First Time Buyers

Buying your first home is an exciting prospect. The thought of cancelling the direct debit payment to your landlord, and moving into a home of your own, is a long-term goal for most young people. Sadly, such urgency to purchase a home often leads to rash decision making. For speed, many first-time buyers visit the first local bank in sight to arrange a mortgage. This is a costly mistake for many borrowers. There are hundreds of lenders in the United Kingdom – all of which offer different mortgage products to different consumers. Therefore, the chance that you will be advised the most suitable mortgage product, at the cheapest possible interest rate, by randomly selecting a lender, is unlikely. Unfortunately, many borrowers realise this fact too late in life. One of the more prevalent assumptions made by first time buyers is that their existing bank will provide the best mortgage products because of their loyalty. To their surprise, the opposite is often true. Some mortgage advisers, including Boon Brokers, enjoy access to exclusive mortgage products that would not be offered directly to the consumer. This is because lenders understand that they need to compete with other lenders to attract the attention of our advisers.

Ideally, you should seek mortgage advice and arrangement from an independent broker with whole-of-market access. A whole-of-market broker can display sourcing system results that illustrate the most suitable lender, compared with many others, for your purchase. Therefore, you can see for yourself if their recommendation is the best option. An important consideration for first-time buyers is cost. Even though you may not be liable to stamp duty, up to a purchase price of £300,000, there are other costs to be aware of. Legal fees, a booking and valuation fee are just a few that may apply. In the current market, it is accepted as the norm that mortgage brokers charge a client fee. According to the government’s money advice service, the average mortgage broker fee is £500. Boon Brokers think differently to most advisers in the industry. We understand that our clients bare many costs when selling and/or purchasing a home. Therefore, we refuse to charge a client fee for mortgage or insurance advice and arrangement. You may ask: How do you earn an income? The answer is simple. All mortgage brokers, including those who charge an additional client fee, receive a procuration fee. This is often a percentage of the loan sum arranged. It is paid by whichever lender is most suitable for your mortgage. We are satisfied with this procuration fee payment for our services. Regardless of the loan sum, we will not charge a client fee for mortgage or insurance advice and arrangement. Be wary when visiting estate agents and other mortgage brokers – a client fee is often attached.

Lastly, we advise that you select a broker that can constantly review your mortgage options. This is because your mortgage product will require renewal throughout its term. Our advisers will notify you as soon as a more suitable mortgage product becomes available in the UK market. When you become a client, we will service your mortgage and insurance requirements for life.

If you proceed with our services, you will receive a free consultation. Home consultations are provided in Norfolk and Suffolk. If you enquire from a different area of the UK, consultations can occur over phone and e-mail correspondence. For first-time buyers, the consultation will consist of discussing your borrowing potential, the mortgage process and showcasing likely mortgage costings. You will also be informed of any housing scheme that me be appropriate such as: Help to Buy scheme, Shared Ownership and Shared Equity. For further details, please visit the ‘Our Process’ page of this website.

This article is intended to provide a general understanding of the topic. The contents should not be treated as advice. For personalised advice, please submit an enquiry. Your home may be repossessed if you do not maintain repayments on your mortgage.

For more information please get in touch and we will be happy to assist you.