First-time buyer mortgage advice

Your deposit

Some lenders will accept a deposit of 5% or less, depending on their criteria — so 5% isn't the minimum. A bigger deposit can open up more options, but it isn't the only factor. Lenders will want to know where the deposit comes from, including any gifted money.

Affordability

Lenders look at your income, outgoings and credit commitments, then test whether you could still afford payments if rates rose. An agreement in principle can give an early indication, but it is not a mortgage offer.

Documents you'll usually need

• Photo ID and proof of address.
• Recent payslips, or accounts and tax calculations if self-employed.
• Recent bank statements.
• Evidence of your deposit.

Costs beyond the deposit

Budget for solicitor fees, survey costs, lender fees, moving costs and any property tax that applies where you are buying. In Scotland this is Land and Buildings Transaction Tax, which has its own first-time buyer relief rules.

Buying a home in Scotland

Buying in Scotland works differently from the rest of the UK. Sellers must usually provide a Home Report, which includes a survey and valuation, an energy report and a property questionnaire. Lenders often use the Home Report valuation, so it is worth reading before you offer.

Many homes are marketed as 'offers over' a figure, and popular properties may go to a closing date. Once your solicitor has concluded missives, the purchase is legally binding, so your mortgage needs to be in place before that point.

• Get an agreement in principle before you start viewing seriously.
• Read the Home Report valuation and think about how far above it you could fund from your own money.
• Budget for Land and Buildings Transaction Tax (LBTT), legal fees and moving costs. Revenue Scotland publishes the current rates.

First-time buyer relief on LBTT

First-time buyers in Scotland may be able to claim first-time buyer relief on Land and Buildings Transaction Tax, which can reduce or remove the tax on a lower-priced home. Your solicitor will confirm whether you qualify and what you owe.

Buying a new-build home

New-build homes can be popular with first-time buyers in areas such as Gartcosh, Glenboig and Cumbernauld. Mortgage offers have expiry dates and new-build completion dates can move, so timing matters. Some lenders also treat builder incentives differently, so tell Charlene about any offers from the developer.

When the Home Report valuation is below your offer

In Scotland, lenders base their loan on the Home Report valuation or the purchase price, whichever is lower. If you offer over the valuation, the difference usually has to come from your own savings on top of your deposit. Getting an agreement in principle and checking the Home Report before you offer helps you set a realistic limit.

Local first-time buyer advice

Charlene is based in Muirhead and Chryston in North Lanarkshire and advises clients across Moodiesburn, Gartcosh, Glenboig, Stepps, Cumbernauld, Coatbridge, Airdrie, Glasgow and surrounding areas. Appointments can be face to face locally, or by phone or video if that suits you better.