Buying a first home is a significant milestone, but the mortgage process can be daunting for first-time buyers. This case highlights how we helped a couple from Farnborough secure the right mortgage for their needs, offering affordability, stability, and peace of mind as they purchased their first home in Farnham.
The Scenario
The customers were purchasing a semi-detached house in Farnham for £415,000. They had diligently saved a £55,000 deposit, meaning they required a mortgage of £360,000.
Both customers were employed full-time, one working in finance and the other as a teacher.
They had specific requirements for their mortgage:
- 5-Year Fixed Rate: They wanted the stability of consistent monthly payments for the first five years, making budgeting easier.
- Capital Repayment Basis: They preferred a repayment mortgage to ensure the debt would be fully paid off by the end of the term.
- 30-Year Term: This term balanced affordability and the desire to avoid paying interest over a longer period unnecessarily.
Additionally, the couple expressed interest in discussing protection options closer to completion to safeguard their financial future.
The Challenge
The key challenges included:
- Competitive Rates: The couple needed a product with an affordable interest rate to keep their monthly payments manageable.
- Seamless Process for First-Time Buyers: As first-time buyers, they sought a lender experienced in handling such cases smoothly.
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The Process
Step 1: Understanding the Customers’ Needs
We conducted an in-depth consultation to gather all necessary details about their financial situation, goals, and preferences. Their focus on stability, affordability, and long-term planning guided our recommendations.
Step 2: Researching Suitable Lenders
Using our extensive network, we identified lenders offering products that matched their requirements. We prioritised lenders with competitive fixed rates, suitable terms, and a track record of supporting first-time buyers.
Step 3: Choosing the Right Product
Nationwide emerged as the best choice, offering a 5-year fixed-rate mortgage on a capital repayment basis. The product met all their preferences, including affordability and a term length of 30 years.
Step 4: Streamlining the Application
We managed the application process, ensuring all paperwork was accurate and submitted promptly. Our proactive approach minimised delays and provided the customers with peace of mind throughout the process.
The Solution
Nationwide provided a tailored mortgage solution:
- Loan Amount: £360,000
- Product Type: Capital Repayment Mortgage
- Rate: Fixed for 5 years
- Term: 30 years
This product offered stability through fixed payments, aligned with the customers’ budgeting goals, and ensured the mortgage would be fully repaid by the end of the term.
Why This Solution Worked
- Stability: The fixed rate provided predictable monthly payments, easing budgeting concerns.
- Affordability: The 30-year term ensured payments were comfortable without extending the mortgage unnecessarily.
- Peace of Mind: The repayment structure offered the reassurance of gradually paying off the mortgage.
The Outcome
The customers successfully secured their mortgage and moved forward with purchasing their first home.
Key benefits included:
- Predictable Payments: The fixed rate ensured consistent payments for the first five years.
- Comfortable Budgeting: The term length aligned with their financial plans.
- Progress Toward Ownership: The repayment mortgage ensured they were building equity in their new home.
Closing Thoughts
Buying a first home is an exciting journey, and finding the right mortgage can make all the difference. This case demonstrates the value of tailored advice and a proactive approach to securing the best outcome.
If you’re a first-time buyer looking for guidance on your mortgage journey, we’re here to help.
Contact us today to explore your options and take the first step toward owning your dream home.
