Buying your first home? Warwickshire expert reveals what you need to know
Alex Sharp of GAM Home Loan Specialists tells readers all they need to know about buying their first home.
Taking your first step onto the property ladder is incredibly exciting - but it can also feel a bit overwhelming.
With so many decisions to make and unfamiliar terms being thrown around, it's easy to get lost in the process.
That's where a mortgage adviser can really help.
At GAM HLS, we specialise in helping first-time buyers make sense of the mortgage process, so here's our quick guide to get you started.
1. Understand What You Can Afford
Before looking at properties, it's important to understand how much you can borrow - and just as importantly, how much you can comfortably afford each month.
Mortgage lenders will look at your income, outgoings, and credit history to assess what they're willing to offer.
But affordability isn't just about what a lender says - you need to think about your lifestyle, bills, and future plans too.
This has been highlighted over the last two years when mortgage rates jumped briefly up to six per cent.
We can help you work out a realistic budget, and even get you a mortgage in principle - a document that shows estate agents and sellers you're a serious buyer.
2. Get to Know the Costs
Your deposit is just one piece of the puzzle.
There are other costs involved in buying your first home, including:
- Stamp Duty
- Solicitor's fees
- Valuation and survey fees
- Mortgage arrangement fees
- Moving costs
We'll explain all these so there are no surprises down the line.
3. Know Your Mortgage Options
There are lots of different types of mortgages - fixed rate, tracker, variable - and it's not always easy to know which is best.
We'll talk through the pros and cons of each, and match you with the most suitable deal based on your needs.
We're not tied to a single lender, so we can search a wide range of mortgage products, including some that aren't available directly to the public.
4. Explore Low-Deposit and No-Deposit Mortgage Options
Saving for a deposit is often the biggest hurdle for first-time buyers. The good news is that lenders are increasingly offering products to help overcome this challenge.
Many lenders now offer 95% loan-to-value (LTV) mortgages, meaning you only need a five per cent deposit.
These low-deposit options are more accessible than ever, providing a viable path for those struggling to save large sums.
Additionally, some lenders like Skipton are offering their Track Record Mortgage which allows renters to transition into homeownership without a deposit, provided they can demonstrate a consistent rental payment history.
They have also recently released their Delayed Start Mortgage which offers first-time buyers the option to defer their mortgage repayments for the first three months after completion due to the high initial costs associated with purchasing a property.
However, it's essential to understand that while these options can make homeownership more attainable, they may come with higher interest rates and stricter eligibility criteria. Consulting with a mortgage adviser can help you navigate these choices and determine the best fit for your financial situation.
5. Get Expert Advice—From Start to Finish
The mortgage market can be confusing, especially if you've never bought a property before.
That's why working with an experienced adviser makes all the difference. We'll guide you through the whole journey—from your first enquiry to picking up the keys.
And because we're fully regulated by the FCA, you'll have peace of mind knowing that you're in safe hands.
Top Tips from Our Mortgage Experts
Before you go, here are a few bonus tips from our team that could save you time, money, and stress:
- Check your credit score early – and fix any issues before applying. Even small changes can make a big difference to the deals available.
- Avoid taking out new credit (like a car loan or credit card) just before applying—it could affect your affordability.
- Keep paperwork handy – you'll need ID, proof of address, payslips, bank statements, and possibly more.
- Ask questions – no question is too small. This is one of the biggest financial decisions you'll ever make, and you deserve to understand every step.
- Start early – speaking to a mortgage adviser before you fall in love with a property can help you avoid disappointment later.
Your home may be repossessed if you do not keep up repayments on your mortgage.
GAM HLS sponsors Warwick Nub News' Property Section
Without community-minded partners like them we would not be able to produce dedicated, clickbait-free news to the people of Warwick.
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