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First Time Buyer Mortgages – Getting Your Application Right

Are you thinking about getting onto the property ladder? As a first-time buyer, it can be overwhelming, but once you know the first few steps and the factors you need to know, you could have your first mortgage without the stress.

How much can I borrow?

Generally, you could borrow between three to five times your income if you are a sole applicant, whereas you could borrow around four times your joint income if you are buying with another person. In some circumstances, you may be able to borrow even more depending on the lender.

How can I improve my credit score?

Knowing what your credit score is can make a big difference to your first time buying experience. There are a few ways to check your score and with a few providers like Experian, Equifax and Check My File.

You can improve your score by paying your credit card statements in full and on time. If you do not have any credit cards and haven’t taken out a loan before, then you may want to look at using a credit facility to increase your credit score.

There are several ways in which you can increase your credit score if you need to. The best place to start is to work your way through your credit report and correct any errors.

It is possible to improve your credit score in a short space of time but bear in mind that the score is normally updated once a month.

How much will you need for a deposit?

The 2020 coronavirus pandemic has impacted many industries and mortgage deposits have not escaped the cut backs.

In general, as a first time buyer you could buy a residential home with a deposit of 5%, with more lenders coming into play when that was increased to 10%. Essentially, the bigger your deposit, the better your mortgage rate was.

What schemes are available for First Time Buyers?

The Government Help to Buy scheme is available for those wishing to purchase a new build with only a 5% deposit. The Help to Buy equity loan from the Government can be up to to 20% of the property value outside of the Capital which could be up to 40%.

Many new builds support Help to Buy, making it easier for you to get onto the property ladder because of the low deposit value.

Other schemes that may interest first time buyers:

  • Guarantor Mortgage
  • Family Assist mortgage
  • Shared Ownership
  • Right to Buy (old scheme, closed to new council tenants)
  • Right to Acquire

As of August 2020, there’s no longer an option to purchase your residential home with a 5% deposit unless you are using one of the government schemes in place; such as the Help to Buy.

The mortgage market will generally open up if you have a 15% deposit, some lenders will currently lend at 10% but this comes with strict criteria for you to adhere to.

What fees are involved in purchasing your home?

When you are a first-time buyer, it’s best to be aware of the fees involved, as this can sometimes be missed in the saving process, such as Stamp duty, Mortgage Fees, and Surveys.

Not saving enough for these could prevent the process from going smoothly and delay you buying your first time home, which could be very frustrating.

Here’s a list of some of the fees that may be involved. Our team of mortgage advisers can help you understand which ones are relevant and what the cost may be.

Mortgage Fees & Charges;

  • Valuation/Survey Fee – 3 levels – Basic, Homebuyers & Full Structural
  • Product/Arrangement Fee
  • Higher Lending Charge
  • Telegraphic Transfer fee
  • Early Repayment Charges
  • Deeds Release/Exit fee
  • Advice Fee


Legal fees & other charges

  • Solicitor fees
  • Stamp Duty
  • Moving fees – van rental or removal company

How can a Mortgage Broker help?

Wherever you are in the journey we are here to help. Even if your bank or building society has rejected your mortgage application. This doesn’t mean there isn’t another suitable lender, it just means you didn’t fit that one lender’s criteria.

It’s never too early to plan your mortgage application, especially getting your credit report organised.

Call our team today for an initial no fee, no obligation discussion around your new home purchase. Fees could be incurred once an application process is started.f

Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

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If you are looking for a mortgage or life insurance, call us today on 01923 606808 or complete our short enquiry form here. We’ll be pleased to help you.