top of page
home keys

First Time Buyer Mortgage

Are you looking for an award winning independent mortgage broker for first time buyers?

Mortgages for First Time Buyers

Isn't owning a home one of your biggest dreams? As a first-time buyer, you're on the brink of making this dream a reality. But you're likely wondering how to navigate the maze of mortgage options available.

 

It's crucial to understand the intricacies of mortgages, from the types available to assessing your financial position, credit scores, deposit amounts, and much more. This knowledge can mean the difference between a dream come true and a financial nightmare.

 

As we explore the world of first-time buyer mortgages together, you'll be equipped with the essential tools to make an informed decision. But what if you could avoid common mortgage pitfalls and make the process smoother?

 

Well, stick around for some invaluable insights.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

What should I consider before applying for a mortgage?

You're ready to take that first step onto the property ladder, but where do you start with getting a mortgage as a first-time buyer?

 

It's not as daunting as it seems. We're going to walk you through the key considerations you need to make before applying for your mortgage.

How to get a mortgage first time buyer

Speak With a Mortgage Broker

During your first meeting with us, you will discuss your financial situation and goals for homeownership. We will ask questions about your income, expenses, and credit history to determine what type of mortgage you may qualify for. They will also explain the different types of mortgages available and answer any questions you have. By the end of the meeting, you should have a better understanding of the mortgage process including how much you can borrow and leave with a list of documentation we will need to obtain your mortgage agreement in principle.

Find Your Ideal Home

Congratulations! Your mortgage has been agreed in principle, giving you the green light to start your search the perfect home. With this important step taken care of, you can focus on finding the property that meets all your needs and desires. 

Once you have found your home, check back in with us, we will make sure it forms suitable security for the lender and can give information on prices and housing market  trends before you submit your offer.

We're here to help you make your dream a reality

Get A Mortgage in Principle

A mortgage agreement in principle is a document that shows how much money a lender is willing to lend you to buy a property. It's important to get this before looking for houses because it gives you an idea of how much you can afford to spend on property. This can you narrow down your search and avoid disappointment later on. Additionally, having an agreement in principle can make you a more attractive buyer to sellers, as it shows that you are serious have already taken steps towards securing financing.

Apply For A Mortgage

As industry professionals we are experts at managing the entire mortgage application process, from start to finish. We'll gather all the necessary documents and information required by the lender, submit the application, and follow up with the lender to ensure that the process runs smoothly. 

That's not all - we'll also manage the process through receipt of house valuation, mortgage offer issued, and finally, you collecting your keys.

With us on your team, you can be confident that your home buying journey will be stress-free and successful. 

Image by Kenny Eliason

Mortgage Capacity Report

Following our initial appointment we will provide you with a comprehensive mortgage capacity report.

This FREE report will outline the summary of out meeting, so you know we have understood your circumstances perfectly.

 

We will give you a borrowing range, including your maximum, minimum and the average. So you can begin your house search with confidence.

It will provide an overview of current interest rates and likely monthly repayments and outline potential other costs you will need to factor in, such as conveyancing, valuation fees, stamp duty and mortgage product fees.

In submitting this form I agree I have read the privacy policy

Thanks for submitting!

First Time Buyer Benefits

If you're considering buying a home for the first time, it's important to know that you may be eligible for some special benefits that can help make the process easier and more affordable. These benefits can include things like first time buyer schemes, which can provide financial assistance or help with finding the right property. You may also be eligible for cashback, free valuations, and legal assistance, all of which can help you save money and avoid common pitfalls. To learn more about benefits you may be eligible for and how we can help you take advantage of them, please don't hesitate to contact us.

Image by Towfiqu barbhuiya

Mortgages for first time buyers

If you're a first time buyer, you'll be pleased to know that there are many lenders out there who offer exclusive mortgage rates with a range of incentives. These incentives can include no fees, free valuation, help towards conveyancing costs, or simply the most suitable rates available for first time buyers. To ensure that you get the best deal possible, we encourage you to get in touch with us today to discuss your specific and preferences. Our team of experts will take the time to understand your unique situation and confidently factor them into our recommendations.

Cashback

Mortgage Cashback

 You may be eligible for cashback on certain mortgage products. This means that upon completion of the mortgage process, you could receive a sum of money that can be used for anything you like, such as furnishing your new home or covering the cost of your insurance premiums. If cashback is something you would like as part of your mortgage please let us know in your consultations so we can factor this in to our advice.

Date Stamps

First Time Buyer Stamp Duty

When it comes to purchasing a property, first-time buyers in England and Scotland can take advantage of stamp duty benefits that can help reduce the overall cost of buying a home. In England, first-time buyers are eligible for a stamp duty exemption on properties worth up to £425,000. In Scotland, first-time buyers can benefit from a Land and Buildings Transaction Tax (LBTT) exemption on properties worth up to £175,000. These benefits can make it easier for first-time buyers to get onto the property ladder and achieve their homeownership goals.

  • What Is the Eligibility Criteria for Applying for a Fixed Rate Mortgage?
    To qualify, you'll need a good credit score, stable income, and a low debt-to-income ratio. Lenders also consider your employment history. It's not just about net worth, but your ability to make consistent payments.
  • Can I Switch to a Fixed Rate Mortgage From A Variable rate mortgage.
    Yes, you can switch from a standard variable rate to a new fixed rate. You can do this through requesting a remortgage, which is moving your mortgage from one lender to another. You can explore this more on our remortgage page. Alternatively it may be financially beneficial to remain with your current lender and seek a new product with them.
  • Are There Any Penalties for Late Payments on Fixed Rate Mortgages?
    Yes, there can be penalties for late payments. It's important to review your mortgage offer carefully, as terms may vary. If you are worried about your finances or struggling to meet your mortgage payments it is always advisable to contact your mortgage lender as soon as possible. Remember, your mortgage is secured against your home (or other property) and failing to maintain your payments can result in repossession.
  • Can I Remortgage Before My Fixed Rate Ends?
    Yes, you can remortgage before your current fixed rate deal ends. However, you'll likely face early repayment charges. It's crucial to weigh the costs of remortgaging against the potential savings. Your early repayment charges will be available to view on your mortgage offer, by speaking to your lender or liaising with your mortgage broker who can obtain these for you.
  • Are all mortgage brokers whole of market?
    When it comes to the range of products they offer, not all mortgage brokers are whole of market. Some brokers have limited access, which means they can't provide you with all the options that might be beneficial for you. They might only be able to offer the products from a select group of lenders. In contrast, whole of market brokers have access to a wider range of products from various lenders. They aren't tied to any specific lender, allowing them to provide you with the most suitable mortgage deal that fits your individual needs. Here's a quick rundown of what to expect from both types: - Limited access brokers mightn't provide a full spectrum of options, which could cause you to miss out on a better deal. - Whole of market brokers can offer a greater variety of mortgage products, increasing your chances of finding the perfect fit. - Brokers with limited access may speed up the mortgage process, but at the potential cost of a better deal. - Whole of market brokers might take longer to finalise your mortgage due to the wide range of options they explore, but it's worth it if you end up with a better deal.
  • Are there any risks to not getting advice from a broker?
    Skipping professional advice from a mortgage broker could expose us to certain risks. It's easy to fall into the trap of thinking we've got it all figured out. After all, we've got countless online resources at our disposal. However, without a broker's expertise, we're likely to encounter some challenges. There are several potential pitfalls we could stumble into: Lack of Access to All Options: Brokers have access to a wider range of mortgage options than we do as individuals. Without their guidance, we might miss out on a better deal. Risk of Overpaying: Without a broker's knowledge of the market, we could end up accepting a mortgage with higher interest rates or unfavorable terms. Complex Process: Navigating the mortgage process can be complex. A broker's expertise can streamline the process and reduce the risk of errors. Time-consuming: Searching for the right mortgage, negotiating terms, and handling paperwork can be time-consuming. Brokers can handle these tasks on our behalf, freeing up our time Regulatory Protection: If you do not take advice and the mortgage later turns out to have been unsuitable for you then you do not receive the same levels of consumer protection offered through the Financial Conduct Authority, Financial Ombudsman and Financial Services Compensation Scheme
  • When is the best time to get a mortgage broker?
    Given the potential pitfalls of navigating the mortgage process without professional guidance, it's crucial to determine the ideal timing to bring a mortgage broker into the picture. We believe the best time to engage a broker is at the very beginning of your home buying journey. Before you even start looking at properties, a broker can provide a clear understanding of your borrowing capacity, which can significantly streamline your property search. They'll assess your financial situation and give you a realistic idea of how much you can borrow. This can prevent the disappointment of falling in love with a property that's beyond your budget. Furthermore, when you're ready to secure your mortgage, a broker's expertise can prove invaluable. They can negotiate on your behalf, potentially securing better interest rates or terms than you could achieve alone. They'll also guide you through the paperwork, ensuring all necessary documentation is correctly completed and submitted. In essence, the earlier you involve a mortgage broker, the smoother your property purchase journey can be. They'll help you make informed decisions from start to finish, providing a pivotal role in securing your dream home.
  • What questions should I ask my mortgage broker?
    To ensure we're getting the best possible deal, it's crucial you ask your mortgage broker the right questions. First, you should ask about their experience and qualifications. It's important they've a deep understanding of the industry and the necessary credentials to back that up. Next, you must inquire about the types of mortgages they offer. Not all brokers offer all types of mortgages, so we need to ensure they can provide the home loan that suits our needs. You should also ask about fees. While we're often focused on the interest rate, it's just as crucial to understand all the fees involved.
  • Do you charge a fee?
    We charge a fee for our services, of £425, because we are confident we offer invaluable services to our clients. We act as the intermediary between yourself, as the borrower and the mortgage lender. In addition to this we will liaise with the estate agents involved and your conveyancers to speed the process along. As we are whole of market we have access to a wide range of lenders and mortgage products, including those that are not widely advertised. This means that we can often find loans with lower interest rates and better terms than borrowers would be able to find on their own. Overall, however, many clients as is seen from our reviews, tell us that the fee for our services was worth the payment for the time, lack of paperwork and stress we remove from the process. Obtaining a mortgage whether a first time buyer or an experienced portfolio landlord can be a stressful time, as our clients our goal is to remove this for you and make the process as streamlined as possible.
  • What is a first time buyer
    A first time buyer is a person who is purchasing a home for the first time. Many lenders offer special programs and incentives for first time homebuyers, such as a smaller deposit, fee incentives and better mortgage rates. In addition to this as a first time buyer you may be eligible to use your help 2 buy ISA's as part of your deposit. For first time buyers, the threshold for paying stamp duty is much higher. There are exclusions from being a first time buyer to be mindful off, typically for instance if you are buying with a partner who has owned a home before then you would normally not qualify for these benefits.
  • First Time Buyer in Scotland
    We offer a wide range of services to help first-time buyers across Scotland, including those in Glasgow, Edinburgh, Carlisle, Dumfries as well as other areas, to secure a mortgage. Our highly experienced mortgage brokers will work closely with you to understand your unique circumstances and help you navigate the complex mortgage application process. We can advise you on the most suitable mortgage product to fit your needs, provide you with expert guidance on how to improve your credit score, and help you understand how much you can borrow. Additionally, we offer support with the paperwork involved in the mortgage application process. Our goal is to make the process as stress-free as possible while ensuring that you secure the right mortgage product at the right rate for you. We understand that buying your first home can feel daunting, which is why our approach is focused on providing personalised guidance and support throughout the process. With our expert knowledge of the Scottish property market and close relationships with lenders, we are ideally placed to help you secure the right mortgage for your needs. We are committed to providing transparent advice and excellent customer service, and we work hard to ensure that our clients come away feeling confident and ready to take the next steps in their homeownership journey.
  • Do first time buyers pay stamp duty?
    Yes and no. Stamp duty is a tax paid on residential property purchases over a certain value in England and Northern Ireland. At present you can buy your first home up to a value of £425,000 without paying any stamp duty on this. As the rates of stamp duty can change before proceeding we would always recommend you visit the governent site to calculate your own stamp duty on potential properties to avoid incurring large unexpected bills later down the house buying process https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
  • Does a mortgage decision in principle guarantee a mortgage?
    No, a mortgage decision in principle is not a guarantee that a mortgage will be approved by the lender. A decision in principle, also known as a mortgage promise or agreement in principle, is a preliminary assessment of whether someone is likely to be approved for a mortgage, based on their income, credit score, and other financial factors. The assessment is typically based on a soft credit check, which does not leave a footprint on the person's credit report. While a decision in principle can be useful for indicating a person's borrowing power and giving them an idea of what they can afford, it is not a formal offer of a loan. A full mortgage application would still need to be made and assessed by the mortgage lender, who would consider additional information such as the property being purchased, the deposit amount, and the borrower's employment status. It's important to note that the decision in principle is not a guarantee of the interest rate, as this will depend on the lender's assessment of the full mortgage application. Additionally, a decision in principle is typically valid for a limited period of time, and if too much time has passed between the decision in principle and the full application, the lender may need to reassess the borrower's financial situation.
  • Do First Time Buyers Pay Stamp Duty in Scotland?
    In Scotland, first time buyers are exempt from paying the Land and Buildings Transaction Tax (LBTT) on properties up to £175,000. However, if the property is over £175,000, first time buyers will be required to pay LBTT on the portion of the property price that exceeds £175,000. We can help first time buyers understand their stamp duty obligations and guide you through the process of purchasing their first home in Scotland. We will provide personalised advice and support to ensure that first time buyers have a smooth and stress-free home buying experience.
  • What are the eligibility criteria for applying for a UK tracker mortgage?
    To be eligible for a tracker mortgage, you generally need to meet certain criteria. This includes having a good credit score, a stable income, and the ability to provide a deposit of at least 5% of the property value. The lender will assess your income and outgoings to determine how much they are willing to lend you. You'll need to provide documents such as payslips, bank statements, and proof of ID and address. The terms and conditions of each UK tracker mortgage may differ, and lenders may also consider factors such as age, employment status, and the property type and location.
  • Can a Tracker Mortgage Be Transferred to Another Property?
    Yes, you can transfer a tracker mortgage to another property. It's called 'porting'. You'll need to meet your lender's criteria for the new property and may have to pay a fee, so it's worth checking. Please refer to our homemover page for more information on porting.
  • What Happens to My Tracker Mortgage if the Bank of England Base Rate Drops to Zero?
    If the Bank of England base rate drops to zero, your tracker mortgage rate will also decrease. You'll see a reduction in your monthly payments as they're directly linked to the base rate, remember however that your mortgage tracker may have a collar linked to it. A mortgage tracker collar is a limit below which your rate will not decrease regardless of what happens to the Bank of England base rate. Full details on this can be found within our Tracker Mortgage Page
  • How Does the Early Repayment Charge Work With a UK Tracker Mortgage?
    If you decide to repay your tracker mortgage early, you'll usually face an early repayment charge. It's typically a percentage of the loan you're repaying, but the exact amount can vary based on your lender's terms, remember some lenders tracker products are available with no early repayment charges.
  • What happens to my tracker mortgage if the Bank of England base rate changes?
    Tracker mortgages are directly tied to the Bank of England (BoE) base rate, meaning that any changes to the base rate will affect the interest rate on your mortgage. If the BoE base rate increases, the interest rate on your tracker mortgage will also increase, which means that your monthly payments will also increase. On the other hand, if the BoE base rate decreases, so too will the interest rate on your tracker mortgage, ultimately resulting in lower monthly payments. For example, if you have a tracker mortgage with an interest rate that is set at 2% above the BoE base rate, which lets say is 3%, then you would pay a rate of 5%. Let's pretend the BoE base rate increases to 4%, you would now pay a rate of 6%, as the example product above is BoE base rate + 2% Conversely, if the BoE base rate decreased from 3% to 2%, your interest rate would decrease to 4%, as the product example above is BoE base rate + 2%

First Time Buyer Frequently Asked Questions

bottom of page