Lovell’s top tips help first-time buyers get on the property ladder

30 March 2016

House builder Lovell Homes is helping Doncaster’s potential home buyers looking to take that first step onto the property ladder by offering a range of advice and tips on securing a mortgage.
Lovell, which has a development of two and three-bedroom homes at Lincoln Gardens on South Street, is giving first-time buyers tips on everything from saving a deposit to boosting their credit rating to help improve their chances of securing a mortgage.

Beverley Johnson, sales executive at Lincoln Gardens, said: “When considering whether to buy a home for the first time, many people just think about how they are going to save for their deposit and what kind of home they want to buy.
“However buyers should be doing everything they can now, well in advance of actually buying, to ensure that they are in an ideal position to secure a mortgage. This is why we have compiled our own list of top tips with the help of independent Financial Adviser, Pete Brett at Mortgage Bureau, to help prospective homebuyers in their preparations.”

1. Getting organised
When applying for a mortgage, especially for new build properties, it’s important to be as organised as possible prior to applying. Banks will scrutinise applications now more than ever before due to the mortgage market review. Documents which lenders could usually ask for include:
- Passport
- Proof of address (dated in the last three months)
- Last three months’ payslips and bank statements
- Proof of deposit
- Latest P60 tax form (showing income and tax paid from each tax year)

2. Access to your credit file
During the process of applying for a mortgage, lenders will look at your credit file to see what loans and credit cards you have outstanding. It would be helpful to understand what exactly is showing on your credit file and there are free services such as www.noddle.co.uk.

3. Improving your credit score
Use credit – many people think this means carrying a balance on a credit card each month, which is not the case. You must prove that you can handle credit responsibly. For example, if you have a credit limit of £2000 and you only spend say £150, but pay it all back in full each month looks much better than having a credit card with a £2000 limit and the balance is £1950 and you only make the minimum payment each month.

4. Electoral roll
Ensuring you are registered on the electoral roll will increase your credit score. Lenders will use it to help verify who you are.

5. Income
Check your payslips before you apply for a mortgage. When a lender asks for your basic income, only tell them your basic income. The additional incomes all need to be broken down. Different lenders will treat each income in a different way.

6. Get a decision in principle before you even offer or reserve a property
Ensure you can get a mortgage and also take the time to understand mortgages before you reserve or offer on a property. Once you reserve or offer, things can move very quickly. On a new build property you will usually have to exchange contracts within four weeks in this time the property will be valued by a surveyor and the mortgage offered to enable the exchange of contracts.

7. Save for a deposit / Understanding your costs
Many mortgage lenders require you to have a deposit of at least 10%, and charge anyone with less than 25% of a property’s value to put down significantly higher interest rates. There are many different fees you need to consider when purchasing a property from Survey costs to Stamp Duty.

8. Cut back on spending
Lenders will ask for a lot of detail about your outgoings so it’s worth tightening up on your spending the run-up to buying your first home.

9. Check out Government schemes
Help to Buy - allows buyers to reserve a home with 5% deposit and 75% mortgage, backed up with 20% equity loan provided by the Government. You can find out more about Help to Buy: http://www.moneysupermarket.com/mortgages/hubs/first-time-buyers/help-to-buy-scheme/

To find out more about the range of homes and deals available to first-time buyers at Lincoln Gardens, buyers should visit the marketing suite open from 10am to 5pm, Thursday to Monday. Alternatively, call 01302 511 219 or visit www.lovellnewhomes.co.uk for more details.

Apartments at Lincoln Gardens are priced from £82,500 and two and three-bedroom houses start from £90,750.
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