are receiving a helping hand from the "Bank of Mum and Dad," we need to document the source clearly for the lender. 

If your parents or family members are providing a gifted deposit, we will guide them through the necessary legal paperwork and gift letters required by solicitors. We also specialise in low deposit options, including the £5,000 deposit scheme and 95% mortgages, to help you get onto the ladder sooner.

One of the most common pitfalls for first time buyers is focusing solely on the deposit and forgetting the secondary costs of a property transaction. When we help you plan your move, we ensure you have set aside sufficient funds for professional survey fees to check the building's condition and solicitor fees for the legal conveyancing process. 

We will also help you navigate the current Stamp Duty thresholds for first time buyers in Essex and discuss the essential costs of buildings and life insurance, ensuring you are fully protected from the moment you pick up your keys.

Lenders calculate your borrowing limit based on "affordability" rather than a simple salary multiple. They will analyse your student loan repayments, car finance, and general monthly outgoings to determine how much you can comfortably manage. 

While standard banks often cap borrowing at four and a half times your income, we have access to specialist lenders who offer enhanced multiples for professionals or specific first time buyer schemes that can significantly increase your budget. Obtaining a Decision in Principle through us before you visit estate agents will give you the confidence to make a serious offer.

Once your budget is confirmed and your financial foundations are in place, you can begin the exciting journey of viewing homes. With deep roots in the Essex property market, we understand the local landscape in areas like Chelmsford, Brentwood, and Romford. 

When you find a property that feels like home, we recommend contacting us before you submit your offer. We can provide a final review of the figures and offer a strategy to help ensure your bid stands out to the seller, moving you one step closer to your very first front door.

Mr L came to me looking for help to buy his first place, as a single person buying in and around the M25 and London, his wasn’t an easy situation even though he earns well and is progressing in his chosen career.

As an employee of an airline his pay slips are complicated enough that when he spoke to other advisers they were struggling to get him the lending amount he needed to buy in his area.

With my experience and understanding of the industry (and the pay slips!) I was able to help his secure a mortgage that was almost £40,000 more than other advisers had suggested he could borrow.

Whilst initially he was skeptical that it could be done, his mortgage offer was issued within 3 weeks and he moved in to his first home a couple of months after that.

It was a pleasure to be able to help him to achieve that step of buying his first house!

With prices for a new home starting at £400,000 in their area Mr and Mrs B were struggling to save the 5% deposit needed whilst paying rent. 

£20,000 would have taken them so long to save that each time they got close to the required amount the house prices increased as did the deposit they needed.

Using the current £5000 deposit mortgage allowed them to move forward now, and they had called initially just for some advice as to how to move forwards as the deposit they needed just kept growing.

After some delays in the chain and some backwards and forwards with solicitors, they are now the proud owners of their first home, something they had thought would be years away.