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First Time Buyer Mortgages

 
 
 
 

Specialist products, flexible criteria, trustworthy advice.

Struggling to get a first time buyer mortgage with a high street lender?

We understand the challenges that many people face when trying to get on the property ladder, so we’re here to make your first home buying journey easier.

With our range of first time buyer mortgages we can help you unlock the doors to your first home!

Start your home buying journey by calling our specialists on 0800 032 4646 or by emailing us!

Got a question or want to speak to an advisor?

Have a look at our FAQs

Call us FREE on 0800 032 4646 or complete our 'Contact Us' form and we will call you back.

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Loans are secured against property - Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

keys first time buyer mortgages

What is a first time buyer?

 
 
 
 

First time buyers are people who have never owned a residential property before. Therefore, if you have bought or inherited a residential property you will not fall into this category.  

If you’ve owned another non-residential property before, such as a commercial unit, you will still be classed as a first time buyer when you come to purchasing a home.

Although it can be challenging getting accepted, there are many different solutions available that can support you.  

We have a selection of specialist mortgage options available that can help customers with restricted circumstances, who are struggling to get approved with mainstream mortgage providers.

Our solutions range from £40,000 up to £1 million, with flexible repayment terms from 1 to 40 years. There are fixed, variable and interest only options available, meaning that we can find you the right deal for your needs.

How does getting a mortgage work if you’re a first-time buyer?

 
 
 
 

When you’re buying a property for the first time you will need to have a deposit saved, which lowers the financial risk to lenders. 

With a deposit you will be paying for a certain amount of the property upfront, which means that you’ll only take out a mortgage on the portion of the house you haven’t paid for yet.

Due to this, having a bigger deposit means you will need to borrow less money from your lender, which can help you get a better deal.

When the purchase has gone through and your deposit has been taken, you will then be required to make repayments on your mortgage each month until the term has finished.

pound coins first time buyer mortgages

How much deposit do I need for a first time buyer mortgage?

 
 
 
 

Most lenders and banks require a minimum deposit of 5%-10% of the property’s purchase price as a deposit. This means that if you were looking to buy a house worth £200,000, you would need a deposit of £10,000 - £20,000.

In addition to the deposit, you may need additional funds available to cover other costs associated with the purchase such as legal fees, valuation fees and stamp duty.

Getting a large deposit together can lower your monthly repayments and may open up better mortgage deals, so it’s important to try and save up as much as you can.

How much can I borrow with a first time buyer mortgage?

 
 
 
 

Loan sizes are typically based upon your annual salary, but lenders may have different ways of assessing this.

The majority of lenders will let you borrow approximately 4.5 times your salary, which means that if you’re on an annual salary of £30,000 you would be able to borrow £135,000.

There are some lenders who would let you borrow 5 times and in some cases even 6 times your annual salary. To access these types of lenders you would likely need to speak with a mortgage broker.

Lenders may also assess other factors relating to your personal situation, which may impact the amount of money you can borrow. For example, if you have a bad credit history lenders may be more hesitant about how much they lend to you.

If you have tricky circumstances (such as bad credit) that is making it difficult to get accepted with a high street lender, we can help! We have solutions that are designed to assist in more complex situations. 

What government buying schemes can help first time buyers?

 
 
 
 

Buying a home for the first time can be challenging, but you may find the process easier if you use one of the governments buying schemes.

The government introduced these schemes to support people who were looking to get on the property ladder for the first time. These schemes are:

Lifetime ISAs

With a Lifetime ISA, you can get help saving for a deposit. Essentially, you save money into a bank account and the government gives you an extra 25% bonus on top. This bonus is capped at £1,000 per tax year, so the maximum amount you can save in any tax year is £4,000. However some may let you save more than this, but it will not be eligible for the government bonus.

Help to Buy ISA

The help to buy ISA is another scheme you can use to help you save up for a deposit. With this scheme, you can put in a maximum of £200 every month, whereby you will receive a 25% bonus on top from the government. This scheme is however closed to new applicants, so unless you have an existing ISA open you will be unable to get this scheme.

Shared Ownership

Another one of the government’s buying schemes is shared ownership, where you only buy a certain amount of the property. With this scheme, you essentially share ownership of the house with a landlord, so you will get a mortgage on part of the property and you’ll pay rent on the remainder. If you’re struggling to get on the property ladder this scheme can be really useful.

Right to Buy

If you’re living in a council property, the right to buy government scheme could help you. This initiative works by giving people discounts on the price of the council property they are currently residing in. Discount sizes may vary depending on the house and how long you have been at the property.

We have a great range of lenders who can support customers that are looking to buy a home using these schemes. So if you’d like to understand your options call our friendly experts on 0800 032 4646 or email us to enquire.

How do I apply for first time mortgages?

 
 
 
 

The application process for our specialist mortgage products is very simple. Our three main steps below will guide you through the process:

Contact our experts by calling 0800 032 4646 or send us an email to express your interest and enquire.

We'll collect a few quick details from you, which will inform our product search and help us to match you with the best deal.

Once we've found the right deal we'll call you and allow you to make the final decision on whether it's right for you.

Frequently Asked Questions - First Time Buyer Mortgages

 
 
 
 

What should I do before I get a first time buyer mortgage?

Getting a house for the first time is a big step, so it’s important that you think about it carefully. Here’s some key things you should consider before taking the leap:

  1. Make sure you consider whether it’s definitely the right time for you to buy your first home. It’s important that you think about your finances and your future plans to ensure they align with this purchase.
  2. Assess your credit score and make sure all the information is accurate.
  3. Determine a budget for the property you want to buy, but make sure you factor in all the other costs that can be involved with buying a house too.
  4. Get your documents updated and organised, so that when you come to apply you have everything ready in advance.

Do first time buyers pay stamp duty?

One of the great benefits of first time home buying is that you’re exempt from stamp duty tax if the property you’re purchasing is valued under £300,000.

If the property you’re looking to buy is valued above £300,000 then you will start having to pay stamp duty. You will be required to pay 5% on the portion of the property that is over the £300,000 threshold. However, any properties that are valued over £500,000 will not get any type of relief.

What is a gifted deposit?

It is money that has been given to a person to put towards their house deposit – this is most commonly from a family member.  The most important part is that the money was given as a gift and therefore the person is not expected to repay it at any point.

Is it easy to get a mortgage with a gifted deposit?

Some lenders and banks do not accept these deposits or require you to have still saved the 5%-10% deposit in addition to any gifted deposit, so it can be a bit more challenging to get accepted when using one.

Despite this, there are still lots of specialist lenders who will happily assist with gifted deposit mortgages, so it is still entirely achievable.

Can I get a first time buyer mortgage and rent the property out?

Unfortunately, you can’t rent out a residential property, as it is against the terms of your mortgage offer. Instead you will need to get a buy to let mortgage in order to rent a property out.  

What other costs might be involved when buying your first home?

Buying a house is one of the biggest purchases you can make, and it’s not just the mortgage that costs you.

On top of your deposit and monthly repayments, there are lots of other extra costs involved including:

  • Booking or arrangement costs
  • Broker and lender fees
  • Valuation charges
  • Stamp duty tax
  • Survey costs
  • Legal fees

When you’re looking to buy a home it’s therefore important that you factor these extra costs in and make sure you have enough money to cover all the relevant expenses. 

When should I apply for a first time mortgage?

There’s never a right time to apply for a mortgage, instead you should be guided by your own needs and plans.

If you’ve found your dream house and have the money available to put a deposit down, then you might think it is a good time to apply. But, if you’re still trying to find a property you like or want to save up more money for a deposit, then you might want to wait until everything falls into place.

Can I buy a house if I have bad credit and I am a first time buyer?

Yes, you can still buy a residential property for the first time even if you have bad credit.

However, it’s important to be aware that your options may be more limited in this situation, as some lenders may be reluctant to let you borrow from them with a bad credit history. Instead, you may need to look for alternative lenders who specialise in helping customers with tricky circumstances.

We use a panel of specialist lenders who focus on helping customers with more complex needs and backgrounds, so we may be able to assist in scenarios where bad credit is involved.

What is the qualifying criteria?

The main requirement you’ll need to fulfil to be eligible for these products is that you’ve never owned a residential property before.

There may be additional criteria you need to satisfy but this can vary depending on which provider you go with. Therefore, some lenders may be stricter than others. 

If you’re unsure where you’d get accepted then it could be worth getting help from a broker, as they have a selection of lenders to pick from and so they’ll know where you’re likely to get approved.

Is first time home buying difficult?

Generally speaking it isn’t difficult. Lenders, brokers and banks are used to helping people in these situations on a daily basis, so it’s quite a straightforward process for them.

However, it can become more complicated if you have complex circumstances such as bad credit or low income. In these scenarios it may be more of a challenge to get accepted, so you may need to get help from a specialist mortgage broker or lender.

Where can I find the best mortgages for first time buyers?

Going directly to a lender or bank can be really beneficial if you’ve found a product that’s right for you. However, if you’re unsure about what you need and are wanting to shop around to find the best deals then it may be worth getting help from a mortgage broker.

First time buyer mortgage brokers have access to a variety of different lenders, so they can search through a range of products to find the best deal they have available for your specific circumstances.

Useful guides and blogs

 
 
 
 
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