When buying a home most of us need to borrow money. This loan is secured on the property you are buying and should you fail to stick to the terms agreed it’s possible that the mortgage lender will take possession and then sell the property to pay off what is owed.
First-time buyers are new to the housing market and as such it’s generally recognised that they need some help either with raising a deposit or by way of a reduced rate of interest in the first few months or years.
The UK government offer various schemes including a help to buy scheme aimed at those buying their first home or a new home as well as various savings schemes including the Help to Buy ISA Scheme.
First Time Buyer Mortgages usually fall into two categories, namely;
- The repayment mortgage. This is usually a loan taken over say 25 years and repaid (with interest) in equal payments month-on-month. As the sum owed reduces the interest charged slowly reduces meaning that whilst the first few years will see little reduction in the outstanding sum owed, the last 10 years will see large amounts of capital being repaid. At the end of the loan period you will have repaid your loan and own your home outright.
- The Interest-Only Mortgage. This type of loan is, as the name suggests, a loan that you don’t repay until the end of your mortgage term. This reduces your monthly repayment but, at the end of the loan, you will need to repay the loan either from savings, a pension lump sum or even through the sale of your home! The advantage of low initial repayments should be balanced against the fact that you pay more interest over the term of the mortgage as the average outstanding debt remains much higher.
Many mortgage companies and lenders offer first-time buyers incentives and assistance including reduced interest rates and low arrangement fees. Contact Mortgage Required to see how we can best serve your needs today on 01628 507477.
Related articles:
Download our Free First Time Buyers Guide
Recent posts
Autumn Budget 2025 Predictions: Mortgage Market
14 days ago
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
17 days ago
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
6 Aug 2025
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
4 Aug 2025
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
More information
Trusted by
