First-Time Buyer Mortgages
Buying your first home is an exciting milestone, but it can also feel overwhelming. With so many mortgage options, deposit requirements, and legal processes, it’s essential to have the right guidance. At the UKMortgages, we make the journey easier by providing expert advice and access to a range of first-time buyer mortgage deals.
What is a First-Time Buyer Mortgage?
A first-time buyer mortgage is designed for those purchasing a home for the first time. These mortgages often come with:
✔ Lower deposit requirements – Some lenders accept deposits as low as 5%.
✔ Government-backed schemes – Such as Help to Buy, Shared Ownership, or the First Homes Scheme.
✔ Exclusive mortgage rates – Special deals tailored for first-time buyers.
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How much deposit do I need as a first-time buyer?
As a first-time buyer, you typically need a minimum deposit of 5% of the property price. However, a larger deposit (such as 10% or 15%) can give you access to better mortgage rates, helping to lower your monthly repayments.
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How much can I borrow?
The amount you can borrow depends on several factors, including your income, credit history, financial commitments, and deposit size. Most lenders offer between 4 to 4.5 times your annual salary, but this can vary. Using a mortgage calculator or consulting a mortgage advisor can give you a clearer idea of your borrowing potential.
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When should I apply for a first-time mortgage?
It’s a good idea to get an Agreement in Principle (AIP) from one or two lenders before house hunting. While not a guaranteed mortgage offer, it gives you a clear budget and shows estate agents you’re a serious buyer. An AIP only requires a soft credit check, so it won’t impact your credit score, and there’s no obligation to proceed. It’s typically valid for up to 90 days, giving you time to find the right home. Once you find the right home, you can proceed with a full mortgage application. The process typically takes a few weeks, so early preparation is key.
