First Time Buyer Mortgages

First Time Buyer Mortgages offer an exciting opportunity to finally become a homeowner. But this also means there’s a lot more to consider when it comes to financing your purchase.

What is classed as a First Time Buyer

A First Time Buyer is an individual who has never owned a property before. This means they have not taken out a mortgage loan, invested in real estate, or otherwise lived in their own residence for any extended period of time. First Time Buyers can include those who are just starting to enter the housing market and are looking to purchase their first home, or those who are looking to purchase a property for investment purposes.

How much can I borrow as a first-time buyer?

In order to acquire a property, first-time buyers are frequently asked to put down a deposit. This deposit is usually 10% of the purchase price. But in some cases, a deposit of 5% may be sufficient – especially if the buyer is taking out a Help to Buy mortgage.

Once you have saved for and found the perfect home, it is important to get a mortgage in place so that you can put an offer down on the property. This is where we come in.

The amount you can borrow may also depend on which First Time Buyer Mortgage you choose. Some lenders may have stricter borrowing requirements for certain types of mortgages, so it is important to research the different options and speak with a qualified mortgage brokers before making any decisions.

When should I apply for a first-time mortgage?

When considering applying for a First Time Buyer Mortgage, it is important to consider when the best time is to apply. First-time buyers should be aware that mortgage applications take time and the earliest they can apply is three months before they are ready to buy.

It is important to note that lenders have different criteria when it comes to First Time Buyer Mortgages, so it is essential to research the different options available and speak with a qualified mortgage broker before making any decisions.

Having this knowledge in hand will make the process of applying for First Time Buyer Mortgage much smoother and simpler. So take your time to ensure you are getting the best deal possible.

Which type of first-time buyer mortgage is best for me?

There are several types of First Time Buyer Mortgages available, depending on your individual circumstances. You could be eligible for an Interest-Only mortgage which allows you to pay only the interest on the loan for an agreed period of time, or you could opt for a Fixed-Rate mortgage which allows you to lock in your interest rate for the duration of the loan. Other First Time Buyer Mortgages include Variable Rate, Tracker and Offset mortgages. It is important to talk to a qualified financial advisor before making any decisions about which First Time Buyer Mortgage is best for you.

Fixed-rate mortgages

Fixed-rate mortgages offer borrowers a set interest rate for the entire duration of the mortgage, which can be helpful in budgeting and planning for the future.

However, if interest rates drop during the term of the mortgage, the borrower would be stuck paying the higher, fixed rate.

Variable-rate mortgages

Variable-rate mortgages have an interest rate that can change over time, which means that your monthly payments could go up or down. This type of mortgage may start with a lower interest rate than a fixed-rate mortgage, but there is more risk involved since the payments could increase significantly if rates rise.

Standard variable rate mortgage (SVR)

At the lender’s basic rate of interest. SVRs don’t have discounts or lower interest rates, and the lending institution may alter the rate of interest they charge.

Tracker mortgages

Tracker mortgages are another type of mortgage that is popular with first-time buyers. These mortgages have a fixed interest rate for a certain amount of time, but the interest rate will vary depending on the Bank of England Base Rate.

This type of mortgage can be helpful for first-time buyers because it offers some predictability in terms of monthly payments, but it also allows the borrower to benefit if interest rates drop during the term of the mortgage.

Discount rate mortgages

Discount rate mortgages offer a discounted interest rate for a certain period, usually two to five years. This type of mortgage can be helpful for first-time buyers because it offers a lower interest rate and monthly payments for a set period of time.

However, after the discount period ends, the interest rate will usually increase to the lender’s standard variable rate.

Capped rate mortgage

A capped rate mortgage is a type of mortgage that has a maximum interest rate that it can reach. This type of mortgage can be helpful for first-time buyers because it offers protection against interest rates rising to a certain point.

However, if interest rates do drop below the cap, the borrower would still be stuck paying the higher, capped rate.

Adjustable-rate mortgage (ARM)

First-time buyers may also want to consider an adjustable-rate mortgage (ARM). This type of mortgage has an interest rate that can change over time, which means that your monthly payments could go up or down.

However, if interest rates rise during the term of the mortgage, the borrower would be stuck paying the higher rate.

Compare First time buyer mortgages

Our mortgages advisors are on hand to help compare the best first time buyer mortgages available to get you the best rate available on the market. We have access to exclusive deals from top mortgage lenders so you are in good hand with us.

What else should I consider when getting a mortgage for my first home?

When getting a mortgage for your first home, there are many things to consider. First and foremost, it’s important to understand the different types of mortgages available and how each one works. As a first-time buyer, you may want to consider fixed-rate mortgages. Fixed-rate mortgages offer the security of knowing that your mortgage payments will remain the same throughout the life of your loan.

You should also consider how long you plan to be in the home and whether you want to pay off your mortgage early. Additionally, First Time Buyers should research different lenders’ rates and fees so that they can get the best deal possible.

Finally, First Time Buyers should speak to a qualified mortgage broker who can help them understand the different First Time Buyer Mortgages available and guide them through the process.

We have our online guide to help calculate your mortgage and can book an appointment with our mortgage advisors to get started with your first time buyer mortgage application.

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