What is a First Time Buyer Mortgage?

If you’re starting your journey to owning a home, you might wonder what a first-time buyer mortgage is. It’s a common question and understanding it is key to getting your foot on the property ladder.

To put it simply, a first-time buyer mortgage is a mortgage specially designed for people buying their first home. Like any other mortgage, it’s a loan that you take out to buy a property. First-time buyer mortgages often come with features that can make the whole process of purchasing a home easier.

Firstly, these types of mortgages may allow for lower deposit requirements. This can be a big help if you’re finding it hard to save a large deposit.

Secondly, first-time buyer mortgages can come with incentives, such as cashback on completion, free valuations or lower arrangement fees. Each mortgage lender will have their own set of offers, so we will work with you to find the lender that suits your needs.

Finally, some lenders offer more favourable lending criteria to first-time buyers. This could include more flexible income assessments or understanding imperfect credit histories.

Remember, while these features can be attractive, it’s essential to consider the overall cost of the mortgage, including the interest rate and any fees when deciding which deal is right for you.

Our team of specialist mortgage advisors are on hand to help you understand the different options and find the best first-time buyer mortgage. We’re here to guide you through the whole process and make your dream of owning a home a reality.

Starting the Process: Let’s Chat

The first thing we’ll do is have a chat to understand your situation and what you’re hoping to achieve. We’ll focus on four main areas:

1. Checking Out Your Deposit

Your deposit isn’t just about how much you can borrow from a mortgage lender. It also affects the mortgage interest rates you can get. So, we’ll start the entire process by looking at how much deposit you have available.

2. Looking at Your Income

A mortgage lender will decide how much they’ll lend you based on a few things, but your income is the main factor. You’ll usually need to show up-to-date payslips if you’re employed and will likely have to provide income proof for the last two to three years if you’re self-employed. Different lenders can offer different amounts, so, as mortgage advisors, we will research and find the mortgage lender that can give you what you need.

3. Understanding Your Outgoings

Next, we’ll look at what you’re spending each month. This includes credit card payments, loan payments, car payments, utility bills, childcare, and daily living expenses. If you can, prepare your last three months’ bank statements so we can go through them together and get an accurate picture of your spending.

4. Reviewing Your Credit File

Last but not least, we’ll check out your credit file. This will help us see if anything might affect your first-time buyer mortgage application. If something needs to be corrected, we’ll advise you on how to improve your situation. First-time buyer mortgages can sometimes be tricky, so ensuring your financial situation is in order is paramount.