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First Time Buyer Mortgage

Helping you get started.

We are specialists in providing mortgage advice to first-time buyers, using our extensive contacts within the property industry to find the best and, in some instances, exclusive mortgage deals for first-time buyers.

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First time buyer mortgage

What is a first time buyer mortgage?

    A first time buyer is someone who has never owned a principal home/main residence in the UK or abroad. A first time buyer mortgage is a mortgage which is only suitable for someone who has never owned a property. There may also be special rates or incentives offered by lenders to help you to get onto the property ladder and buy your first home.

    We save you time and money at a point in your life where both are vital.

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      CALCULATORS

      First Time Buyer Mortgage Calculator

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      Mortgage Repayment Calculator

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      What first time buyer mortgages are available?

      Based on you and your needs your New Mortgage Finance mortgage advisor will compare rates and lenders and recommend the mortgage rate which is most suitable for your specific circumstances.

      Fixed Rate Mortgage

      With a fixed rate mortgage, the interest on your mortgage is fixed at a set interest rate for an agreed period of time, typically between two and 10 years. This type of mortgage could be good if you need to stick to a budget.

      Once the fixed rate deal is over, you’ll be automatically switched to your mortgage provider’s standard variable rate (SVR) unless you choose to find a new deal.

      Variable Rate Mortgage

      Tracker: This type of mortgage has an interest rate that’s tied to the Bank of England base rate. The mortgage changes with the base rate. Most trackers last two or five years, but you can get lifetime (also known as term) tracker mortgages.

      Discount: Another type of variable mortgage, discount mortgages are different from trackers in that they’re not tied to the Bank of England base rate – they’re a bit more unpredictable. Instead, they’re linked to the lender’s standard variable rate (SVR), usually for between two and 10 years. With a discount mortgage, your monthly repayment could fall as well as rise.

      Standard variable rate (SVR): This is the long-term rate of interest that mortgage lenders will be charged once their fixed or introductory discounted or tracker period ends. This is often much higher than the rate you could get during the initial deal term of a mortgage.

      Combination of Fixed and Variable Rate Mortgage

      Offset: Probably the most complicated option, offset mortgages link your savings to your mortgage debt.

      With this type of mortgage you don’t earn interest on your savings – instead, your money is set against your mortgage so that you pay less interest on the debt. Available with fixed or variable rates, offsets are great for paying off your mortgage quickly.

      They also offer a bonus benefit for those in the higher or top tax brackets, as you don’t pay tax on your savings.

      RELATED

      Guide for First Time Buyers

      Find out more

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      First time buyer mortgage calculators

        As a first time buyer we understand that it is important to know how much you can borrow and how much the monthly mortgage payments would be. Use our calculators below to discover what might be available to you.

          How much can I borrow?

          You may be able to borrow:
          Suggested deposit (10%)£ 

          Our simple mortgage calculator can give you an idea of the likely monthly payments you can expect to pay. It is important to note that this mortgage calculator is for guidance purposes only. The figures are based on the simple details you have provided and they may reduce after your bills and credit commitments have been considered.

          Mortgage lenders have their own affordability criteria, therefore it is important you speak to one of New Mortgage Finance’s Mortgage Advisers for further information and a more accurate indication of what products may be available to you and what your monthly mortgage payments are likely to be.

          What will my monthly repayments be?

          please use only numbers no symbols
          Example rate – feel free to adjust
          5
          Payment£ 
          PLEASE NOTE THAT THE INFORMATION PROVIDED IS FOR ILLUSTRATION PURPOSES ONLY AND DOES NOT CONSTITUTE ANY KIND OF MORTGAGE OFFER OR ADVICE.
          YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

          Got Questions?
          Let us help.

          If you’re filling in calculators and really want to speak to a human about your needs – why not get in touch, we’re happy to arrange a callback today.

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          ANSWERS

          How does a first time buyer mortgage work?

          When you apply for a first time buyer mortgage you usually put down a minimum of a 10% deposit against the value of your property. However, often lenders offer special first time buyer mortgage deals where you will only need a 5% deposit. This means that you will have a 90-95% loan to value (LTV).

          There are various first time buyer mortgages such as a fixed or variable rate, capital repayment or interest only. You will also have to decide on the duration you wish the fixed or variable rate to apply. This is usually anything from 2-10 years.

          Over the term of the mortgage (this can be anything from 5-35 years), you will gradually pay off the money that you owe the lender and once fully paid, you will own the property.

          Who is a first time buyer mortgage for?

          A first time buyer is someone who has never owned a principal home/main residence in the UK or abroad. A first time buyer mortgage is a mortgage which is only suitable for someone who has never owned a property. Both applicants must be first time buyers in order to be eligible for any type of first time buyer mortgages. Anyone with an income and a deposit can apply for a mortgage.

          What are my options as a first time buyer?

          If purchasing a property on your own is unaffordable, you can also apply for a mortgage with someone else. There are a number of options such as Joint Tenants which means you own the property jointly and both have equal rights over the whole property or Tenants in Common where you own your home jointly and both have a share in its value, typically 50% each, but it can be a different proportion.  Alternatively, you may wish to opt for a Guarantor Mortgage which provides an additional source of income to meet affordability and eligibility criteria. This is a role usually filled by a parent or another family member.

          The government also provides schemes to encourage first time buyers to get onto the property ladder such as shared ownership where you can buy a portion of your property or Help to Buy, where the government provides buyers with an equity loan.

          Read our First time buyer guide for everything you need to know about getting your foot on the ladder.

          “I used NM Finance this year for a mortgage. I’m a first time buyer and Max and his team made everything so easy and would recommend the service they provided to everyone."

          – L Marshall (Read more Google Reviews)

          Why use us for your first time buyer mortgage?

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          Holding your hand at every step (if that's what you need, of course)

          We will walk through every stage of the mortgage process with you, ensuring that you know what’s coming next. No nasty surprises and a robust way of working that you can rely on.

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          More choice when making one of your first, big life decisions

          We know that we get the best possible results for our customers time and again, because we are a ‘Whole of Market’ mortgage broker. Based on your individual situation we will find the right first time buyer mortgage for you.

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          You have the questions and we have the answers

          We speak to lenders day in and day out – it’s our bread and butter. We are experienced in presenting cases to mortgage lenders. We can advise you on rates, terms, LTV and all the bits in between. Self-employed, adverse credit or straight-forward first time buyer mortgage, we can do it all.

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          We do more than just compare rates

          We can find you better products and better rates, but that’s not all. Through our long term relationships we can offer you exclusive first time buyer products and incentives.

          Got Ideas?
          Get in Touch and Tell Us Your Plans

          Let our experienced mortgage brokers help you to navigate the mortgage market. We will work quickly and efficiently to search the market, liaise between you and the lender and ensure every last detail is taken care of to get your dreams started.

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          Please fill in the form below and one of our team will call you back within 24 hours.

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