A quick overview of First-Time Buyer Mortgages
First-time buyers typically have access to the same range of mortgages as any other borrower, although some lenders have specific deals aimed at those buying their first home. Most prospective homeowners find the deposit the most challenging hurdle, but there are plenty of options if you're struggling to save a large enough deposit.
What type of first-time buyer mortgages are there?
Some mortgages are designed for first-time buyers, although they work in the same way as other mortgages. Usually these products are intended to help you get onto the property ladder, or have some sort of incentive to help you through the homebuying journey. You could consider:
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Lenders that accept gifted deposits
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A guarantor mortgage or family-assisted mortgage
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A wide range of government and non-government home ownership schemes which typically help with deposit costs
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A 0% deposit mortgage
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Standard products offering cashback, free or subsidised application and legal fees or a low initial interest rate
What is the deposit requirement and other criteria?
The deposit requirement and criteria will vary depending on which lender you choose, and your own personal circumstances. For example, if you’re buying a new-build home you usually need to offer a minimum of 15% deposit, whereas the typical minimum deposit is only 5%. You may also need a higher deposit if you have bad credit or are buying a non-standard construction property.
It’s also important to understand whether you legally qualify as a first time buyer in the eyes of the lender, as there are some grey areas. The table below clarifies those individuals who do and don’t qualify as first-time buyers for mortgage purposes
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Circumstances |
First-time Buyer? |
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Have previously owned any home in the UK or abroad, either individually or jointly |
No |
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Inherited a property that you either have or haven’t lived in |
No |
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Have owners commercial property inthe UK or abroad, but no residential property |
Yes |
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Buying a home jointly with someone else who has previously owned a home |
No |
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Have never owned or inherited a residential property anywhere in the world |
Yes |
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An Agreement in principle, also known as a Mortgage in principle (MIP) and a Decision in principle (DIP) is the initial document provided by a lender outlining how much they could lend you if you made a full application with them. This is not a binding agreement, and you can apply for multiple AIPs prior to making your application.
These can be obtained directly from a lender, or from a mortgage broker, like ourselves, and are free of charge. You’ll need to provide details of your financial circumstances and income to obtain one.
Find your ideal first-time buyer mortgage with us
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
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