First Time Buyer Mortgages
“Everyone starts somewhere. Let’s make yours count.”
Buying your first home is one of the biggest financial decisions you’ll make. We’ll guide you through every step, from working out what you can borrow to getting the keys in your hand.
Quick answer
A first time buyer mortgage is a home loan for someone who has never owned property before. Most lenders want a deposit of at least 5% of the price, and what you can borrow depends on your income, outgoings and credit history, not just your salary. The main thing to know is that the cheapest rate isn't always the best deal once fees and the deposit bracket are factored in.
How a first time buyer mortgage works
You’re not carrying any existing mortgage or equity into the deal, so the lender assesses you and the property from scratch. Your income, deposit and credit file do all the work, and each lender weighs them a little differently.
Deposits work in bands. Moving from 5% to 10%, or 10% to 15%, usually opens up noticeably better rates, so a small top up can save a lot over the initial deal.
It differs from moving home, where your equity forms the deposit, and from buy to let, where rental income drives the numbers.
Schemes and gifted deposits
If your deposit is coming from family, most lenders are fine with it. They will want a signed letter confirming it’s a gift, not a loan, and that the giver has no stake in the property.
Shared Ownership and some lender schemes can reduce the deposit you need. We’ll tell you honestly whether a scheme helps or just adds restrictions.
Eligibility and what lenders assess
Who may qualify
Anyone who has never owned property, buying a home to live in, with a stable income.
Deposit and LTV
At least 5% for most lenders, with better rates from 10% and above.
Income and affordability
Salary, regular overtime, bonuses and outgoings are all assessed.
Credit history
Missed payments or a thin credit file can narrow the lenders open to you.
Property requirements
Construction type, condition, tenure and value all matter to the lender.
Common reasons for decline
Undisclosed debts, inconsistent paperwork, or applying to the wrong lender first time.
What happens from first call to completion
Review your circumstances
A proper conversation about your income, commitments, plans and timescales before anything else.
Check affordability and criteria
We check what lenders will realistically offer and whose criteria you fit, before any credit search.
Compare suitable options
We compare the market on total cost, not just the headline rate, and explain the trade offs.
Prepare and submit the application
We package your documents so the underwriter has what they need first time.
Manage valuation and underwriting
We chase the lender, valuer and solicitor and deal with any questions that come up.
Receive your offer and complete
Once the offer is issued we keep things moving through to completion day.
Costs, risks and when it may not be suitable
Being upfront about this is part of doing it properly.
Costs to budget for
- Product and arrangement fees
- Valuation and legal costs
- Early repayment charges if you leave a deal early
- The total cost of borrowing over the full term, not just the initial rate
- A longer term lowers monthly payments but increases the total interest you pay
Risks to weigh up
- Stretching to the maximum you’re offered isn’t always the right call
- Rates can change before you find a property, so an agreement in principle is not a guarantee
- Your home may be repossessed if you do not keep up repayments on your mortgage
When it may not be suitable
- If you’re likely to move within a couple of years, a long fix with high early repayment charges may not suit
- If your deposit only just reaches a bracket, waiting to save a little more can sometimes save more than it costs
What you will need
The exact list depends on your lender, but this is what to start gathering.
How MBNM helps
- Assess your circumstances properly, not just your salary
- Compare suitable lenders and products across the whole market
- Check criteria before an application goes anywhere near a lender
- Explain the total costs and trade offs in plain English
- Manage the application and chase the people who need chasing
- Support you all the way through to completion
What it costs
Your first chat is free. If we can help, we will explain any fees before you decide whether to proceed. There are no hidden fees, and we will not move forward until you have agreed them.
“I cannot explain how amazing Mortgage Brokers Near Me were. My husband and I were first time buyers and had no idea what we were doing. Will provided the most clear and simple explanation of the process and supported us throughout.”
First Time Buyer Mortgage FAQs
Ready to find out what you can actually afford?
We’ll talk through your income, deposit and plans, tell you what lenders are likely to offer, and what it would cost each month.
Your first conversation is free and there's no obligation. If we can help, we'll explain any fees before you decide whether to go ahead.
Your home may be repossessed if you do not keep up repayments on your mortgage.