Can I get a first-time buyer mortgage?

Buying your first home is a big decision. Aside from getting married and starting a family, it’s probably one of the biggest life decisions you will make. Getting your foot on the property ladder can also be daunting. There are so many things to consider, from finding your dream home to getting the right mortgage and making sure you can afford the repayments.

On top of that, you’ll need to save for a deposit, cover any surveys, legal fees or moving costs. And when you do finally move in, there’s your home insurance, furniture and monthly bills to consider. It’s hard to know where to start, but My Mortgage Pro can help. We can connect you with an experienced and trusted expert mortgage adviser to answer any questions and help get the first-time buyer mortgage you need.

What is a first-time buyer mortgage?

When you’re looking to take your first steps on the property ladder, you’ll need a first-time buyer mortgage. In simple terms, a mortgage is a loan that you use to buy a property. Once you’ve agreed a price with the seller, you’ll put down the deposit you’ve saved on it, then take out a mortgage to pay for the rest.

Your mortgage is then repaid, plus interest, in monthly instalments over a set term, usually 25 years. There are many different types of mortgage and to a first-time buyer, these can seem confusing. All mortgages are lent at a set rate of interest and you must pay both back over the term of the loan.

Repayment mortgages allow you to pay back a bit of the mortgage and a bit of interest each month, while with interest-only mortgages, you pay only the interest each month, then pay back the amount you borrowed at the end of the mortgage term. Fixed-rate mortgages are offered at a rate of interest that’s guaranteed to stay the same for a set period. Tracker mortgages track the Bank of England’s base rate of interest and can go up or down, while a discount mortgage sees the interest rate set below the lender’s standard variable rate for a set term.

There is also something called an offset mortgage, which is linked to your savings, which are subtracted from the amount of mortgage that you pay interest on, enabling you to either reduce your monthly repayments or pay off your mortgage early.

How do first-time buyer mortgages work?

There is a wide range of mortgages available, but most lenders view first-time buyers as a riskier prospect than those who have had a mortgage before. A lot of support is available to help people get on the property ladder and access a mortgage that is affordable. As with most mortgages, you will need to satisfy your lender that you will be able to meet your monthly payments and be able to repay what you borrow over the term of the loan.

If you have been able to save a big deposit, it will help, as will getting your parents or other relatives to act as a guarantor. And if you are getting a mortgage with your partner, you may be able to borrow more or get a better interest rate if the amount you are seeking is based on your joint income. When you are shopping around, try not to be swayed by the cheapest interest rates, as they often come with higher fees. Sometimes, a mortgage with a slightly higher interest rate and lower arrangement fee might be cheaper in the long run, so seek professional advice before you take the plunge.

How can I get a first-time buyer mortgage?

When you are ready to take your first step on the property ladder, there are a few things to bear in mind before you apply for a first-time buyer mortgage. First off, do your maths to make sure you will be able to afford not only your monthly mortgage repayments but also all your other outgoings. We’ve listed the things you need to think about when it comes to buying your first home above, but remember you will still have living costs on top of those, which you will need to budget for as well.

Most lenders require a deposit of at least 5% of the property’s value before they will lend to you, but the more you can save in advance, the better as not only will it reduce the amount you’ll need to pay back over the long term, it will also give you access to cheaper interest rates. If all of this seems daunting and you don’t know where to start, give My Mortgage Pro a call.

Contact us for more information about first-time buyer mortgages

My Mortgage Pro is a professional mortgage information service. While we don’t give advice, we aim to provide you with simple, jargon-free, no-nonsense information about first-time buyer mortgages to help you make the right choice. We can also connect you with a specially selected panel of leading mortgage advisers, who are authorised and regulated by the Financial Conduct Authority, who will provide advice tailored to your specific circumstances and help you find the right first-time buyer mortgage, fast.

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