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First time buyer mortgages

Buying a home for the first time is an exciting moment for anyone. This is the place you will come to every day and call home for the foreseeable future. If you are looking into financing options, a first-time buyer mortgage may be the best choice for you.

For you to qualify for a first-time mortgage, you must never previously have acquired an interest in a residential property or an equal interest in land from any part of the world. Being a first-time mortgage candidate gives you access to stamp duty relief and you are eligible for a number of different government backed schemes. These benefits for first time home buyers can make a great difference in the final value of the first home you can afford.

You cannot qualify as a first-time home buyer if:

    • You have a property you inherited or was gifted to you
    • You have previously acquired a property through a financier on behalf of another person
    • Your name is included in a title deed to a property owned by someone else

Taking out a first-time buyer mortgage 

The cost of buying a home in the UK is at an all-time high. However, you can still afford to own a house through mortgage financing.

A mortgage is simply a lumpsum you get from a lender to be able to pay for your home. You will need to pay back the lender with interest over a stipulated period.

To be able to get mortgage financing, the borrower is expected to put down a deposit. The amount required depends on the lending institution, your credit score and other aspects of your contract. Generally, the deposit can be as low as 5% or as high as 40% of the cost of the property.

The property you want to buy is the security for your mortgage loan. The interest of the lender is noted with the deed to the property at the land registry. This way, the lender can repossess the property if you default on your mortgage payment.

However, should your finance planning be in place and good order we expect defauliting on payments won’t be an issue. So now you can sit in the comfort of your own home, and allow us to take the time and effort to find the right mortgage product for you. Our panel of lenders is from the whole of the market, we provide a tailored best-fit recommendation that works for your personal circumstances and lifestyle.

Frequently Asked Questions

Typically, the minimum deposit lenders will accept is 5% of the property value. These are known as 95% mortgages. Whilst these are great if your deposit is on the smaller side, you do however tend to pay a little more on your monthly payments. Lots of our lenders ask for at least 10% of the property value as a deposit. However, a little known option currently being marketed as a 100% mortgage allows immediate family members savings or equity on their house to replace your deposit. Nevertheless, the more you can save up, the better the mortgage deals you’ll have to choose from – larger deposits and lower rates go hand in hand.

Yes, a gifted deposit is usually given by a family member and forms all or part of a deposit on a property for a first-time buyer. This comes in handy if you haven’t been able to save the minimum 5% deposit you need for most mortgages, or to help you increase your deposit to say 10% or 15% to secure a cheaper mortgage rate and lower monthly repayments.

For single and joint applicants, lenders will usually lend in the region of four to five times your annual salary. Lenders also factor in your personal expenses, such as bills, debts, and childcare. It can also depend on the deposit you put down; a higher deposit might mean you are able to borrow more. With so many things to consider, using a mortgage broker is the best way to get a mortgage that works for you and your lifestyle.

Get in touch! Write us an email, give us a call, or fill in one of our forms and we will get back in contact at a time convenient for you.

Get in touch to see how we can help you get onto the property ladder!

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