Approachable First-Time Buyer Mortgage Advisors in Derby

Eligibility Criteria for First-Time Buyers

Embarking on buying your first home is a huge step, and it’s important to know where you stand. While each lender has its own specific set of criteria, some common factors are considered across the board. You should have a good credit history and a stable income. Most lenders in Derby will look for proof of consistent earnings, typically requiring at least three months of payslips. Being aware of your credit score beforehand can also give you an indication of where you might stand, and our team can help guide you through any improvements you might need to make.

How Much Deposit Do First-Time Buyers Need?

One of the first questions on your mind is probably about the deposit. Generally, a minimum of 5% of the property’s value is required as a deposit. For example, if you’re eyeing a property priced at £200,000, you’d need at least £10,000. However, having a larger deposit can open more doors in terms of mortgage products and potentially better rates, so it’s worth saving as much as you can. We at The Mortgage Mum are here to help you understand your options and find a solution that feels right for you.

Types of First-Time Buyer Mortgages

There are various mortgage types to consider. Fixed-rate mortgages offer the certainty of regular payments over a set period, ideal if you’re looking for consistency. Variable-rate mortgages, on the other hand, may change over time, reflecting the base rate set by your lender or other economic factors. An offset mortgage might also be worth considering, where you can link your savings to your mortgage, potentially reducing the amount of interest you pay. Our job as your local mortgage broker in Derby is to demystify these options, helping you weigh the pros and cons to suit your financial situation and preferences.