First Time Buyers Mortgage

A first-time buyer mortgage is specifically designed for individuals who have never owned a property before. To qualify for a first-time buyer mortgage, you must typically not have owned a property in the past, and meet the lender’s income and credit requirements.

Some benefits include deposits and special government-backed loan programs. Additionally, some lenders offer special programs and incentives, such as increased lending, assistance with fees, or cashback to help first-time buyers afford the costs of purchasing a home.

The application requirements can vary depending on the lender, but generally you’ll need to provide documentation of your income, employment, and undergo a credit check. You may also need to have a certain amount of money saved for a down payment and closing costs.

As well as going through the process myself just a few years ago, I have helped lots of first time buyers using a number of the schemes to purchase their first home.As well as recommending which mortgage will best suit your needs I can provide guidance throughout the mortgage application and purchase process as a whole. There are no stupid questions with me and I aim to help you understand what is happening every step of the way.  I have access to deals that can’t be found by going direct and can save you the time and risk of an unexpected declined application.

Arrangement/Product fees: Most lenders charge fees to organise the mortgage and these will vary from lender to lender. These fees will often make it possible for the lender to offer the applicant access to lower interest rates. With some mortgage products, these fees are waived as an incentive to the customer.

​Valuation fees: An independent evaluation is required before a mortgage can be approved on your new home. Most lenders offer free valuation on residential mortgages, but sometimes you will pay this cost and it will be non-refundable.

​Stamp duty: First-time buyers don’t pay Stamp Duty unless the house is valued at £425,000 or above. There are plenty of stamp duty calculators online you can use to help work out the costs based on your circumstances.

 Legal fees: Solicitors will carry out the legal work required when purchasing a property including local authority searches. The fees for these services will vary between firms, so I would recommend speaking with several firms to get quotes.

For a standard residential mortgage, you’re likely to need at least a 10% deposit. With some home ownership schemes, it may be possible to secure a mortgage with a 5% deposit.

The government has introduced a number of schemes to try and help first-time buyers:

The Shared ownership Scheme – Purchase 25-75% share of a property, rent is required on the
remaining share. Please see my “shared ownership” page for more information on this. 

​The Mortgage Guarantee Scheme – This was introduced in response to the Help to Buy Scheme and
aims to encourage lenders to offer 95% mortgages again.

An Agreement in Principle is an indication of how much you can borrow from a mortgage lender prior to applying for a mortgage. This isn’t essential, but is often requested by estate agents when making an offer. They’ll give you an accurate idea of how much you’ll be able to borrow based on your individual credit score.

Your credit score can be very important when looking to obtain a mortgage, especially as a first-time
buyer who may be looking for a high loan-to-value mortgage. There are a number of ways to
improve your score, such as:

​- Check that you appear on the electoral roll at your current address

– Check your address on all accounts and correct any mistakes

– If you have credit, remain within 50% of your limits and pay off as much as possible

– Don’t miss or make late payments

– Special credit builder credit cards can help those who’ve never had credit to improve their score