First Time Buyer Mortgages In Cambridge : Are you a first time buyer looking for a mortgage in Cambridge – or anywhere else in the UK? Then we can help find you the mortgage to match your particular, individual needs and circumstances.
Despite it being an iconic British university city, only an hour’s train ride from London, average house prices in Cambridge fell by some 4% since the middle of 2016, according to the Guardian newspaper on the 30th of January 2019.
But that still leaves the average price of a house in Cambridge at £521,370 and a flat at £327,374.
So, what are the chances of finding mortgages for first time buyers in the city? Let’s have a look what needs to be taken into account when applying for any first time buyer’s mortgage, and consider how that works in a city like Cambridge.
First time buyer mortgages
What makes the first time buyer a special case when it comes to getting a mortgage is the typically high percentage of the loan compared to the price of the home;
- mortgage lenders call this the loan to value (LTV) ratio and most of them are likely to be looking for an LTV of between 95% and 80% – for a house costing £500,000 you’d get a mortgage of between £475,000 and £400,000, or for a flat costing £325,000 a mortgage of £308,000 to £260,000;
- If you are buying a house in Cambridge – or where prices are similar – you still need to find the balance, by way of a deposit, of between £25,000 and £100,000, or between £17,000 and £65,000;
- that’s a pretty wide range in the size of the deposit you may need, but the same principle applies to any first time buyer mortgage – the bigger the better – the bigger your deposit, the less you need to borrow and the more choices you have of competitively-priced mortgages;
- that still leaves the question of the mortgage itself, of course – and how much you can borrow;
- since that is determined by a whole host of factors – including your income, outgoings and credit history – there are no hard and fast rules, but a widely-used rule of thumb is 4.5 times your earnings (and that of your spouse or partner if you are applying for a joint mortgage);
Any mortgage lender is obliged to test the likely affordability of your borrowing and to predict the possible effects on that ability to make the mortgage repayments if you lost your job, became sick, or you decide to have a baby.
Why choose Fogg Financial?
We pride ourselves in finding the first time buyer’s mortgage specifically suited to your own needs and circumstances. Individually tailored mortgage solutions, as we call them – since they are just that.
Finding that individually tailored solution is less complicated or daunting than you might think. We’ve streamlined it down to just five relatively straight forward steps – based on our working together simply by talking to each other, finding a suitable mortgage product, our completing the necessary application, and you securing the mortgage offer with which to buy your first home.