First Time Buyer Mortgage
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First Time Buyer Mortgage
Charlie Huxley explains how the mortgage process works for First Time Buyers.
WHAT ARE THE TYPICAL REQUIREMENTS TO APPLY FOR A MORTGAGE AS A FIRST TIME BUYER?
As a First Time Buyer, you’ll need to meet certain lending criteria to apply for a mortgage. These requirements vary between all the different lenders, but the main things are your deposit amount and proof of income.
The proof of income shows your affordability. Lenders want to be confident that you can afford the repayments.
One of the great advantages First Time Buyers have is that they don’t have anything to sell, so they are in a proceedable buying position – that’s music to any estate agent’s ears.
However, it’s even more important for a First Time Buyer to be organised and have an Agreement in Principle before viewing properties. It can be quite daunting, for most buyers, not just first timers.
We make sure that all of our clients are in the strongest position possible – and we’ve managed hundreds of clients through this process. We’ll make sure everyone’s goals are met.
WHAT IS THE MAXIMUM AMOUNT THAT CAN BE BORROWED FOR A MORTGAGE AS A FIRST TIME BUYER? WHAT’S THE MINIMUM DEPOSIT FOR A FIRST TIME BUYER?
The minimum deposit amount is 5%. So that’s a 95% Loan to Value mortgage. The bigger the deposit, the easier it is to get a mortgage – and the better rates that you can get because you’re seen as a lower-risk customer.
WHAT INTEREST RATES ARE AVAILABLE ON A MORTGAGE FOR A FIRST TIME BUYER?
Some lenders have exclusive rates for First Time Buyers, which help keep the monthly mortgage costs slightly lower. There are also some products offering higher affordability for First Time Buyers, meaning you can borrow slightly more. It all depends on your situation and if you qualify for those offers.
WHAT ARE THE PROS AND CONS OF FIXED VERSUS VARIABLE INTEREST RATE MORTGAGES FOR FIRST TIME BUYERS?
This is a really important conversation to have with anyone looking to purchase their first home. It’s one we make sure all clients completely understand and are confident about.
With a fixed mortgage product, your interest rate is fixed for normally two or five years. This way a borrower knows exactly what their mortgage payments will be for that fixed period of time. It can be really helpful because it gives you security and makes it easier to budget.
A variable interest rate can offer more flexibility in a couple of different ways. However, it comes at a price: less security. These variable products usually have no early repayment charges, so you can pay off the entire balance or reduce the mortgage without being charged by the bank.
The interest rate on a variable mortgage is usually linked to the Bank of England base rate. If this goes down, your mortgage payments will reduce. The negative of this is that if the Bank of England base rate goes up, your payments will also increase.
WHAT GOVERNMENT SCHEMES ARE AVAILABLE TO HELP FIRST TIME BUYERS?
There are a couple of government schemes available. The most commonly used is the Lifetime ISA. These were created to help people get on the property ladder.
It’s a savings pot you can put money into and, once you’re ready to buy a home, you can gain an additional 25% from the government as a bonus. It’s paid once you reach the completion stage of your property purchase [information correct at the time of recording in July 2025].
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We won’t only guide clients through the mortgage process but offer long lasting professional relationships for any future needs or advise.
WHAT DOCUMENTS DO I NEED TO GET PRE-APPROVED FOR A MORTGAGE AS A FIRST TIME BUYER?
The documents needed for a First Time Buyer are the same as for someone who already owns a property and is moving.
All lenders need confirmation of your ID, income and outgoings as standard. We’ll manage this for all of our customers, making sure that we’ve got everything upfront so information isn’t asked for in dribs and drabs.
We also go through all the documents and get any questions out the way, to guarantee the smoothest possible mortgage application process.
WHAT ARE THE MAIN STEPS IN APPLYING FOR A MORTGAGE AS A FIRST TIME BUYER?
The most important thing is to speak to us as early as possible in the process, because we’ll guide you through it from start to finish.
It’s very important to have an Agreement in Principle before you start viewing properties. This shows to the estate agent and the property seller that you are in a really strong position to purchase a property, that you’re organised and a serious buyer.
An Agreement in Principle is a thumbs up from the bank that you can afford the mortgage you’re looking for. It’s subject to a couple of things – confirmation of your income and outgoings, and all banks will want to value the property.
WHAT ARE THE MOST COMMON MISTAKES TO AVOID WHEN APPLYING FOR A MORTGAGE AS A FIRST TIME BUYER?
Often the process can be rushed. First Time Buyers think they can just go out there and view properties, presuming that they’re in a really great position. But I can’t stress enough how important it is to be organised.
If you find a property you love, there might well be three or four people that also want to put offers on it. Normally it’s the one that’s the most organised and in the best position that wins.
CAN I QUALIFY FOR A MORTGAGE AS A FIRST TIME BUYER WITH BAD CREDIT?
Yes, you can. It does make things a bit more complicated, and the adverse credit you’ve got or errors on your credit report would very much influence the lenders we can use for you.
That’s another area where value is added by a broker. It may well be that some of the high street lenders can’t offer you a mortgage at that time, but some really great building societies can.
Essentially, you can get a mortgage with bad credit, but you may well be restricted in the lenders that you can use.
WHAT HAPPENS IF I MISS A MORTGAGE PAYMENT AS A FIRST TIME BUYER?
The idea is definitely not to miss any mortgage payments. However, if you do miss one, it is easy to rectify.
At Huxmor we can help. We’ll just put your mind at ease and call that particular lender to explain what’s happened. Just making that missed payment up over time should suffice.
CAN I GET A BUY TO LET MORTGAGE AS A FIRST TIME BUYER?
You can. It’s called being a First Time Buyer/First Time Landlord. There are some really great Buy to Let lenders and banks that offer these mortgages.
However, you are slightly restricted. Again, some high street banks may well not be able to help. But you should be able to purchase a Buy to Let and hopefully on good interest rates.
HOW CAN A MORTGAGE BROKER HELP ME WITH MY FIRST TIME BUYER MORTGAGE APPLICATION?
It goes back to making sure you’re organised and we’ve got all the information up front. Then we can make sure that the mortgage application goes as smoothly as possible, and put you in the best position to get the keys to that new home.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.