First-Time Buyer Mortgages

Buying your first home is one of the biggest financial decisions you'll make. We're here to guide you through every step — from understanding how much you can borrow to picking up the keys.

Understanding your mortgage options

With hundreds of lenders and thousands of products available, choosing the right mortgage can feel overwhelming. Here are the main types you'll encounter:

Fixed Rate

Your monthly payments stay the same for an agreed period (typically 2, 3, or 5 years), giving you certainty and making budgeting easier.

Tracker Rate

The interest rate tracks the Bank of England base rate plus a set margin. Your payments go up and down with interest rate changes.

Discounted Variable

A set discount off the lender's standard variable rate (SVR) for a fixed period. Payments can change if the SVR moves.

Capped Rate

A variable rate with a ceiling. Your payments can go down but will never exceed the cap — offering some protection against rate rises.

Standard Variable Rate (SVR)

The lender's default rate, which you'll typically move to after your initial deal ends. SVRs are usually higher, so most people remortgage before this happens.

Libor-Linked

Rates linked to the London Interbank Offered Rate (now largely replaced by SONIA). These are less common for residential borrowers but still available on some products.

Repayment methods explained

How you repay your mortgage is just as important as the interest rate. There are three main options:

Capital & Interest

The most common method. Each monthly payment covers some of the loan (capital) plus the interest. By the end of the term, your mortgage is fully repaid.

Interest Only

You only pay the interest each month, so your payments are lower — but the full loan amount is still owed at the end of the term. You'll need a repayment strategy.

Part & Part

A combination of both. Part of the mortgage is repaid on a capital and interest basis, and part is interest only. This gives lower payments while still reducing the debt over time.

Getting mortgage-ready: your checklist

Before you start viewing properties, make sure you're in the strongest possible position to secure the best mortgage deal.

1

Check your credit report

Register on the electoral roll, settle any outstanding debts, and check for errors on your credit file. Even small issues can affect your application.

2

Save the largest deposit you can

5% is the minimum, but 10-15% unlocks significantly better rates. Each 5% step up in deposit typically improves the deals available to you.

3

Gather your documents

Three months' payslips, three months' bank statements, proof of ID and address, and details of any existing financial commitments.

4

Get a mortgage agreement in principle

This shows estate agents and sellers that you're a serious buyer with finance lined up. We can arrange this for you quickly.

5

Budget for additional costs

Solicitor fees (£700-£1,000), survey costs (£250-£600), and building insurance are all needed. First-time buyers are exempt from SDLT on the first £300,000.

How we help first-time buyers

As independent mortgage brokers, we have access to the entire market — including deals you won't find on comparison sites or by walking into a bank. Here's what you can expect:

  • A free, no-obligation initial consultation to assess your situation
  • Whole-of-market search across hundreds of lenders
  • Agreement in principle arranged quickly so you can start viewing
  • Full application management — we handle the paperwork and chase the lender
  • Guidance on protection insurance to safeguard your new home

Frequently asked questions

How much deposit do I need as a first-time buyer?
Most lenders require a minimum 5% deposit, though putting down 10-15% will give you access to better interest rates. Some government schemes can help with smaller deposits.
What is stamp duty land tax (SDLT) for first-time buyers?
First-time buyers are exempt from SDLT on the first £300,000 of a property purchase. For properties between £300,001 and £500,000, you pay 5% on the amount above £300,000. No relief is available on properties over £500,000.
How much can I borrow?
Most lenders will offer 4 to 4.5 times your annual household income, though some specialist lenders may stretch to 5 or even 6 times income for certain professionals. We'll assess your full financial picture to find your maximum borrowing.
Do I need a solicitor?
Yes. You'll need a solicitor or licensed conveyancer to handle the legal transfer of ownership. Expect costs of around £700 to £1,000 plus disbursements.
What's the difference between a mortgage broker and going direct to a bank?
A bank can only offer their own products. As independent mortgage brokers, we search the whole market — including deals not available directly — to find the most suitable mortgage for your circumstances.

Ready to take the first step?

Book a free consultation and we'll help you understand exactly how much you can borrow and what it will cost.

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