In This Article
What is a first time buyer?
In the UK, a first time buyer is a person that has not owned a property before meaning an individual that has not been named on the deeds of a property before or had a mortgage.
Some lenders have different interpretations of what a first time buyer is. For example, there are lenders that consider first time buyers to be individuals that have not had a mortgage within the last three years.
This interpretation of first time buyer relates to the lender’s individual criteria. The correct meaning though is a person that has not been named on the deeds of a property before. Whether or not you are a first time buyer may have an impact on the amount of stamp duty land tax that you have to pay when you buy a property.
If you’re unsure about your status and what that will mean in terms of paying stamp duty, we would recommend that you contact a property lawyer. Here is a useful stamp duty calculator.
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About Cheltenham
When considering where to buy your home, it’s important to know about the town where you will be living. here is some information about Cheltenham which we hope will be useful.
Cheltenham is a town in Gloucestershire, England. The town is situated on the edge of the Cotswolds, an Area of Outstanding Natural Beauty. Cheltenham is home to a number of historical and architectural landmarks.
Cheltenham is home to two hospitals, Cheltenham General Hospital and Gloucestershire Royal Hospital, as well as a number of independent medical practices. The town is also home to a number of schools, both state and independent. Cheltenham is twinned with Charlottesville, Virginia in the United States.
The city is home to Gloucestershire County Cricket Club, who Enjoy inside the County Championship and in limited overs cricket. They play their residence games at The Bristol Avenue Ground, which also usually hosts football matches and music concerts.
What are the best areas of Cheltenham to buy in?
There is no clear answer as to the best areas of Cheltenham to buy in as preferences and budgets will vary from person to person. However, popular areas among homebuyers include Charlton Kings, Leckhampton and Swindon Village.
Charlton Kings
Charlton Kings is a smaller village located just outside of Cheltenham in Gloucestershire, England. It is said to be one of the oldest villages in the country, with records dating back to the 9th century.
The village is home to a number of historical buildings and monuments, including the Grade I listed St Mary’s Church and the Grade II listed manor house, Charlton Park. The village is also home to a number of small businesses, including a number of pubs and restaurants.
Leckhampton
Leckhampton is a village in Gloucestershire, England. It is located on the edge of the Cotswolds, about 5 miles (8 km) north-east of Cheltenham and 10 miles (16 km) south-west of Oxford. The village has a population of around 3,000. It is a popular tourist destination due to its proximity to Cheltenham and the Cotswolds. There are a number of historical buildings in the village, including the Grade II listed Church of St Peter and St Paul. The village is also home to Leckhampton Court, a country house which is now a hotel and conference centre.
Swindon Village
Swindon Village is known for being one of the most sought-after locations and a key part of Cheltenham’s regeneration. It is situated to the west of the town centre, bordering on Gloucester Road and the A40. The area is made up of Victorian and Edwardian properties, mostly semi-detached and terraced houses. There are also a number of conversions, such as the old police station and gasworks, which have been turned into flats. Swindon Village has its own primary school, Swindon Village School, and its own community centre, The Swindon Village Centre.
Is the housing market good in Cheltenham?
It can be hard to say whether the Cheltenham market is good as the housing market is constantly fluctuating. However, overall, the housing market in Cheltenham has been stable in recent years which is a good sign.
As a result, this should make Cheltenham a consideration as the destination for your first home.
When looking for a property in Cheltenham, websites such as Rightmove, Zoopla and On The Market are great places to start.
What deposit would I need for my first property in Cheltenham?
The minimum amount of deposit that you would need to put down would be 5%. When putting down the minimum deposit the rates reflect the higher risk to the lender and result in a higher interest rate.
Your mortgage adviser will be able to discuss the difference in rates and fees when putting down smaller and larger deposits.
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How much can I borrow as a first time buyer Cheltenham?
The amount that you can borrow as a first time buyer will depend upon your individual circumstances. This will take into account your income, the amount of your deposit, the number of financial dependents that you have, your credit score and the amount that you pay for monthly commitments such as loans and car payments.
5 x income is possible with some lenders depending on the situation. Your mortgage adviser will understand your scenario and then be able to inform you of the amount that you can borrow.
If the property requires work and you are looking to improve and sell read First Time Buyer Renovation Mortgage.
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I have bad credit. Would I still be able to get a mortgage to buy my first home in Cheltenham?
Having bad credit will not always stop you from getting a mortgage. Adverse credit is a complicated subject and there is a lot for an adviser to assess when working out your mortgage options.
For example, they will need to get an understanding of what the bad credit relates to. they would need to know when it happened, what type of bad credit was it (for example bankruptcies, debt management plans, arrears etc) how much it was for, whether the debts have now been repaid and what was the cause.
The amount of deposit that you have, the level of unsecured debts that you have and your earnings will also be a factor determining what you can borrow and which lenders will lend to you. Your mortgage advisor will be able to work this out for you.
To find out more about your credit score, websites such as Experian, Equifax and Check my file can be useful.
What are the best schools to be near to when buying our first home in Cheltenham?
It’s not uncommon for people to choose the place where they will end up living based on the quality of the schools that surround that area. Owning a property within a certain catchment area can significantly boost the value of it.
There are many great schools in Cheltenham. A couple of the top schools in the Cheltenham Bournside School and Charlton Kings Junior School.
How long should the term of my first mortgage be?
The length of your mortgage term is completely up to you. Many first time buyers choose a longer term such as 35 years to keep the repayments lower than what they would be on a shorter term such as 15 years.
Your expected retirement age should be taken into consideration when choosing your mortgage term. For, example if you are 45 years old hoping to retire at 65, it’s unlikely that a 30 year term would be suitable as it would continue past your preferred retirement age by 10 years. Alternatively you may be able to get a mortgage into retirement.
Your mortgage adviser will be able to tell you the difference in monthly costs for different terms of the mortgage.
We are based in Cheltenham, should our mortgage adviser be too?
It is not essential for your mortgage adviser to be based nearby. some borrowers choose to use a mortgage adviser that conducts business mainly by email and telephone. This can be because with certain work commitments it can be hard to fit in longer face to face appointments.
If you feel that you would need a face to face mortgage appointment to understand the process fully, you should seek a mortgage adviser local to you. We would recommend asking for referrals and checking reviews when choosing your mortgage advisor.
Your mortgage adviser should be regulated by the Financial Conduct Authority and showing on the FCA Register.
I NEED ADVICE can arrange for a national qualified mortgage professional to call you to discuss your options and give you the individual advice that you need.
What should we be aware of when buying a property in Cheltenham?
When buying a property it’s important to know what potential issues you may face in a certain area.
One issue facing Cheltenham is flooding, so be sure to check if the property you are interested in is in a flood risk area. Also, a variety of environmental and conservation designations may exist on property in Cheltenham, which could affect redevelopment or building works in the future.
Would a first time buyer get a buy to let mortgage to buy their first property in Cheltenham?
It’s not impossible to get a buy to let as a first time buyer so a property in Cheltenham maybe within reach of first time buyers looking to get on the market with an investment property.
Most lenders need you to own a residential property before you mortgage your first buy to let property but this is not always the case.
The amount that you earn, your deposit, your credit score and the rental income from the property will all be taken into account when looking for a lender to help you with your first buy to let property.
If you would like I NEED ADVICE to find you a mortgage adviser that could give you your options for buying an investment property in Cheltenham, please complete the contact form.
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Conclusion
Cheltenham could be a great spot to buy your first property. In general, property prices have remained steady over the years, the town has plenty to do and employment is strong.
If you are a first time buyer in Cheltenham, and would like I NEED ADVICE to arrange for a qualified mortgage professional to give you your options for taking your first mortgage in Cheltenham, please complete the contact form.
They are experienced, which can boost your chances of being approved.
