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First-Time Buyer Mortgages.
Your Path to Homeownership Starts Here.

Taking your first step onto the property ladder? Our expertise and resources are designed to make your journey smoother. Whether you’re unsure of your budget, want to understand the process, or need help securing the best mortgage deal, we’re here to guide you.

Calculate your affordability as a first-time buyer.

Compare the latest first-time buyer mortgage rates.

Understand the first home buying process & secure the best mortgage.

Get informed: Explore our first-time buyer guides & calculators.

Discover how these mortgages work, eligibility requirements, and the steps involved in the homebuying journey.

What is a first time buyer mortgage?

A first-time buyer mortgage is designed for people who have never owned a property before. These mortgages often come with benefits  like lower deposit options and government-backed schemes to help make buying your first home easier.

How do first time buyer mortgage work?

Residential mortgages focus on your income and overall financial health to determine how much you can borrow. While deposits typically start at 5%, in some cases you may be able to borrow 100% of the property value using a guarantor or family-assisted mortgage. Lenders offer both repayment (principal + interest each month) and interest-only options (lower monthly payments, but you’ll need a plan to repay the loan at the end).

How Much Can I Borrow?

Discover your borrowing potential. Our calculator helps you estimate how much you might qualify for, providing a starting point for your search.

Applicant one: Annual income (before tax)
£
Applicant two: Annual income (before tax)
£
Next Step: Let's Explore the offerings that are personalized to you.
Disclaimer: Rates apply for England and Northern Ireland only.
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What are the current interest rates for first-time buyers?

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Achieve your homeownership goals with our easy-to-use calculator. It analyzes the market, helping you compare rates and find the perfect fit for your budget.

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Do first time buyers pay Stamp Duty?

You’ll only need to pay Stamp Duty if the property value is above a certain amount.
For first time buyers in England and Northern Ireland, the threshold for paying Stamp Duty is much higher due to the government’s relief scheme. Standard Stamp Duty rates apply if the property is worth more than £625,000.
Minimum property Maximum property price Stamp Duty rate
£0
£425,001
0%
£425,000
£625,000
5%
£625,000
£1,500,000
10%
£1.5m+
-
12%

You only pay tax on the amount above the threshold. If you were to buy a home for £429,000, as a first time buyer, you’d only pay 5% tax on the £4,000 that falls above the £425,000 threshold.

First Time Buyer Stamp Duty Calculator

Property Value
£
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Disclaimer: Rates apply for England and Northern Ireland only.

What is the Mortgage Application Process for First-Time Buyers?

The mortgage application process involves several steps:

Mortgage Agreement in Principle (AIP):

  • Obtain an AIP to show sellers you are a serious buyer and understand how much you can borrow.

Find a Lender:

  • Find a property within your budget and make an offer.

Full Mortgage Application:

  • Submit a full application to the lender with necessary documents such as proof of income, bank statements, and identification.

Valuation and Survey:

  • The lender will conduct a valuation to ensure the property is worth the loan amount. You may also commission a survey to check the property’s condition.

Mortgage Offer:

  • If approved, you’ll receive a formal mortgage offer detailing the terms and conditions.

Legal Work:

  • Your solicitor will carry out legal checks, including searches and contract review.

Completion:

  • Once all checks are complete, the mortgage funds are transferred to the seller, and you get the keys to your new home.

By using a broker, you gain access to a wider range of mortgage products, benefit from expert guidance throughout the application process, and increase the likelihood of a positive outcome. Brokers help navigate the complexities of commercial mortgages, ensuring that your application is handled smoothly and effectively.

Why choose Mortgage.One?

  • We keep things simple: No broker fees, ever. Lenders compensate us directly for our services, empowering you to focus on finding your dream home. Start exploring your options and potential costs with our mortgage calculator.
  • Proven Track Record:  We've helped number of families find their perfect home. See our client testimonials Click Here.
  • Wide Range of Options: We analyze countless mortgage options, finding the ideal rates and terms that fit your budget and goals. Start exploring, compare your choices & apply online or over the phone Click Here.
  • Navigate the Process with Clarity:  Our comprehensive calculators help you compare mortgage options, understand costs, and analyze different scenarios. Make informed choices on the path to your dream home Click Here.
  • Less Stress, More Joy: We handle the complexities of the mortgage process, saving you time and simplifying your homebuying experience. Focus on finding your dream home, not paperwork.
  • Wide Range of Options: We analyze countless mortgage options, finding the ideal rates and terms that fit your budget and goals. Start exploring, compare your choices & apply online or over the phone Click Here.

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What Government Schemes are Available for First-Time Buyers?

Several government schemes can assist first-time buyers, including:

  • Help to Buys: Offers an equity loan to boost your deposit, available on new-build properties.
  • Shared Ownership: Allows you to buy a share of a property (25% to 75%) and pay rent on the remaining share.
  • Lifetime ISA: A savings account with a 25% government bonus on savings, which can be used towards purchasing your first home.
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What Types of Mortgages are Available for First-Time Buyers?

First-time buyers can choose from various mortgage types:

  • Fixed-Rate Mortgages: Interest rate remains the same for a set period, providing stable monthly payments.
  • Variable-Rate Mortgages: Interest rate can change, typically in line with the Bank of England’s base rate, affecting monthly payments.
  • Tracker Mortgages: A type of variable-rate mortgage that tracks the Bank of England’s base rate, plus a set percentage.
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How Do Lenders Assess Affordability for First-Time Buyer Mortgages?

Lenders conduct thorough affordability assessments to determine how much you can borrow:

  • Income Assessment: Evaluation of your income, including any bonuses or additional earnings.
  • Expenditure Review: Assessment of your regular expenses, such as utility bills, groceries, and existing debts.
  • Credit Check: Review of your credit history and score to gauge reliability in repaying debts.
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Take Control of Your Mortgage.

Our guides and calculators provide the insights you need to make informed decisions – whether you’re buying, remortgaging, or simply exploring your options.

See how much can you borrow on Mortgage

Applicant one: Annual income (before tax)
£
Applicant two: Annual income (before tax)
£
Next Step: Let's Explore the offerings that are personalized to you.
Disclaimer: Rates apply for England and Northern Ireland only.

See How Much it will Cost on Mortgage

How much do you want to borrow?
£
Over how many years?
years
Interest rate
%
Repayment type
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Disclaimer: Rates apply for England and Northern Ireland only.

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I am Buying
Property price
£
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Disclaimer: Rates apply for England and Northern Ireland only.

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Loan amount
£
Interest rate
%
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Disclaimer: Rates apply for England and Northern Ireland only.

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%
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Amount
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Disclaimer: Rates apply for England and Northern Ireland only.
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What are the Repayment Terms for First-Time Buyer Mortgages?
First-time buyer mortgages usually involve repayment mortgages where you pay back part of the capital along with interest each month. Less common for first-time buyers are interest-only mortgages, where you pay only the interest each month and repay the capital at the end of the mortgage term. Repayment terms vary, so it’s important to choose one that fits your financial situation and long-term goals. For detailed guidance, speak to one of our expert team members.
What Costs are Involved in Buying a Home Besides the Mortgage?
There are several additional costs to consider, including:
  • Stamp Duty: A tax on property purchases, with varying rates depending on the property price.
  • Legal Fees: Costs for solicitors to handle the legal aspects of the property purchase.
  • Survey Costs: Fees for property surveys to assess the condition of the home.
  • Valuation Fees: Fees charged by the lender to value the property.
  • Moving Costs: Expenses for moving services or renting a moving truck.
  • Home Insurance: Insurance to protect your property and belongings.
How Does My Credit Score Affect My Mortgage Application?

Your credit score significantly impacts your mortgage application. A higher credit score can help you secure better interest rates and terms, while a lower credit score might limit your options or result in higher interest rates. It’s important to check your credit report and address any issues before applying for a mortgage.

What is a Mortgage Broker and Should I Use One?
A mortgage broker is a professional who helps you find and apply for a mortgage. They have access to a wide range of mortgage products and can offer personalized advice based on your financial situation. Using a broker can simplify the process and potentially help you secure a better deal, but it may involve additional fees.
What is an Agreement in Principle (AIP) and Why is it Important?

An Agreement in Principle (AIP) is a statement from a lender indicating how much they might be willing to lend you based on an initial assessment of your finances. It’s important because it shows sellers you are a serious buyer and gives you a clear idea of your budget when searching for properties.

How Long Does the Mortgage Application Process Take?
The mortgage application process can take anywhere from a few weeks to several months. This depends on various factors, including the complexity of your financial situation, the responsiveness of your lender, and how quickly you can provide the necessary documentation. On average, expect the process to take around 4-8 weeks from application to completion.
What Documentation Do I Need to Apply for a Mortgage?
When applying for a mortgage, you will typically need to provide:
  • Proof of identity (passport or driver’s license)
  • Proof of address (utility bills or bank statements)
  • Proof of income (payslips, P60, or tax returns if self-employed)
  • Bank statements (usually covering the last 3-6 months)
  • Details of any existing debts or financial commitments
What is the Role of a Solicitor or Conveyancer in the Home Buying Process?
A solicitor or conveyancer handles the legal aspects of buying a home. Their role includes conducting property searches, reviewing contracts, arranging the transfer of funds, and ensuring the property title is transferred correctly. They provide crucial support in ensuring a smooth and legally compliant transaction.
Can I Get a Mortgage if I’m Self-Employed?
Yes, you can get a mortgage if you’re self-employed, but the process may be more complex. Lenders typically require more documentation to verify your income, such as tax returns, business accounts, and an accountant’s reference. It’s important to have at least two years of accounts to demonstrate your earnings and financial stability.
What Should I Do if My Mortgage Application is Rejected?
If your mortgage application is rejected, you should:
  • Understand the Reasons: Ask the lender why your application was declined.
  • Check Your Credit Report: Look for any issues or errors that could have affected your application.
  • Seek Advice: Consider consulting a mortgage broker who can help you understand your options and find a more suitable lender.
  • Improve Your Finances: Work on improving your credit score, reducing debt, and saving a larger deposit.
How Much Can I Borrow as a First-Time Buyer?
The amount you can borrow depends on several factors, including your income, outgoings, credit score, and the size of your deposit. enders typically use affordability assessments to determine how much you can afford to borrow. This often involves a multiple of your annual income (e.g., 4 to 4.5 times your salary) and an evaluation of your financial commitments.
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