First Time Buyer Mortgage Advice, Mortgages For First Time Buyers

As a first time buyer, you’re likely to have a lot of questions. After all, buying a property is a huge decision and you want to make sure you find a home you love, at a price that you will be able to afford for the foreseeable future. It’s best to start looking at the options as early as possible so that you know how much you can offer. Start by using our mortgage calculators to figure out roughly how much you can afford, then speak to a mortgage adviser who will help you explore the deals that are available and explain the various options to you.

Your Options

Fixed Rates

A fixed rate does what it says on the tin- the rate and your payment are fixed for a certain number of years.
You will know exactly what is coming out of your account each month allowing you to budget easily.
It does not matter what happens in the wider market and world - when you are on a fixed rate it will not change your payments.
Once your fixed rate ends you can switch to a new fixed or variable rate with the same lender or a different lender.
Our mortgage advisers will explain the options in detail and help you decide which is best for you.

Variable Rates

Variable rates are linked to benchmarks like the Bank of England Base Rate and will change every few months.
Your payments will therefore rise and fall every few months depending on what your rate is linked to and what is happening in the wider market.
Some lenders will have ‘Capped and Collared’ Rates giving an upper and lower limit that your rate will remain within.
Depending on the lender you select, they may allow you to switch to one of their fixed rate mortgages with no further credit checks and without penalty.
Speak to a mortgage adviser and find out what might be possible for your individual circumstances.

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Repayment Mortgage

A repayment mortgage works like any other type of loan that you may be familiar with.
You borrow the amount you need to buy your house (minus a deposit) and you pay that all off over an agreed term, such as 25 years.
You may choose a fixed rate mortgage, so that the interest rate is stable for typically 2-5 years, giving you predictable monthly repayments. There will be fees and conditions in place and if the interest rate falls you could be paying a higher rate.
Alternatively, you can opt for a variable rate mortgage which gives you more flexibility but will be higher than a new fixed rate mortgage.

Interest Only Mortgages

With an interest only mortgage you only pay the interest on your loan and the original amount your borrowed stays the same. It can be a good option when you are starting out and you want to keep your monthly repayments as low as possible, however you must have a suitable repayment vehicle in place.
Due to the higher risk to the lender, these are typically not available for First Time Buyers.

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Overpayment Options

If you want the flexibility to make occasional or regular overpayments when you are able, check that your preferred mortgage allows you to overpay and what the conditions are.

Repayment Holidays

Do you want the security of knowing that you can pause your mortgage payments for a few months if something unexpected happens? Make sure you choose a mortgage with payment holiday options.

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Offset Mortgage

Some mortgages work in tandem with your savings to reduce your monthly payments or pay your mortgage off sooner. Tell your mortgage adviser if you want to look at offset mortgages.

Future Plans

Before making a final decision think ahead and take into account any major life changes such as starting a family or retiring, which could affect your ability to manage your repayments.

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What You Need To Know

What are the early repayment charges if you want to pay off all or some of the mortgage before the end of the fixed term?
What are the set up fees?
Are there any additional terms and conditions?
Apply well in advance of your preferred moving date to secure the best rates as many are only available for a limited time
If the interest rate drops during the application process you won’t necessarily miss out, you can change to the lower one
Don’t take out any new finance while going through the application process, this can result in your mortgage being declined
You must take out buildings insurance as part of any property purchase, be sure to factor this into your monthly budget

Testimonial

Professional, knowledgeable and efficient service from the start of the process.

Vicky Allan

A mortgage adviser will take time to understand your circumstances and financial situation, as well as your future plans, and will search through all the mortgages available on the market to find the ones that suit your needs most closely.

We’d recommend starting the mortgage process before you start house-hunting as you need to be confident in how much you can borrow and how much this will cost you each month.

Speak to us today and arrange an appointment to make a start or just find out more about how it all works.

First Time Buyer Mortgages

Your Options

Fixed Rates

Variable Rates

Repayment Mortgage

Interest Only Mortgages

What To Consider

Cashback Deals

Overpayment Options

Repayment Holidays

Offset Mortgage

Future Plans

What You Need To Know

Testimonial

Vicky Allan

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