Getting A Mortgage As A First Time Buyer

Buying your first home comes with a mixture of emotions. Owning a property is a really exciting prospect, but the practicalities associated with actually buying a property can be quite daunting. Understandably, most first time buyers feel quite overwhelmed when they start looking into getting a mortgage and there is a lot to get your head around. In an attempt to help anyone who is completely new to homeownership, below we have put together a guide covering the basics you need to know about getting a mortgage as a first time buyer. 

The pros and cons of being a first time buyer 

There are a number of advantages to being a first time buyer, so let’s get the disadvantages out of the way first - although there really aren’t many of them. One thing that you may notice as a first time buyer is that your credit score could do with some improvement. Previously having a mortgage can actually help to increase your credit score, when you make all required repayments on time, and having a good credit score can help you get a competitive mortgage. 

Thankfully, there are things you can do as a first time buyer to boost your credit score before you apply for your first mortgage and you can still get a good mortgage deal. It is beneficial to find out what your current credit score is and then spend some time trying to increase this, doing so could help to improve the mortgage offers you receive from providers. 

On to the benefits of being a first time buyer. Alongside benefits such as; not having a chain to worry about or a property to try and sell, there are lots of financial benefits to be aware of too. As a first time buyer, you might qualify for a number of different Help to Buy Schemes that aren’t available to other buyers. Not to mention, you might also be exempt from paying Stamp Duty Land Tax (SDLT) as well, saving yourself thousands of pounds. 

An example of a brilliant Help to Buy Scheme is the new 2021 scheme from the Government. This equity loan scheme allows first time buyers to purchase a new-build property with only a 5% deposit. A mortgage provider will then lend you up to 75% Loan to Value (LTV) and the Government will provide the missing 20% as an ‘equity loan’. This can be incredibly useful when you’re struggling to save for a 10% deposit on a property. 

Mortgage options available for first time buyers

There are lots of different types of mortgages available and when you plan on living in the property you purchase yourself, two of the most commonly sought after mortgages are; residential mortgages and shared ownership mortgages

Residential mortgages

As the name suggests, a residential mortgage is designed specifically for residential properties. So, when you’re buying your first home, it is highly likely that you will require this type of mortgage. When taking out a residential mortgage, you will need to borrow enough money to pay for the whole property, minus the deposit you’re putting down yourself. 

Shared ownership mortgages 

This type of mortgage is slightly different from a residential mortgage and it is a great way to get your foot on the housing ladder. Shared ownership mortgages tend to be available for either new homes or second-hand homes through housing associations. When you have a shared ownership mortgage, you will only own part of a property, often between 25% and 75% and you will therefore need to borrow less money from a mortgage provider. 

Speaking to an expert about a first time buyer mortgage 

If you’re at a stage in your life when you’d like to purchase your first home, don’t hesitate to contact our mortgage advisors in Maidenhead. At Mortgage Required, we really enjoy helping first time buyers purchase their first homes and we will gladly provide you with the comprehensive mortgage advice you need. Our team of mortgage brokers will cut through the jargon and search the whole market to find the best product for your individual needs. We can even assist you with the application process and we can usually get your mortgage agreed in principle within 30 minutes. To find out more about how our independent mortgage advisors in Maidenhead can assist you, explore the rest of our website today. 

Recent posts

Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.

Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.

It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.

There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish. 

The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.

Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months. 

According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.

If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.

High street lender, NatWest, have launched a new product to help first-time buyers purchase a property with assistance from a family member or friend to get them on the property ladder sooner.