FIRST TIME BUYER
Helping first time buyers get onto the property ladder
First time buyer mortgages
- From a mortgage lender’s perspective, if you currently don’t own a property, or if you’re making a joint application and neither of you own a property, most lenders will recognise you as a first time buyer.
This means if you require finance to buy your first property, you’ll need a first time buyer mortgage. - A first-time buyer mortgage often come with features to help new buyers get on the property ladder, such as lower deposit requirements, competitive interest rates, and special incentives like cashback or fee-free deals.
Lenders may also offer extra support and guidance through the application process. - In addition to certain costs including legal fees, valuation fees, survey fees, and mortgage arrangement fees, Stamp Duty Land Tax (SDLT) is a tax you pay when purchasing property or land in England and Northern Ireland. The amount depends on the property price and your buyer status, but first-time buyers receive certain reliefs.
For first-time buyers, SDLT is not charged on the first £300,000. 5% SDLT is charged on the portion between £300,001 to £500,000, and properties over £500,000 do not qualify for first-time buyer relief and standard rates apply.
Are there any special mortgage deals for first time buyers?
In most cases, mortgage rates for first time buyers are similar to those for buyers moving home. However, some mortgage products are tailored to first time buyers, offering features like low 5% deposit options or cashback on completion for those with limited savings. It’s important to seek first time buyer mortgage advice and consider these incentives carefully, comparing them against the total cost of the mortgage to ensure you’re getting the best overall deal.
First time buyer mortgage: loan amount
As a first time buyer, how much you can borrow depends mainly on your income, outgoings, and credit history. Most lenders offer between 4 to 4.5 times your annual income, though this can vary from one mortgage lender to the next. Some lenders may offer more if your finances are strong. A first time buyer mortgage broker can help you work out your maximum borrowing and find the best deal for your situation.
How important is my annual income for a first time buyer mortgage?
Your annual income is very important for a first-time buyer mortgage, as it largely determines how much you can borrow. Mortgage lenders use your income, along with your outgoings and credit history, to assess affordability and set your borrowing limit. Generally, the higher your income and the lower your debts, the more you’ll be able to borrow for your first home. Be sure to seek professional advice from Bennison Brown before committing to a first time buyer mortgage.
How do I get a first time buyers mortgage?
To get a first time buyers mortgage, start by checking how much you can borrow and what deposit you’ll need (typically at least 5–10% of the property’s value). Next, gather key documents like proof of income, bank statements, ID, and credit score. Once you’re ready, seek first time buyer mortgage advice from Bennison Brown and compare mortgage deals with our expert brokers who can guide you through your options. With the right preparation and advice, securing your first mortgage can be a smooth and straightforward process.
What are the pitfalls of first time buyer mortgages?
First time buyer mortgages can come with higher interest rates for low deposits, extra fees, and strict affordability checks due to a lack of previous mortgage lending history. Borrowing the maximum amount may also stretch your finances, and attractive introductory rates can rise sharply later. Be mindful of early repayment charges and always factor in all costs before committing. Speak to a first time buyer mortgage advisor for advise relevant to you individual circumstance.
How to avoid the pitfalls of first time buyer mortgages
To avoid the pitfalls of first time buyer mortgages, start by saving a larger deposit if possible, as this can get you better rates and more options. Carefully budget for all costs including fees, insurance, and moving expenses, and avoid overstretching your finances by borrowing only what you can comfortably afford. Ensure you compare deals thoroughly with a mortgage advisor, watch out for introductory rates that may increase later, and check for any early repayment charges.
Other things to consider
The professional support you need beyond a first time buyer mortgage advisor:
- A solicitor is essential for first-time buyers because they handle all the legal work involved in purchasing a property, ensuring the process is smooth, your interests are protected, and all contracts and documents are properly managed from start to finish.
- Valuers and surveyors are important services for first-time buyers because they assess a property’s true value and condition, helping you avoid overpaying or facing unexpected repair costs. Their expertise gives you confidence and protects your investment as you take your first step onto the property ladder.
- If you are self employed you may need support from an accountant to help organise your finances, prepare accurate accounts, and provide the necessary documentation lenders require for a mortgage application. Their expertise ensures your income is clearly presented, improving your chances of securing the best possible mortgage deal.
- Bennison Brown are part of a network of trusted professionals, and can point you in right direction of essential first time buyer services you can trust.
Organise a free consultation
Leave us your details or give us a call on 0207 427 6067
Or email enquiries@bennisonbrown.co.uk
We look forward to speaking to you soon. We don’t use your details for marketing, only to get in touch and speak to you about your requirements.
Why Bennison Brown?
Buying your first home is a major step and it is vital you are able to consult with professionals you can trust. Trying to do it by yourself could cost you a lot of time and money. Bennison Brown offer a free service to help you avoid pitfalls. We do this as we want to help people and we also want to build trust with you so you consider using us should you go ahead with a full application.
A mortgage broker does not need to be expensive assuming you negotiate a good deal. A broker also gets paid by the lender so there should be no reason not to get advice. At Bennison Brown, we charge a £150 application fee, which is payable once we are ready to submit your mortgage application for you. Our broker fee is £520 and is only payable once we have secured you a formal mortgage offer. We try to keep this as low as possible whilst maintaining the reputation we’ve developed for offering a 5-star service.
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