First time buyers mortgage

When you’re looking to buy your first home, the options for mortgages that are available to you can seem overwhelming. Make the journey stress-free with the right advice and support from us.

What are first time buyer mortgages?

First time buyer mortgages are only available to those new to the housing market, or those who haven’t owned a home for at least 2 years. We understand the challenges in the housing market, and the struggles of first time buyers as they attempt to get onto the ladder.

We offer a free initial consultation to understand your needs and current situation. Then, we’ll research the entire market to make sure you’re getting the best deals for you. We’ll help you through the process from start to finish, going the extra mile with individualised advice. There are no upfront fees, and we’ll be here for the next steps – and through the lifetime of your mortgage.

How to qualify for a first time buyer mortgage

Before you can take out a mortgage as a first time buyer, you first need to meet some basic criteria:

5% deposit minimum

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This can come from sources like savings, gifts, or builder deposit schemes.

3 months employment

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Most lenders require you to be in permanent employment; however, we can still find lenders for those with new and non-permanent roles.

1 year self-employment

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If you’re self-employed, you will need a minimum of 1 year of trading, although most lenders will want you to have a 2-year history.

2-year UK resident

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We can consider various visas and settlement schemes.

Home ownership

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You’re only eligible for first time buyer mortgages if you don’t currently own a home, and either have never owned one or haven’t owned one for at least 2 years.

Buy To Let

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We can support and advise first time buyers looking to purchase their first home for rental and investment purposes.

Simple steps to your first mortgage

Your journey begins by choosing the right mortgage broker and ensuring they can help you achieve your goals. By following our simple process, you can put yourself in the best position to secure your dream home.

1

Get mortgage ready

Speak to an advisor. They’ll build an understanding of your budget and buying power, then make sure your deposit sources, income requirements, and paperwork are all in order.

2

Have an Agreement in Principle ready

By ensuring you have an Agreement in Principle, you can be in the best position to deal with estate agents and be ready to put an offer on a property, helping you to secure the property you want. This also soothes the stress of the process, helping you provide the required information when its needed.

3

Find your new home

Browse the market to find the right home for you. Once you’ve found a house you like, and had an offer accepted on it, get back in touch with us to continue the process. We can liaise with the estate agent on your behalf to ensure all the information necessary to secure the offer is provided. We can also support you with the solicitor’s recommendation, and assist with completing and providing paperwork, ID, and Proof of Deposit documents.

4

Apply for your mortgage

Now that your offer is secure, we can recommend the most suitable mortgage for you. If you’re happy with what recommend, we can move on to submitting your mortgage application to the lender and for valuation instruction. We will also ask you to send us any updated documents that we don’t already have.

5

Protect yourself and your home

Once the details of the mortgage have been worked out, we can look at the various options available to you for protecting your home and belongings. We can help you to ensure you and your family remain in your home, no matter what happens in the future.

Find out more about our protection services >

6

Mortgage Offer

If the lender is happy with the documentation and the valuation, they can proceed to the Mortgage Offer. When this occurs, you will be approved to borrow the required money from the lender and can proceed with the solicitor’s work. At this stage, there are a few things to consider:

  • Whether or not your deal has early repayment charges
  • If there are fees are attached to your mortgage deal
  • How much your monthly repayments will be
  • Interest rates
  • The length of your mortgage term
7

Solicitors work

Once the solicitors receive the contracts and the Mortgage offer, then can begin instructing searches on your property and sending enquiries to the vendors solicitor. After these have been received, which often takes from 6 to 8 weeks, they will arrange an exchange and completion date with all parties involved. The solicitor will request the mortgage funds from the lender, and we will ensure that any protection policies are given a start date.

8

Get the keys to your new home

Congratulations! It’s time to move in 😊.

You will receive your first payment notification by text, email, or post. This will confirm your mortgage account number, your Direct Debit details, and the amount and date of your first mortgage payment.

9

Receive further support from us

We’re still here for you.

When the initial period on your mortgage ends, you’ll likely be moved onto your lender’s standard variable rate (SVR). The SVR is usually much higher than your previous rate, meaning your mortgage repayments can increase significantly.

We’ll get in touch when it’s time to start looking for a new mortgage deal. It’s usually a good idea to start looking for a new deal about 6 months before your mortgage’s initial period ends.

If you are a first time buyer, did you know?

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A 100% mortgage might be available for first time buyers who have rented for the last 2 years.

You can take out a Shared Ownership Mortgage for part buy part rent.

You can transfer equity and property ownership between parents and children.

To determine their income for mortgages, people who are self-employed can use a combination of:

  • Net profit after tax
  • Salary
  • Dividends
  • Gross profit before tax

Professionals can achieve a higher income multiple, allowing them to stretch their borrowing power.

First time buyers can borrow up to 5.5 times their income if they’re employed and have good credit.

Parents and siblings can help their families afford a mortgage by using a Joint Borrower Sole Proprietor Mortgage.

You can receive buying support for your Right to Buy.

Contractors – whether inside or outside of IR35, a limited company, or an umbrella company – can use their day rate and could be considered even with less than 1 year of contracting history.

CIS contact workers in the building industry can use their payslips or invoices for affordability, dating back 12 months.

If you have adverse credit, you can still be considered for a mortgage. 1 missed payment, a small CCJ, or default could be ignored.

Frequently asked questions from our first time buyers

Still stuck on how to start your mortgage journey? Check out our answers to common questions from our customers.

How do I know which mortgage is right for me?

We work to understand your situation and needs, building a foundation to support you in getting the most appropriate mortgage for your circumstances. You can start this process even before our initial free consultation by checking out our mortgage services or our Find Your Mortgage page.

What does my fee cover?

Your fee will cover the production of a mortgage offer as well as support through the conveyancing process, until you get your keys – and beyond.

Can you help if I don’t start my mortgage journey with you?

If you’ve already tried to get a mortgage and were unable, you can still speak with us. We might have a lender that could meet your circumstances and provide you a mortgage.

Where do you operate?

We have dedicated advisors across London and the UK.

We can help you secure the right mortgage, helping you to achieve your dream house at the best rates. We’ll match your budget and locational preferences, supporting your home purchase and community attachments.

What happens if my Mortgage Offer falls through?

If you are not given a Mortgage Offer, depending on the reason, then we will support you through the process. It’s also good to note that there will not be a fee to pay.

If you are given a Mortgage Offer, but it later falls through due to various circumstances, we can work with you to find a new property and support you through the process again.

What fees are involved in getting a mortgage?

There are many different people and processes involved in the mortgage process. We know it can be stressful when unforeseen costs arise during your major purchase, especially when it’s your first time buying a property. We’re here to lend a warm, helping hand to get you through the process in a clear, understanding way.

Some mortgage fees you can expect to see are:

  • Stamp duty
  • Solicitor’s fees
  • Product fees
  • Valuation fees

Can I still borrow if I have only been self-employed for 12 months?

Yes! There are specialist lenders that can use one-year accounts to support the affordability of your mortgage. This means you can achieve your dreams and bring your family to a new home, even with a limited history of self-employment.

Can I still borrow if I have historic or current adverse credit?

Having adverse credit can be a challenging situation for many buyers attempting to get their first home. Even if you have adverse credit, we might still be able to find you a lender that is willing to give you a deal on your mortgage. Understanding why and when this happened will allow us to recommend the best lenders for your needs.

Are you able to talk to and support us with third parties involved in the transaction?

We are here to help you throughout the entire process. This means that we can speak with any third parties involved should you wish us to, giving you as much comfort and support as you need. Even after the transaction is over, the journey will go on, and we’ll be here as your mortgage brokers for life.

Will I be dealing with the same person, throughout my transaction?

To ensure you have a consistent, open experience, we make sure you stay with the same broker from the start of your transaction to the end – and beyond, for any further support you may require.

What documents will I need to provide?

You will be required to initially supply the following documents, based on your situation and requirements:

  • ID documents for each applicant, such as a passport or driving licence.
  • Proof of address for each applicant, such as utility bills dated in the last 3 months, bank statements, or council tax statements.
  • Proof of income and expenditure, by way of personal bank statements from the last 3 months.
  • Proof of income for employed applicants, by way of P60 and payslips from the last 3 months.
  • Proof of income for self-employed applicants, by way of self-assessments from the last 2 years or the most recent set of accounts.
  • Proof of deposit from the last 6 months of bank statements, if the deposit comes from savings. Gifted deposits will require bank statements and ID for the person gifting.
  • Proof of UK residency, by way of residency card. You will need to share your code to prove your settlement status.

We have the right to request further information throughout the process, as and when it’s required.

Can you still help if I am on maternity or paternity leave?

Yes, we can still help! Speak to us so we can understand your specific situation and what your future plans are. Depending on when you want to go back to work, we could use your income for your mortgage affordability.

Can you help if I receive benefits?

You might receive various benefits, alongside your income. Depending on what type of benefits these are, lenders may be able to use them as part of the affordability assessment, allowing you to borrow more. Ideally, these benefits must be ongoing and payable to you for the foreseeable future.

Fee information

Although our initial advice and consultation are free, we do charge a fee for our service. This is only payable at the Mortgage Offer stage, once you have received the mortgage offer from the lender. This is a lifetime fee to cover the advice and initial set-up, but also for our support for the mortgage through its term.

Our standard fee for first time buyers is £800, payable on the production of the Mortgage Offer. Should you have any specialist requirements, such as adverse credit or irregular income, we reserve the right to increase our fee accordingly to £1,200.

Specialist lending

Not everyone fits in the same box. If you’ve got special circumstances, you may need a more specialist approach for your lending requirements – we can help you find the right solution for your situation.

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Our insights

Whether you’re in need of guidance for a general concern about mortgages, or just want to keep up with our thoughts on interesting developments in the market, our blogs and news posts are here to lend a helping hand.

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