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First-Time Buyer Mortgages: What You Need to Know.

Getting on the property ladder is an exciting milestone, but navigating the world of mortgages for the first time can feel daunting. Don’t worry—this guide is here to give you all the essential information you need to take the first step confidently.

Why Work with a Mortgage Broker?
A mortgage broker can be your greatest ally during this process. Here’s how they can help:

  • Expert Advice: Brokers assess your income, debts, and spending to recommend mortgage options that fit your financial situation.
  • Tailored Support: Unlike lenders tied to a specific institution, brokers provide advice that’s personalised to your needs.
  • Access to Exclusive Deals: Brokers often have access to mortgage deals not available directly to the public, saving you both time and money.
  • Stress-Free Applications: With their expertise in the mortgage process, brokers ensure every step is seamless.
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Getting on the property ladder is an exciting milestone, but navigating the world of mortgages for the first time can feel daunting. Don’t worry—this guide is here to give you all the essential information you need to take the first step confidently.

Why Work with a Mortgage Broker?
A mortgage broker can be your greatest ally during this process. Here’s how they can help:

What Is a First-Time Buyer Mortgage?

First-time buyer mortgages are designed specifically for people who haven’t owned property before—no chain, no property to sell. These mortgages often feature lower deposit requirements, which can help make owning a home more accessible. Some lenders may offer 5% deposit options, however, there are mortgage options available with a 10% deposit or more.

To assist aspiring homeowners, the Government has introduced various schemes that encourage lenders to offer competitive first-time buyer mortgages. These initiatives can help you start your journey toward homeownership with confidence.

How Do First-Time Buyer Mortgages Work?

Here’s a breakdown of how mortgage assessments work:

  • Income Check: Lenders evaluate your annual salary and any other income streams to understand your financial capacity.
  • Outgoing Analysis: Household bills, childcare costs, credit card payments, and other commitments are reviewed to determine affordability.
  • Credit History: Your credit score helps lenders assess your reliability as a borrower.

Most providers set a maximum loan-to-value ratio, meaning the amount they’re willing to lend as a percentage of the property’s value. Unlike standard mortgages, first-time buyer options may have adjusted rates and criteria, as there’s no previous mortgage for comparison.

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Steps to Secure a Mortgage

Before you start viewing properties, consider securing a mortgage agreement in principle. This document shows estate agents that you’re serious about buying and gives you an estimate of how much you can borrow.

Here’s what you’ll need:

  • Proof of Income: Provide payslips or, if self-employed, tax returns for up to two years.
  • Outgoings Evidence: Bank statements to reflect your spending habits and financial commitments.

Mortgage offers typically remain valid for 30 to 90 days, giving you ample time to finalie your property search.

FAQs for First-Time Buyers

How Much Can You Borrow? Borrowing depends on your income and financial commitments. Generally, lenders offer up to four times your annual salary.

How Much Deposit Do You Need? Deposits often range between 10-15%. Certain government schemes may reduce this requirement to 5%.

What Will My Repayments Be? Repayments depend on the amount borrowed, interest rates, and associated fees. Flexible terms allow you to tailor your mortgage plan to suit your budget.

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Risk Warning This quote is for illustration purposes only and does not constitute a formal mortgage offer. The figures provided are based on current interest rates and available products at the time of this illustration and may vary depending on lender criteria, your personal circumstances, and market conditions at the time of application. Please be aware that all mortgage offers are subject to affordability assessments, credit checks, and a formal valuation of the property. Fees, terms, and conditions may apply. For a detailed, personalised offer, further discussions and a full application will be required. Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.

Book a free, no-obligation first-time-buyer mortgage appointment

Offering daytime, evening and weekend appointments at a time convenient for you. You can arrange your appointment with a qualified broker by using our online diary or calling us on 01772 846147.

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A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

You may have to pay an early repayment charge to your existing lender if you remortgage.