What credit score do I need to get a mortgage as a first time buyer in Cambridge?

Credit score requirements vary between lenders, but having a strong score typically improves your chances of approval. A good credit score indicates financial responsibility, such as paying bills on time and managing debt well. Some lenders specialise in working with applicants who have lower scores or minimal credit history, often requiring higher deposits to offset their perceived risk. Reviewing your credit file for any errors or outdated information is a vital first step. If your score needs improvement, steps such as paying down debt, avoiding new credit applications, and maintaining a low credit utilisation rate can help. A mortgage broker in Cambridge like ourselves can identify lenders most suitable to your circumstances, regardless of your credit profile.

Can I buy a property with a low deposit as a first time buyer in Cambridge?

Yes, low deposit options are available, particularly for first time buyers. Schemes like 95% loan-to-value (LTV) mortgages allow you to purchase with just 5% of the property’s value upfront. For example, if a property costs £600,000, a 5% deposit would amount to £30,000. While accessible, these mortgages often come with higher interest rates and stricter lending criteria. Some government-backed schemes, such as shared ownership or help-to-buy alternatives, also cater to low deposit buyers. Our mortgage advisor in Cambridge can guide you through available options and help you determine the most cost-effective solution to get onto the property ladder.

Are there any government schemes to help first time buyers in Cambridge?

Although the traditional Help to Buy scheme has ended, several alternatives remain available. Shared ownership allows you to buy a share of a property, usually between 25% and 75%, and pay rent on the rest. This reduces upfront costs and ongoing expenses. Right to Buy offers discounted homeownership for eligible council tenants. Other initiatives, such as the First Homes scheme, are designed to help key workers and local residents purchase homes at discounted prices. These programmes have specific eligibility criteria, so it’s essential to understand the requirements. By working with our mortgage advisors in Cambridge, you can explore these schemes and determine which suits your needs.

How can I improve my chances of getting a mortgage in Cambridge?

Several steps can help you strengthen your mortgage application. Aaving for a larger deposit demonstrates financial stability and reduces the lender’s risk. Aim to reduce any outstanding debts, as lower liabilities improve your affordability assessment. Regularly checking your credit score and addressing any issues, such as incorrect entries, is also important. Maintaining stable employment with a consistent income stream reassures lenders about your ability to meet repayments. Obtaining professional mortgage advice in Cambridge ensures you’re aware of lender-specific criteria and receive guidance on presenting your application in the most suitable light.

Can I include a family member as a guarantor for my mortgage?

Yes, a guarantor mortgage is an option if you need additional support to secure a loan. This involves a family member, often a parent, providing financial backing for your mortgage. The guarantor’s assets, such as savings or property equity, may be used as collateral, reducing the lender’s risk. This arrangement can help if you have a smaller deposit or limited income. It’s important to note that guarantors are legally responsible for repayments if you default, so this decision should be considered carefully. A mortgage broker in Cambridge like ourselves can explain the implications and recommend lenders that offer guarantor products.

What is an Agreement in Principle, and why do I need one?

An Agreement in Principle (AIP) is a document issued by a lender stating how much they might lend you based on an initial assessment of your finances. While not a formal mortgage offer, it’s a valuable tool for first time buyers in Cambridge. It demonstrates your buying power to estate agents and sellers, increasing the likelihood of having your offer accepted. An AIP also provides clarity on your budget, ensuring you only view properties within your price range. A mortgage advisor in Cambridge like ourselves can assist in securing an AIP, often within 24 hours of an initial consultation.

Can I buy a property as a first time buyer in Cambridge if I’m self-employed?

Yes, self-employed buyers can secure a mortgage, though the process can be more complex. You’ll typically need at least one to two years of tax returns or accounts, along with evidence of regular income. Lenders may assess your average earnings over a specific period and consider any retained profits if you operate as a limited company. While some mainstream lenders are cautious about self-employed applicants, many specialise in this area. A mortgage broker in Cambridge like ourselves can connect you with lenders who understand self-employment dynamics and tailor products to meet your needs.

What additional costs should I prepare for when buying a home in Cambridge?

Beyond your deposit, several other expenses can arise during the home-buying process. These include solicitor fees for legal work, survey costs to assess the property’s condition, and mortgage arrangement fees. Additionally, you may need to pay for removals, home insurance, and initial utility connections. While it’s tempting to focus solely on the deposit, these additional costs can add up. Budgeting in advance helps ensure a smoother buying process. A mortgage broker in Cambridge like ourselves can provide a detailed breakdown of these expenses, helping you prepare adequately.

Can I still get a mortgage if I have bad credit?

Although bad credit can pose challenges, it doesn’t necessarily disqualify you from securing a mortgage. Specialist lenders offer products tailored to applicants with issues such as missed payments, defaults, or County Court Judgments (CCJs). These lenders typically require higher deposits or charge higher interest rates to offset the perceived risk. Improving your credit score before applying is advisable, but if that’s not feasible, seeking mortgage advice in Cambridge can help you find a lender suited to your circumstances. A mortgage broker like oursevles will guide you through the process and identify the most suitable options available.

Should I choose a fixed or variable rate mortgage as a first time buyer in Cambridge?

The decision between fixed and variable rates depends on your financial goals. Fixed-rate mortgages offer stability, with consistent monthly payments over an agreed term, making it easier to budget. In contrast, variable rates may start lower but can fluctuate based on market conditions, potentially leading to savings or higher costs. If you prefer financial certainty, a fixed rate may be ideal. If you’re comfortable with some risk and want the chance to benefit from lower initial rates, a variable rate could suit you. Our mortgage advisor in Cambridge can assess your preferences and recommend the most suitable option.

First Time Buyer Mortgages in Cambridge

Can I get a mortgage as a first time buyer in Cambridge?

Becoming a first time buyer in Cambridge can feel overwhelming, but it is an achievable goal for many.

Lenders will evaluate several factors to determine your eligibility, such as your income, outgoings, and credit history.

Having stable employment and a good track record of managing credit can strengthen your chances of approval.

Additionally, lenders will want to see that you have sufficient funds for a deposit and other costs associated with purchasing a home.

Speaking with a mortgage broker in Cambridge like ourselves can help clarify what lenders may expect in your unique circumstances, providing guidance to help you secure the right mortgage deal.

First Time Buyer Mortgage Advice in Cambridge

How much deposit do I need as a first time buyer in Cambridge?

The amount of deposit required depends on the property’s value and the lender’s criteria.

Generally, first time buyers in Cambridge will need at least 5% of the purchase price, though higher deposits can open the door to better rates.

For example, a £600,000 home would require a minimum £30,000 deposit at 5%. Saving for this amount can take time, but schemes like shared ownership or gifted deposits from family members can help bridge the gap.

Getting tailored mortgage advice in Cambridge is a good way to understand your options and determine the best approach to meet your deposit goal.

How much can I borrow as a first time buyer mortgage in Cambridge?

The amount you will need comes down to your credit score. Through our experience providing expert mortgage advice in Cambridge, it’s likely that the majority of First Time Buyer will have a good credit score. By having this, it can be possible that you have access to better mortgage rates that could allow you to put down a smaller deposit like 5%.

In the case where you are a first time buyer but you have a low credit score, you will be restricted to rates that are much lower and will require you to put down a much larger deposit like 10-15%.

Another factor that can impact the deposit amount will also be the type of property you’re looking to buy. The higher in value the property is the more you will have to put down as an initial deposit.

Speak to an Advisor

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The fee is up to 1% but a typical fee is £495.

FAQs From First Time Buyers in Cambridge

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Our Simple Mortgage Process

Free Initial Mortgage Appointment

It’s important to discuss your financial situation and mortgage goals with a knowledgeable and transparent mortgage advisor in Cambridge. During your free initial mortgage appointment, the advisor will take into account your income and expenses to calculate the maximum amount you can borrow as a first time buyer in Cambridge.

Cambridgemoneyman’s team of mortgage advisors is committed to providing personalised and comprehensive support to first time buyers in Cambridge.

Contact us to schedule your free initial mortgage appointment and take the first step towards realising your dream of homeownership.

We Can Search 1000’s of Mortgage Deals

At Cambridgemoneyman, our team can search through thousands of first time buyer mortgage options to find the perfect one for you.

We understand that time is of the essence when it comes to purchasing a home, which is why we strive to obtain a mortgage agreement in principle within 24 hours of your free initial appointment.

Having a mortgage agreement in principle can be a valuable tool as you move forward with making offers on properties in Cambridge. It demonstrates to sellers that you are a serious and credible buyer, giving you a competitive edge in the market.

Submit Your Mortgage Application

Once your offer on a property has been accepted, your designated mortgage advisor in Cambridge will submit your complete mortgage application and accompanying documentation to the lender.

Throughout the mortgage process, your case manager will keep you updated and informed every step of the way, from submission to receiving your mortgage offer and completing your purchase.

You can trust us to provide a seamless and stress-free experience, as we work diligently to ensure a smooth and successful outcome for all of our clients.

Protecting You and Your Mortgage

We go beyond the mortgage! Along with finding you the most suitable first deal, we will also recommend the most appropriate insurance to financially protect you and your loved ones.

Getting protection when obtaining a mortgage can help provide financial security in case of unexpected events such as death, disability, or job loss.

It can help cover mortgage payments, ensuring that the borrower’s family is not left with the financial burden of paying off the mortgage.

Reasons to Choose Us

Free Initial Mortgage Appointment

Contact our team to get yourself booked for your free initial mortgage appointment with one of our expert advisors today. All our new/existing customers are offered a free initial mortgage appointment that can be carried out on the telephone or through a Microsoft Teams video call.

Our team strive in making the mortgage process as smooth and straightforward as possible. Through the full process, your allocated case handler will keep you up to date explaining everything that is going on keeping technical jargon to a minimum.

1000s of Deals

As a First Time Buyer in Cambridge, it’s important that the deal you are on is the one that is appropriate for your circumstance. That is why our team search through 1000s of mortgage deals to find the most suitable one for you. Supporting you through the process us important to us as it’s not just about finding the right mortgage for you, it’s about the journey towards that goal.

Our Service

We understand obtaining a mortgage isn’t always straightforward so our team are available to answer any queries you may have. Our team always provide a tailor-like service to you, our customer, so we can help you with your personal and financial situation.

With rich knowledge and extensive experience, our Mortgage Advisors in Cambridge have a reputation of successfully helping a lot of first time buyers fulfil their home owning dreams by kickstarting their mortgage journey.

7 days a Week

Here at Cambridgemoneyman, we understand that everyone’s day to day lives are different which is why our team of expert mortgage advisor in Cambridge are available 7 days a week, from early until late at night so you can get in touch with us when you are free to do so.