Mortgage For A First Time Buyer

If you’re looking for a mortgage for a first time buyer we’re here to help. We pride ourselves on making mortgages easy and we’ll guide you throughout the process of buying your first home.

What is a first time buyer?

You’re classed as a first time buyer if you, and anyone you’re buying with, are purchasing your first residential property.

Mortgage for a first time buyer: Where do I start?

You’ll Need A Deposit

When you’re a first time home buyer you’ll usually need a deposit of at least 5% of the property’s value. However the bigger your deposit, the more deals you’ll usually get access to. You may be offered a better rate too.

How Much Can You Borrow?

The amount you’ll be able to borrow on a first time buyer mortgage depends on a number of factors including your income. And if you’re looking for mortgage help for first time buyers, contact us and one of our mortgage experts will crunch the numbers for you and tell you how much you’re likely to be able to borrow

What type of mortgage as a first time buyer is right for me?

There are different types of mortgages, including:

With fixed-rate mortgages the amount you’ll pay on your mortgage each month stays the same for a fixed period of time, usually 2, 3 or 5 years. These mortgages offer the security of knowing your payments won’t increase during the initial term. Once your deal ends it’s usually a good idea to switch mortgages to avoid paying your lender’s standard variable rate (SVR) as this is usually more expensive than other mortgage rates.

These typically offer a discount from the lender’s SVR for a fixed period. For example, if a lender’s SVR is 5% and the discount is 1.5% off the SVR, you’ll pay a rate of 3.5%. However, the amount you’ll pay will move up or down if the lender changes their SVR.

Tracker mortgages generally follow the Bank of England base rate, plus a set percentage. So if the base rate is raised by 0.5%, the rate you’ll pay on your mortgage will increase by the same amount. But unlike fixed-rate mortgages the amount you’ll pay can go down too.

If this all sounds a bit complicated, don’t worry – that’s where we come in! We make mortgages easy so if you’re looking for first time buyer mortgage advice, contact us. We’ll explain everything to you in a way that’s easy to understand and we’ll help you decide which mortgage is right for you!

How much can I borrow as a first time buyer?

The amount you’ll be able to borrow on a mortgage for a first time buyer depends on a number of factors, including:

  • Your income
  • Your credit rating
  • Any outstanding debt
  • The size of your deposit
  • Your outgoings.

 

To find out how much you’re likely to be able to borrow, speak to one of our team of first time buyer mortgage advisors – we have a team ready to help you!

When should I get first time buyer mortgage advice?

It’s a good idea to get first time buyer mortgage advice before you start house-hunting because:

  • You’ll know your budget.
  • You can get an Agreement in Principle, also known as a Mortgage Promise, a Mortgage in Principle or Decision in Principle. This is a document from a lender stating that it would lend you a certain amount ‘in principle’ based on information you’ve provided. And they can be useful to show to estate agents.

 

If you’re looking for mortgage help for first time buyers, we can help. Our specialist mortgage brokers offer access to over 90 lenders and 12,000 mortgages, and have access to exclusive broker-only products so we can help you find the right mortgage for you. We’re here to take the pressure off you and make sorting your mortgage easy. So for mortgage help for first time buyers contact us today!

There may be a fee for mortgage advice: The actual amount you pay will depend upon your circumstances, with the fee being up to 1.5% but a typical fee is £495. Your home may be repossessed if you do not keep up the repayments on your mortgage.

When should I apply for a mortgage for a first time buyer?

So when should you apply for a mortgage for a first time buyer? Once you’ve found a property you want to buy and had an offer accepted it’s time to make your full mortgage application. This is when you get back in touch with us and we’ll get the ball rolling!

Help buying a first home: What’s available?

So when it comes to help buying a first home, what is there? There are several schemes available to help first time home buyers, including:

Lifetime ISAs (LISAs) can be opened by anyone aged 18-39 and are for buying your first home or for your retirement. You can save up to £4,000 each tax year into your LISA and you’ll get a 25% bonus on your contributions from the government, up to a maximum of £1,000 per year. This could be a big help buying a first home. But there are restrictions on how you can use the cash so check it’s right for you before applying. We can’t advise on Lifetime ISAs, so you would need to seek independent advice.

This is another scheme designed to help buying a first home. It’s aimed at local first time home buyers and keyworkers and offers properties at a discount of at least 30% off the market price. If you later sell the property the same percentage discount will be passed on. 

To find out more about mortgage help for first time buyers contact us. We have a team of first time buyer mortgage specialists ready to help you.

Things to consider when getting a mortgage for a first time buyer?

At The Mortgage Factory, we are a well-oiled machine when it comes to first time buyer mortgage advice. But as well as getting first time buyer mortgage advice there are other things to consider when buying your first home.

 

Do Your Research

When you’re house-hunting think about what’s most important to you and where you may compromise. So are you happy to have a longer commute to work to get your dream home? And would you consider buying a property that needs work doing to it if it means you can get your dream location or a bigger property?

Factor In Other Costs

When you buy a home there are other things you’ll need to pay for on top of your deposit. So make sure these are factored into your budget! These include:

  • Survey costs.
  • Legal fees.
  • Stamp duty, depending on the value of your property.

 

Make Sure You’re Ready

Buying your own home comes with other costs too – if your boiler breaks down you’ll need to deal with it, you won’t have a landlord who will sort it out for you. So make sure you’re prepared for the financial commitment of owning a property.

For more information, and first-rate first time buyer mortgage advice, get in touch with The Mortgage Factory today.

There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances, with the fee being up to 1% but a typical fee is £495.

Your home may be repossessed if you do not keep up the repayments on your mortgage.

What makes us different?

Reviews

Peter & Frances
Read More
“We would just like to say THANK YOU to you all at The Poulton Branch in helping us to obtain a remortgage. Special thanks goes to Marc Bennett, who was very helpful and extremely patient during the process. Marc was an absolute star, providing us with constant updates and much appreciated professional advice. We are eternally grateful for what you managed to accomplish on our behalf, we are delighted!”
Amanda & Nolan
Read More
“Thanks so much for all the help and support you provided during our recent house move, Sam and team! In the period of stress and uncertainty, The Mortgage Factory shone out as being consistently helpful and professional. The help, guidance and direction is so very much appreciated. Thanks again.”
Debs
Read More
“I just want to sat a huge thank you for helping me purchase my second property. I know it was tricky at times, and you invested a lot of your time into making sure things progressed Professional and friendly, as always.”
Chris & Kiera
Read More
“Sam, and everyone at The Mortgage Factory. Thanks so much for helping us to buy our first house. You went above and beyond, and we really appreciate all of your hard work.”
Ellie
Read More
“I just want to say thank you for everything you have done in helping me buy my first home. You made the process stress-free, and I couldn’t be happier!”
Previous
Next

Book a Free Initial Consultation

By submitting this form, I consent to the storage of my data according to our Privacy Policy (GDPR).