first time buyers
We navigate the Mortgage Maze to get you the right deal for you.
Thinking of buying your first home?
Buying a home is a major milestone, and obtaining a mortgage is a key part of the process. As a first-time home buyer in the UK, you have a variety of mortgage options to choose from. In this article, we'll provide an overview of these options and offer tips on how to navigate the mortgage process.
Types of Mortgages
One option for first-time buyers is a fixed-rate mortgage. As the name suggests, the interest rate remains the same for the duration of the loan, which can be for a period of two, three, or five years. This can provide stability and make budgeting for your monthly mortgage payments easier. However, it's worth noting that fixed-rate mortgages may have higher interest rates compared to variable-rate mortgages.
On the other hand, a tracker-rate mortgage has an interest rate that can fluctuate over time. This type of mortgage is typically tied to the Bank of England base rate (but not always), so if the base rate goes up, so does the interest rate on your mortgage. While variable-rate mortgages can be more unpredictable, they often have lower interest rates and can save you money in the long run.
First-time buyers may also want to consider a tracker mortgage. A tracker mortgage is a type of variable-rate mortgage that is pegged to the Bank of England base rate. This means that the interest rate on your mortgage will move in line with the base rate. Tracker mortgages can be a good option because they often have lower interest rates than fixed-rate mortgages.
In addition to these options, first-time buyers may be eligible for government-backed mortgages such as Help to Buy and Shared Ownership. Help to Buy is a government scheme that provides a loan for a deposit on a new-build home. The loan is interest-free for the first five years and is available to both first-time buyers and homeowners looking to move. To be eligible for the Help to Buy scheme, you must be a UK resident and be purchasing a home that costs less than £600,000.
Shared Ownership is another government scheme that allows first-time buyers to purchase a share of a home and pay rent on the remaining share. This can be a good option for those who are unable to afford a mortgage on a full-priced home. To be eligible for Shared Ownership, you must be a first-time buyer or a homeowner who is unable to afford a home on the open market, and your household income must be less than £80,000 per year (or £90,000 in London).
Tips for Obtaining a Mortgage
When it comes to obtaining a mortgage as a first-time buyer, it's important to:
- Shop around and compare different mortgage lenders to find the best deal
- Get pre-approved for a mortgage before you start looking for a home
- Keep an eye on your credit score and work to improve it if necessary
- Pay off as much debt as possible before applying for a mortgage
- Budget for closing costs in addition to your down payment and mortgage
As a first-time home buyer in the UK, you have a variety of mortgage options to choose from. It's important to carefully consider your options and find the mortgage that works best for you. By following these tips and being prepared, you can successfully navigate the mortgage process and achieve your dream of homeownership.
What are the types of
Cash / Savings / ISA / LISA
There are many different type of savings accounts available to save for your first home. Some of these also come with government "top ups". The bigger your deposit, the less interest you are likely to pay.
Family Gifted Deposit
The bank of Mam & Dad has never been more popular. You can use cash (and equity) to secure your first home. We can also consider deposits from those we are unrelated to you, such as friends and employers.
If your landlord is selling up and is willing to give you a discount on what the property is worth, you may to able to use this as your deposit. Speak to us to find out how this works.
Help to Buy Shared Ownership / Equity
There are a number of government schemes available to help you on to the property ladder. This can sometimes be very complex. Speak to us to talk through your options.
Ready to talk to an adviser and take the stress out of buying your first home?
how much can you borrow?
There is no simple way to calculate this. You will probably find lots of different "Mortgage Calculators" online but these can only provide you with their "best guess". Each lender has their own way of calculating what you can borrow and can it vary quite considerably between lenders. There are a few things you can do to make sure you can borrow as much as possible.
Maximum Borrowing Tips
Follow these tips to increase your chances of borrowing the loan amount you need
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
WHY USE A MORTGAGE ADVISER?
Dedicated Professional Advice
You will have a named adviser who will get to know you. They are experienced and qualified to provide you with all the help and advice you need throughout the process.
We deal with the banks
No one likes having to deal with the banks. They will almost always ask you questions during your application and we are ideally placed to answer them. Over 15+ Years of experience and 1000's of Mortgage Applications has helped us do this very effectively.
You will never become a number, not like dealing with a bank directly. Having to explain yourself over and over again to whoever picks up the phone. You will deal with us directly, we do all of the heavy lifting.
No waiting on Hold
Our Average hold time is less than 10 seconds. We spend hours on hold to the banks so you don't have to. This could have you hours of time.
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