First Time Buyer

Top tips for first time buyer contractors 

First time buyers make up a vital sector in the housing market, however from our experience CIS Subcontractors who are also First Time Buyers struggle the most to find the right mortgage for their circumstances. This is often because mortgage lenders do not accept gross earnings paid for the CIS Scheme as a valid income for mortgage lending purposes.

CIS Mortgage Advice helps sub contractors to successfully take their first step onto the property ladder, and our expert mortgage advisers will be able to guide you through what can, at first, seem to be a daunting process – and help you get the maximum loan possible.

Here’s a few hints to set you up for success.

Types of mortgage

When you consider what type of mortgage you want, think ahead. A variable rate mortgage can appear cheap today, but interest rates can increase, and even a small rise could impact your monthly budget significantly.

Credit rating

Make yourself attractive to lenders by showing that you have kept up-to-date with payments on all your credit or store cards and any other borrowings. You can check your credit report for free using Experian, or one of the other similar agencies.

If you do have any bad credit, don’t worry, but do tell our mortgage advisor immediately, no matter how minor you think it is.

Deposit

Save for a deposit. Use an ISA to get the annual tax benefits from qualifying exemption on the interest.

Hidden costs

Remember to budget for ‘hidden’ costs too, such as legal fees, building insurance, surveyor’s fees (although in Scotland, it is the seller who has to prepare a Homebuyer’s survey) and removal costs.

After the recent budget, few first time buyers in England and Wales still have to consider Stamp Duty (or Land and Buildings Transaction Tax as it’s known in Scotland, or Land Transaction Tax in Wales) – but we’ll keep you straight.

And of course, don’t forget to factor in furnishings for your new home!

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE