First Time Buyer Mortgage Advice in Sunderland

Once you make the leap of faith and decide to start looking for your first home, it can be difficult to know where to start. Buying property in any mortgage situation can be stressful, especially if it is your first time.

Some home movers might be starting your home buying journey for a second time. Whereas local landlords has hopes of growing their buy to let portfolio. In terms of self employed applicants struggling to match a deal that suits their working life and financial situation. Maybe your situation is completely different, but you are all in the same boat.

Everyone’s home buying journey is different, and for some, it is going to be a challenge. As a first time buyer in Sunderland, you will be unaware of all the things that come with buying a home. More specifically, some people do not know how much deposit they need to deposit to purchase a property in Sunderland. 

How much deposit do I need for a first time buyer mortgage in Sunderland?

When purchasing a first time buyer mortgage, you will need to provide a deposit. The amount of the deposit you put down will vary from applicant to applicant in terms of financial situation, income and credit ratings, and the property you want. All of this will affect how much your monthly outings will be and the maximum amount you can borrow.

A deposit is one of the forms of evidence that a lender needs to know that you can cover the costs of the mortgage. Deposits are based on a percentage of the price of the property. The minimum percentage you need may change depending on the distinct factors and what mortgage you are looking to take out.

If you have a clean credit history and your lenders find you a “reliable” applicant, you may only need to provide at least a 5% deposit. In turn, if your credit score is poor and you do not look like a “reliable” applicant, you may need to deposit a deposit of more than 5%. We always recommend you save up for a 10% or 15% deposit.

Of course, the total amount of the deposit may vary from property to property; when the property price rises, the deposit will naturally too. A 5% deposit on a £150,000 property would be vastly different from a deposit on a home valued at £360,000.

Can I put down a bigger deposit?

If you deposit a larger deposit above the required minimum amount, your chances of being accepted may increase slightly, or you will be open to better mortgage deals. Therefore, if you find your dream home and you have more than a 5% deposit, we recommend you put down more.

As a mortgage broker in Sunderland, when we see applicants depositing a larger deposit, it is usually because of a gifted deposit that gives them a boost. A gifted deposit is simply a family member or friend who gives the applicant funds to make up for their mortgage deposit. If you are at the 5% mark and then you receive a gifted deposit, you could have a deposit around the 10-15% mark, which can only benefit your application. 

Are there ways to help me get my deposit?

If you have trouble making your deposit as a first time buyer in Sunderland, there are several ways to help you get there. The government has created new ways to help first time buyers like yourselves get onto the property ladder.

Navigating towards the ‘Own Your Home’ website has a list of different schemes that can help you start your home buying journey. The schemes helped pump confidence back into the market, meaning that buyers could comfortably start their home buying process again. Just to name a few of these schemes include: 

  • Shared Ownership
  • Mortgage Guarantee Scheme
  • Lifetime ISA
  • Right to Buy
  • First Home Scheme

Our mortgage advisors in Sundelrand specialise in help to buy mortgage advice in Sunderland as well as other mortgage schemes. For more information on these schemes and help to see whether you qualify for them, get in touch, and book your free mortgage appointment to speak to a member of the team today. 

Do I need a mortgage deposit?

There are only a few situations where you do not need a mortgage deposit. One example would be if you have a family discount on the property or a gifted deposit that covers the entire deposit. Another example would be if you were a council house tenant who is looking to utilise the right to buy in Sunderland and buy your home and the discount provided by the government covered the deposit. 

In summary, a deposit is required in most situations. A deposit is not only a good piece of proof that you can afford a mortgage but shows that you are reliable and have saved overtime to get to your target amount. 

How our Mortgage Advisors in Sunderland can Help You

As a first time buyer in Sunderland, you’re likely going to need a minimum 5% deposit. Keep in mind, however, that this may change depending on various factors such as your credit score and evidence documents such as bank statements.

If you are looking for a first time buyer mortgage advice in Sunderland, feel free to get in touch with us, by booking your free mortgage appointment today. We are an experienced mortgage broker in Sunderland who has been working in the mortgage industry for more than 20 years.

Date Last Edited: 13/01/2023