Which? Mortgage Advisers comments on Help to Buy figures; issues first-time buyer top tips
As the Government declares Help to Buy a success on the back of promising early application figures from participating lenders, Which? Mortgage Advisers has reminded first-time buyers to be aware of the full range of options available to them and highlighted the importance of the correct preparation.
Royal Bank of Scotland and Halifax revealed they have received a total of 2,384 applications potentially worth £365m in mortgages during the first four weeks of the second part of the Government initiative which led David Cameron to describe the scheme as “already delivering”.
Which? Mortgage Advisers has been keen to stress to first-time buyers that lenders not involved in the scheme are also offering competitive mortgages and that there are alternatives such as guarantor mortgages.
Amid all the confusing headlines, we also want to help first-time buyers be as prepared as possible when they are applying for a mortgage and to this end recommend they discuss their situation with an impartial adviser.
Which? Mortgage Advisers has also compiled a set of five top tips to ensure that potential homeowners have a greater chance of navigating the process successfully.
Barney McCarthy from Which? Mortgage Advisers said:
“It is great to see confidence starting to return to the first-time buyer market and the Help to Buy scheme may well help some homeowners to realise their property ownership aspirations, but it is important to distinguish between applications and approvals. Lenders participating in the Government initiative are still applying the same tough criteria as before, so there is no guarantee that borrowers will be approved, even if they have a suitable deposit.
“Indeed, saving for a deposit may seem like the be-all and end-all, but there are a number of things first-time buyers can do to improve their chances of being accepted for a mortgage. Independent advisers can add huge value to the process by not only reminding first-time buyers of their obligations, but also by being aware of the different criteria each lenders impose and what documentation they require to complete a case. Independent advisers are also able to search thousands of mortgages from the whole market and not just those offered by a particular lender.”
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