Are You A First Time Buyer?

• What is a mortgage? 

A mortgage is a loan from a Bank or Building Society in the UK. This loan will be for the purpose of buying a house. The house will then have a Lien against it for the amount of money you borrow. A Lien, is an official record of who owns the house, as the Bank provided the majority of the moeny they do. But because you borrowed the money and have the Deeds in your name you still have the responsibility, and the right to live in and or sell that house in order to payback the   mortgage.

A Mortgage get Interest paid on it. This is the profit margin for the bank or building society. This is agreed with you in the beginning of the process and you are told how much the mortgage will cost per month and how much in total you have to payback to the bank, and when.

• How much do you need to get onto the housing ladder?

The amount of deposit you need will vary depending on the type of mortgage you want. In general you will need a minimum of a 5% deposit for a family home and a 25% deposit for a property that you want to let out.

Sometime 0% deposit mortgages are available.

• What will it cost

That will depend on several factors.

• The amount of deposit you put down on the house
• The amount that you need to borrow
• The length of time you want to borrow for
• The interest rate that you have to pay each month
• If you take a 2 year fixed or a 5 year fixed

These are all very relevant questions and they vary person to person. 

Zoom Mortgage Specialises in helping First-Time buyers get onto the property ladder. 

We have several types of mortgages designed especially for you as a First-Time Buyer. We can assist with these and guide you along the way.

You can also use a close family member to help you with your mortgage. They can provide deposit, income, or equity to help you.

To understand better what your options are call 0800 310 1210

FIRST TIME BUYER / FAMILY SUPPORT

When your purchasing the first property, we understand that you will want the process to be as easy as it can.

We've helped many first time buyers into their own home. Though our award winning Family Mortgage, we offer a variety of security options so your family can help you onto the property ladder

We are built on helping borrowers make the most of their circumstances using a more personal approach, particularly across family generations. 

FAMILY MORTGAGE

With our Family Mortgages for First Time Buyers (FTBs) you can:

borrow up to 95% LTV on the first property with our 5 year fixed rate.

include family members' savings and/or property as security

include family members' savings as security in an offset account to reduce the amount of the mortgage on which interest is charged

For peace of mind six months unemployment cover from mortgage completion, subject to terms and conditions.

We appreciate some FTB clients may not require additional family support for their mortgage, and for those we offer a variety of fixed and variable rate mortgages with a maximum 90% LTV. 

JOINT MORTGAGE SOLE OWNER (JMSO)

Our JMSO arrangement is designed to enable family members to help support each other with affordability when applying for a mortgage. One or two owners, plus up to two family members, can join the mortgage to support the borrower.

This arrangement enables:

borrowers to call upon support of their family members

adult children to support their parents if their circumstances were to change

The maximum LTV is 80% for owner occupier and 65% for Buy to Let.

GUARANTOR MORTGAGES

We allow guarantor mortgages on any of our owner occupier products, enabling us to consider parents’ or family members’ income to help with affordability on applications.

If the parent or family member already has a mortgage or other credit commitments, these will be taken into consideration when calculating the affordability. The guarantor must be able to prove that they can cover the guaranteed amount of the mortgage loan, as well as their own existing commitments.

The mortgages are considered subject to full underwriting and meeting our lending criteria.

THE DIFFERENCE BETWEEN JMSO AND GUARANTOR MORTGAGES

Both of these mortgages are available to borrowers whose income falls short of fully supporting the mortgage amount but have a realistic prospect of income rises in future. In the case of JMSO, exception to this is given for older borrowers being supported by children’s income. Both JMSO and Guarantor mortgages are not available where the borrower has little or no income of their own.

Affordability is calculated differently for both mortgages:

Guarantor mortgages - borrowing is assessed using the guarantor’s income only. The monthly payment of any outstanding mortgage is deducted from the guarantor’s income in the same way as a personal loan or credit card.

JMSO arrangement – this is calculated over two steps. Step 1 – the non-occupiers net monthly income is calculated using our standard affordability test. Step 2 - we undertake an affordability test on the occupier’s loan amount on a joint basis using the occupier’s income and the non-occupiers income remaining after step 1.

Get in touch if you have questions 0800 310 1210