Property Buying Guide
First Time Buyer Mortgage
Getting a first time buyer mortgage is the first step onto the UK property ladder. You need to find out how much you can borrow and how much it will cost you each month. Remember your first time mortgage is a big loan which you will probably pay back over a long period – and for that privilege you have responsibilities regarding repayments and of course, there will be costs.
You always have the option to contact a mortgage lender direct, but a good mortgage broker will know about all the first time buyers mortgage and will be able to offer you first time buyer mortgage advice.
We work with independent mortgage advisors and they can help you on your journey. They know all the mortgages on offer in the UK and can help you choose the right one for you.Your first step should be to seek no-commitment independent first time buyer mortgage advice. A broker or advisor will know all the top first time buyer mortgage deals in the UK.
We also have a table of what we think are the best first time buyer mortgages around. See our best first mortgages comparison table. You should also appoint a conveyancing solicitor. Request a quote for first time buyer legal services.
Here are some examples of a first time buyers mortgage choices.
Guarantor first time buyer mortgage : when your parents will pay your mortgage payments if you can’t!
Cash-back first time buyer mortgage: where you purchase the property, you receive a lump sum from the lender to pay some costs like stamp duty, and other moving in costs.
First time buyer mortgage based on parents’ borrowing ability : when you can borrow more because your parents can help you with the payments.
Joint first time buyer mortgage : when you team up with a family member or friend to borrow more, share the costs but have joint mortgage payment liabilities.
Family offset first time buyer mortgage: when your family’s savings interest is offset against your own mortgage interest.
Graduate and professional first time buyer mortgage : higher amounts are lent to those who are thought to have careers, meaning they will increase their earnings in the near future.
High Loan-to-Value first time buyer mortgage : in the past, some lenders lent up to 130% of the value of the property, meaning you started with negative equity but all your costs were covered.
Shared ownership first time buyer mortgage : you own part of a property, pay rent to the co-owner (usually a housing association) and get a mortgage out for the part you are buying.
Rent to Buy first time buyer mortgage : when how much you’ve been paying for rent is taken as the amount you can afford to pay back with a mortgage. It demonstrates affordability.
Extended terms on a first time buyer mortgage : when you start out with a repayment/mortgage term of up to 40 years. It makes the monthly payments more affordable but you would pay a lot more interest overall if you didn’t shorten the term when you can afford the larger monthly payments.
Shared equity first time buyer mortgage : where in exchange for a mortgage and a top up loan with which to buy a first home, you would have to forfeit some of the increase in value of your property to the top up loan lender when you sell it.