Frequently Asked Questions

How do I go about buying my first property

Buying your first property and choosing the right mortgage can be rather daunting, so contact us and we’ll advise you on the mortgage options available to you.

But in the meantime, we hope you find the following information useful.

The amount of mortgage you can get depends on several factors:

Traditional methods of calculating loan amounts use income multiples to determine how much you could borrow. However, many lenders have now switched to an affordability model which generally means it is now possible to obtain higher loan amounts for any given income.

Unfortunately, it is now more complicated to determine how much you can borrow as each lender uses slightly different criteria. This is why you need to consult our experts early in the process to ensure you maximize your buying power.

Some lenders offer very good deals for first time buyers, where for example there is more flexibility, and no deposit required.

It is also worth remembering the additional costs, on top of your deposit and mortgage that you will be expected to pay.

Stamp duty the amount you have to pay depends on the property purchase price the current rates are as follows:

• Value up to £125000 nil
• Between £125,001 & £250,000 1% of the purchase price
• Between £250001 & £500000 3% of the purchase price
• Over £500000 4% of the purchase price.
  

You will also have to pay for the survey or valuation of the property, plus solicitor’s fees.

You may also have to pay an arrangement fee for the mortgage and a Higher Lending Charge - which is insurance for the lender for you defaulting on your payments when your property is worth less than the loan.

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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

We offer all our clients a free initial consultation after which a non refundable commitment fee of £95 will be charged with a further £250 payable on completion based on individual client circumstances. We also offer a fee only option whereby we charge a 2% broker fee on the amount borrowed and any commission derived from the lender is rebated back to the client.

The overall cost for comparison is 7.9% APR

Riverside Mortgages Ltd is registered in England and Wales. Registration Number: 5978086