Trusted First Time Buyer Mortgage Broker

Mortgage brokers, officially, are licensed professionals who act as middlemen between borrowers/prospective homeowners like you, and mortgage lenders.

Their main role in the homebuying journey is to find and secure a mortgage deal in line with your financial situation, preferences, and goals. After an initial consultation or advice session, a broker will typically search the market to find a mortgage product that aligns best with your needs. Because they have access to a wide array of lenders and loan products, they can often secure better terms than those you might be able to find on, for example, public comparison websites.

Brokers are one of the best ways to secure a good deal aligned to your circumstances. They ensure the mortgage element of your journey is completed correctly, and often handle the necessary paperwork on your behalf.

A mortgage in principle (MIP), also known as a decision in principle or agreement in principle, is a statement from a lender indicating how much they might be willing to lend you. It’s not a guaranteed offer, but an estimate of your borrowing power based on the financial information you’ve provided (often including income, expenses, and credit score).

Having a mortgage in principle can be beneficial when you’re house hunting, as it gives both you and the seller confidence that you can theoretically afford the property. It can also give you an edge in the buying process, showing that you’re a serious buyer.

With this said, an MIP isn’t a final approval, meaning your true mortgage offer might vary.

A first-time buyer is typically defined as someone who’s never owned property before, whether purchased or inherited, anywhere in the world. This includes people who haven’t held an interest in a residence or haven’t been listed on a mortgage previously. Of course – each lender has their own criteria – however, generally, if you’ve not owned or co-owned a home or haven’t been on the title of a property, you’re likely to be considered a first-time buyer.

Special mortgage products, government schemes, and incentives often cater to first-time buyers to facilitate the home-buying process, but eligibility requirements will always play a pivotal role. Always check the specific criteria to ensure you qualify for any first-time buyer benefits or programs.

Becoming a first-time homeowner is a unique experience directly influenced by your individual circumstances, needs, and wants. This, of course, means that no two journeys from browsing to buying are exactly the same – however, our brokers have worked to outline a general process:

We recommend seeking professional advice as soon as possible. By getting an experienced broker involved in the early stages of your search, you’ll ensure things run as smoothly and efficiently as possible. They’ll start things off by assessing your finances; working to understand your budget, savings, and credit score – all of which will play a significant role in determining your mortgage options. From here, they’ll be able to carve out a bespoke path to purchasing, likely including getting a mortgage in principle, searching the market, submitting an offer, and applying for a mortgage.

A shared ownership mortgage is a unique mortgage package that allows you to purchase a percentage of a property and pay rent on the remaining share (typically owned by a housing association). It’s a particularly popular option for first-time buyers, who often find it challenging to save for a large deposit – especially in today’s market.

Under most shared ownership schemes, you can buy anywhere between 25% and 75% of the property’s value. Your mortgage payments will cover this owned share, whilst you pay subsidised rent on the rest. Should you want to own more of your home, you’ll have the option to increase your share over time in a process known as ‘staircasing’.

The term ‘first-time buyer mortgages’ covers a range of products specifically designed for people stepping onto the property ladder for the first time. They often feature reduced deposit requirements and competitive rates put in place to ease the initial financial burden of making a first-time property purchase.

Enhanced by government initiatives like the Lifetime ISA, Help to Buy, Right to Buy, and shared ownership, first-time buyer mortgages offer a balanced blend of financial flexibility and structured support, ensuring your transition from renting to owning is both manageable and rewarding.

Buying a house is a unique journey – meaning there’s no one-size-fits-all process or timeline. For advice tailored to your exact circumstances, why not speak to a mortgage broker with a dedicated advice service?

That said, the best place to start is usually developing an understanding of your financial situation. You can do this independently by using online calculators, or approach a mortgage broker with documents proving your income and outgoings.

After you’ve discovered your approximate budget, one of the best steps you can take is to get an agreement in principle (also known as a mortgage in principle, AIP, or MIP) from a lender or broker for a solid guide as to how much you might be able to borrow. Following this, you’ll be able to start your property search, attending viewings until you pinpoint your dream home. Once you’ve found it, submit an offer. If it’s accepted, you’ll then instruct a solicitor to handle the legal side of things. Next, proceed with your full mortgage application. Your mortgage broker will be able to assist in finding the best possible deal in line with your finances and chosen property and manage the paperwork on your behalf.

Following a successful property survey and mortgage approval, contracts will be exchanged. Finally, once completion day arrives, the keys become yours.

Stamp duty can vary depending on where in the UK you’re planning on purchasing a property, and what the property will be used for (residential or buy to let).

In England and Northern Ireland, first-time buyers can still benefit from a stamp duty relief. Under this scheme, properties costing up to £300,000 are exempt from stamp duty, and for properties costing up to £500,000, no stamp duty is paid on the first £300,000 (but 5% is paid on the portion from £300,001 to £500,000).

With this said, these rules can be subject to change. It’s always recommended to check the most current regulations or use a stamp duty calculator available online to get an accurate estimation based on your specific property price and location.

How much you’ll need to save for your first-time buyer mortgage can vary greatly depending on the property’s price, the mortgage type, and any supportive schemes you might be eligible for. Typically, deposit prices are lower than those required for ‘regular’ mortgages, and can range from 5% to 20% of the property’s total cost. For instance, for a home priced at £200,000, you’d need a deposit of £10,000 at 5%.

It’s essential to also consider other costs like broker fees, stamp duty, valuation fees, solicitor fees, and potential repairs or renovations when budgeting for your very first home.

A mortgage is, put simply, a large loan used to purchase property. When you take out a mortgage, a lender (whether a bank or building society) will provide you with most of the funds you need to purchase a home or commercial building. In exchange, you’ll agree to repay the amount borrowed plus interest) over a predetermined period of time – usually 15 to 30 years. The property you purchase will act as collateral – meaning that if you default, the lender can take ownership of it.

Mortgages come in a wide variety of forms. There are many products on the market for everyone from first-time to self-employed buyers, each with their own terms and interest rates.