Getting onto the property ladder for the first time can be exciting! However, it can also be tricky if you’re unsure what to expect.

We are First Time Buyer Mortgage experts who have helped thousands of first-time buyers throughout the UK.

With experts based throughout the UK, we can offer competitive prices and can quickly get costs to you.

There is a wealth of help and advice available for first-time buyers, which means you should be able to get your foot onto the first rung of the ladder after just a few simple consultations with a mortgage advice expert.

However, there will also be a few things you’ll need to bear in mind when applying for your first mortgage.

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Why Choose Us?

Are you buying a house for the first time? Need help understanding how a mortgage works? We’re here for you.

We offer several great mortgage services and are happy to assist you with anything you need more information on.

There are fees, surveys, reports, application forms, and more you will need to consider.

An advisor will help you get off the right foot by looking at the best possible deals and rates for your current situation.

Buying a house for the first time isn’t always simple. With the housing market always changing and plenty of first-time purchasers relying on a loan or two from Mum and Dad, each application will look slightly different.

When you talk to us, you will be in safe hands and know everything there is to know for a first-time buyer mortgage!

What is a First-Time Buyer Mortgage?

You will want to apply for a first-time buyer mortgage if you have never owned a property.

First-time buyer mortgages often include a lower deposit and attractive deals with rewards! You will still need to make monthly payments. 

Government programmes, such as the mortgage guarantee scheme and the help-to-buy equity loan scheme, will help you purchase a property with a lower deposit. 

Help for First-Time Buyers

Applying for a first-time buyer is available from our local advisors of advice experts.

We work with thousands of individuals, couples and families each year who are completely new to mortgages and what they entail.

One of the biggest pieces of help we can offer to first-time buyers is that they are ‘mortgage-ready’.

Ensure their credit file is healthy and ready to face the scrutiny of lenders they may be applying to.

What are the latest schemes available to help first-time buyers?

You can use the First Homes scheme or the 95% Mortgage scheme if you are a first-time buyer. 

First Homes Scheme

First Homes is a scheme that helps first-time buyers get on the property ladder by offering homes at a discounted rate of 30%. 

In some locations in the UK, you may even be able to access homes for 50% less than market value. 

95% Mortgage Scheme

The 95% mortgage guarantee helps first-time buyers secure a mortgage with as low as a 5% deposit. 

New homeowners can access a 95% mortgage, meaning they don’t have to save up for a higher deposit and can get on the housing ladder sooner. 

Shared Ownership

If you are a first-time buyer that earns less than £80,000 per year, you could be deemed eligible for a shared ownership mortgage. 

If you live in London, you can access this kind of mortgage if you earn less than £90,000 per annum. 

With shared ownership, you buy a percentage of your property, such as 25%, and then pay rent on the rest. 

Joint Mortgages

Joint mortgages allow you to split a mortgage with a friend, family member, or partner. It allows you to make lower individual monthly payments. 

All members of the joint mortgage own an equal percentage of the property, or you can split the share depending on the amount you put in each month. 

Are you eligible for a first-time buyer mortgage?

You are deemed eligible for a first-time mortgage if the following holds:

• You are purchasing your first residential property. 
• You have at least a 5% deposit saved. 
• You have a good credit history. 
• You have an annual income of at least £25,000.

First Time Home Buyer Do’s & Dont’s

Here are a few great ways to ensure you are ready to take a home loan. Do be aware that this may take months of preparation!

• Make sure to pay your bills on time. Avoid paying late on credit cards and any other agreements in particular.
• Become registered on the electoral roll. This will help identify you and confirm that you live in the country.
• Ensure to save up for a deposit. Lenders could have access to details which show whether or not you have been saving money regularly and will use this as a good sign that you will be able to pay any upfront fees and ongoing charges.
• Make certain you have paid off any outstanding debt you may have remaining. Student loans won’t count – but bank loans and overdrafts will.
• Your credit rating will be your biggest asset in securing your first mortgage. Therefore, it makes sense to try and be as financially sensible in the run-up to buying a property!
• Lowering any credit card debts could help guide the reason behind this because the first thing lenders look at is how much you already owe money to, and you could have low credit card debts or no credit card debts. They almost trust you more and can also lend you more money, so if you have been looking at a pre-owned house, you may be able to afford to buy a new house.
• Loan to value is the ratio that loan the asset you are looking to buy. Loan to value is also known as LTV.

Mortgages For First Time Buyers

People worry that the property market won’t favour first-time owners. This is hardly ever the case. There are several specialist products, deals and services which can help get new owners.

As the closest experts, many people have in finding their ideal first mortgage.

We are proud to be able to source and suggest fantastic mortgages for 1st-time buyers who fit a wide range of financial profiles.

There is no need to worry about buying a house for the first time. First-time buyers will likely have plenty of questions and concerns.

We, therefore, offer an impartial, understanding service whereby we will consult with you on all the aspects of first-time buying that you may not be clued up about.

If you need more on Mortgage services, contact us today!

First Time Buyer Mortgage Rates

It is common for a first-time buyer’s mortgage deal to have a 10% deposit; however, you can sometimes be lucky only to have to place 5%!

Rates can vary and depend on who is applying! Home loan rates can change with the wider market, and certain deals can be unlocked for certain people.

Types of 1st Time Mortgage Deals

We always advise looking for the types of mortgage available to buyers, which fall under ‘fixed’ and ‘variable’.

Fixed Mortgages

A fixed mortgage offers you a monthly rate that is fixed for a certain time.

Variable Mortgages

A variable rate can vary depending on lender rates of interest.

While fixed-rate mortgages can give you peace of mind and security during your mortgage repayments schedule, they may often be levelled at a higher cost than what you expect from a variable loan.

Therefore, it is always worth discussing your needs and preferences with an advisor if you’re unsure which option to take!

Benefits of a First-Time Buyers Mortgage

Here are some advantages you can expect when you come to us for your advice on first-time buyer mortgages:

• Flexibility and competitive rates of interest.
• We will never advise you to take out deals which you can’t feasibly afford or manage for the long term.
• Consideration of future opportunities for you. Setting up a home loan for the first time can be a long-term commitment!
• Sales can be completed quicker.
• You can raise funds is easy.

FAQ’s

What qualifies me for a 1st time mortgage?

If you have never owned a house or flat before, you will be qualified as a first-time buyer!

How much can I borrow as a first-time buyer?

First-time buyers may be allowed to borrow up to 4.5 times their annual salary. 

Sometimes mortgage lenders may even allow up to 7 times your salary, depending on your financial background. 

When you sort an agreement in principle from a lender, this will give you an idea of how much you could borrow.

The size of your deposit will help to show you how much you could need to borrow.

What deposit do I need for a first-time buyer mortgage?

You can access a first-time buyer mortgage deal with just a 5% deposit. 

However, you may want to consider saving up for a higher deposit, such as 10% or even 20%, as this may help lower your monthly payments and prove to your lender you are low risk. 

Do first-time buyers have to pay stamp duty?

First-time buyers are exempt from paying stamp duty on properties up to £300,000.

You will receive the first £300,000 free from stamp duty on properties worth up to £500,000. 

You must pay standard stamp duty rates if your first-time property is worth over £500,000. 

Find More Info

Are you interested in finding first-time buyer mortgage rates nearby or in your area?

Speak to a mortgage advisor for first-time buyers today by completing our contact form. We can arrange a free consultation with a local expert at your convenience.

At First Time Buyer Mortgages, we can assist you with anything you require. Contact us today for several great First Time Buyer Mortgage services.

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