First Time Buyer Mortgage | FAQ | Mortgages NI
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0330 0430327

First Time Buyer FAQ

First Time Buyer FAQ

Our Mortgage Brokers have a wealth of experience when it comes to helping First Time Buyers in Northern Ireland. Below are some of the most frequently asked questions we get. We hope you get the answer you are looking for if not make an inquiry and we will do our best to assist you.

The Full Mortgage Process ?

1. Get an AIP ( Agreement in Principle ) – An AIP is a statement or certificate from your lender stating that they would be happy to lend a certain amount to you based on the information that you have supplied. The information given will also allow the lender to check your credit history and make a decision as to weather or not you are mortgageable.

It’s a good idea to get an AIP before you even look for a property as this will let you know roughly how much you will be able to borrow.

An agreement in principle can also be used to ensure an estate agent that your offer is a serious one and that you are actually able to obtain a mortgage.

Please be aware that an AIP is not a guarantee that your application will be successful. Your lender will still need to carry out a full assessment of your income and outgoings before a final decision can be made.

2. Find a Property – Once you have determined how much you can borrow it’s time to find a suitable property and make an offer. There may be some negotiating at this point depending on weather or not there are any other parties interested in the property.

3. Make a Full Mortgage Application – When your offer has been accepted you will need to make a full mortgage application. This will involve submitting supporting documentation such as proof of income, proof of id, proof of address and Bank Statements.

Your lender will assess all of your documentation and providing they are happy with all of the proofs that you have supplied your application will be moved to approved “Subject to Valuation”.

4. Instruct a valuation – All lenders will require a valuation to be carried out before issuing a final offer. This is to ensure that the property is of sound construction and is deemed by an independent third party to be worth roughly what you are paying for it.

At your request and expense a valuation can be upgraded to a Home Buyers Report or a full Building Survey which will provide a much more detailed report on the condition of the property.

5. Final offer – Once the valuation has been approved your lender will issue a final offer one copy will be sent to you and another copy will be sent to your solicitor.

6. Instruct Your Solicitor – Once instructed to begin the purchasing process your solicitor will begin to carry out searches such as proof of ownership ( making sure that the vendor has a right to sell the property ) and local authority searches etc.

7. Exchange Contracts – Once all of the relevant searches have been carried out you are ready to exchange contracts you will be required to go to your solicitors office and sign the necessary documents at this point a completion date will be agreed upon.

8. Completion – The big day has finally arrived and you are ready to move into your new home.

What is Co-Ownership

Co-Ownership is a government-backed scheme in Northern Ireland which allows you to purchase between 50% and 90% of the properties value and pay rent on the remaining share. You will need to obtain a mortgage to pay for your share of the property. You can increase your shareholding in the property at any time once you become the owner, this process is referred to as staircasing.

What’s a Mortgage Guarantor ?

A guarantor mortgage involves a third party usually a parent or close relative guaranteeing to repay the mortgage debt. This means that if you the buyer are unable to keep up with your repayments the third party will be responsible for maintaining them.

Sometimes the third party will be required to offer their property as collateral, in this case the worst case scenario could see the guarantor loose their property.

It’s important that you seek independent legal advice before entering into such a contract.

Buy to Let Mortgages for First Time Buyers!

The majority of lenders will require you to have a residential mortgage before allowing you to purchase a buy to let property however it’s not impossible. Lending criteria for such a purchase will be strict. Make an enquiry today and we will assess your circumstances, we have access to a comprehensive range of lenders and we will try our best to find one that will accept your application.