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Mortgage Broker FAQs

• What is a first-time buyer mortgage?

  First time buyer mortgages are for people who are new to the housing market. These types of mortgages typically have lower interest rates and are more flexible terms than other types of mortgages.

  Generally, you are considered a first time buyer if you’re buying a property you plan to live in as your main residence and you’ve never owned a property before.

• What are the benefits of a first time buyer mortgage

  There are a number of benefits for a first time buyer, including:

  Lower interest rates: First-time buyer mortgages typically have lower interest rates than other types of mortgages. This can save you money on your monthly payments.
  More flexible terms: First-time buyer mortgages often have more flexible terms than other types of mortgages. For example, you may be able to choose a shorter term or a lower deposit.
  Government schemes: There are a number of government schemes available to help first-time buyers, such as the help to buy scheme or the save to buy scheme.

  Your GHL Direct mortgage advisor can guide you through the entire process and search first time buyer mortgage deals on your behalf.

• Do I qualify for a first time buyer mortgage?

  To be eligible for a mortgage as a first-time buyer, you will typically need to meet the following criteria:

  Be a first-time buyer: You must not have owned a property in the past.
  Be a UK resident: You must be a UK resident and have a permanent UK address.
  Have a good credit history: You must have a good credit history and be able to demonstrate that you can manage your finances responsibly.
  Have a deposit: You will need to have a deposit of at least 5% of the purchase price of the property.

• What questions should I ask my mortgage advisor?

  Here are some questions you can ask your mortgage adviser:

  – How much can I borrow?
  – What type of mortgage is best for me?
  – What are the interest rates and fees?
  – What are the monthly repayments?
  – What happens if I can’t afford to make my repayments?
  – What are the pros and cons of different mortgage products?

• What are the different types of mortgages?

  There are a number of different types of mortgages available, including:

  Fixed-rate mortgages: With a fixed-rate mortgage, your interest rate will stay the same for the entire term of the mortgage. This can provide peace of mind, as you know exactly what your monthly payments will be. However, if interest rates rise, you will not benefit from the lower rates.

  Variable-rate mortgages: With a variable-rate mortgage, your interest rate will fluctuate based on the Bank of England base rate. This means that your monthly payments may go up or down, depending on the market. However, if interest rates fall, you will benefit from the lower rates.

  Tracker mortgages: A tracker mortgage is a type of variable-rate mortgage that tracks the Bank of England base rate. This means that your interest rate will always be a certain percentage above the base rate.

  Discounted mortgages: A discounted mortgage is a type of variable-rate mortgage that is offered at a discount to the lender’s standard variable rate (SVR). This means that your interest rate will be lower than the SVR, but it may still fluctuate.

  First time buyer scheme:  Help to Buy: Equity Loan | Shared ownership | The Mortgage Guarantee Scheme

• How much does a mortgage advisor charge?

  The initial meeting with a GHL Direct mortgage advisor to discuss your needs is always at our advisor’s expense and without any obligation. Our mortgage advisors may charge based on the complexity of each case.

  Some mortgage brokers charge an up-front flat fee between £195 and £499, while others take commission from the lender or bank providing the loan. All of this will be explained to you by your mortgage advisor at the start of the meeting.