First Time Buyer ADVICE PLEASE

cm20

Hello, I am new to this and this is my first ever post so forgive me if I am asking questions that seem pointless

Anyways, I was wondering if anyone could give me advice on what I should do now? Myself and my partner have been saving for a while now and have just over 5% worth of deposit plus both have help to buy ISA's which we will get the bonus from. However, I understand this is only available to cover legal fees and not for the deposit itself, is this correct?

In an ideal world we would love to save more and have a higher deposit. However, we are getting to the point now where we really want to buy. So my question is, will we even be considered with only a 5% deposit? And should we go see a mortgage adviser before we have seen a house we wish to buy or after we have seen one?

Any advice is much appreciated. As first time buyers, we are finding the whole process daunting and unsure where to begin.

thanks in advanced

spadoosh

Not sure about the HTB aspect, someone will be able to advise you shortly im sure.

You can get 95% mortgages although it will likely be more expensive (direct comparison to say a 90% ltv or less) and it could also leave you more vulnerable should house prices drop. I would see your mortgage broker before you find a house. Basically theyll tell you how much you can borrow with the caveat the house is mortgageable.

kingstreet

The bonus can form part of your deposit - at completion, just like it can contribute to legal fees, stamp duty etc.

It can't be part of what you hand over to your solicitor ahead of exchange of contracts.

Sami_-Finbud

Regarding the HTB aspect you may find this useful:

How does the Help to Buy Isa bonus get paid?

Once you’re ready to buy a home, these are the steps you’ll need to follow to claim your Help to Buy Isa bonus: Your and the seller’s solicitors agree a date for completion.

You close your Help to Buy Isa and provide your solicitor with the closing documents.

Your solicitor submits your bonus request and receives confirmation of how much you’re entitled to.

You receive a completion statement for the property which shows how much you’ll need to pay, with the bonus already deducted as it gets paid to your solicitor rather than you.

Source: which.co.uk

If you want some sort of idea to how much a lender would be willing to lend to you before house shopping, then it would be best to speak to a mortgage broker/advisor