Another common mortgage myth in England is that you can’t get a mortgage if you’re a first-time buyer. Many lenders have specific programs for first-time buyers that can help them get approved for a mortgage, even if they have little or no credit history.
For example, the Help to Buy scheme, allows buyers to purchase a new-build property with just a 5% deposit, and the Shared Ownership scheme allows first-time buyers to purchase a share of a property and pay rent on the remaining share. These government-backed schemes are designed to help first-time buyers get on the property ladder.
Additionally, many lenders also offer special mortgages for first-time buyers, such as a lower down payment or a lower interest rate. These can help make it easier to afford the monthly mortgage payments.
It’s important to note that, even as a first-time buyer, you will still need to demonstrate your ability to afford the mortgage payments. Lenders will take into account your income, employment history, and debt-to-income ratio when determining your mortgage eligibility.
In conclusion, as a first-time buyer, it’s not impossible to get a mortgage. With various government-backed schemes and special mortgages offered by lenders, it’s possible for first-time buyers to purchase a house even if they have little or no credit history. It’s always advisable to consult with a mortgage advisor, who can help you understand the different options available to you.