First Time Buyer Mortgages

Buying your first home is an exciting milestone that’s made simpler with some planning. Here at Jones & Young, we specialise in guiding first-time buyers through the entire mortgage process.

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Compare first time buyer mortgages, covering the whole of the market

How do first-time buyer mortgages work?

Here are some key tips for how to get a mortgage when you are self-employed or freelancing:

1

Check affordability

Calculate deposit, use a mortgage calculator to estimate potential loan amount and payments.

2

Get agreement in principle

Soft credit check giving initial approximation of what you can borrow.

3

Formally apply

Detailed assessment of income, outgoings and credit check. Stress testing on ability to repay.

4

Get valuation and legal work done

Lender values property, you appoint a conveyancer to check the legal suitability of the property and ultimately transfer ownership.

5

Final decision

The lender decides the final mortgage amount you can borrow based on passing the affordability and eligibility criteria.

How to get a mortgage for your first home

As specialist mortgage brokers, we search the whole market to find you the best deal. Here’s our advice:

Credit Score

Check your credit file and take steps to improve your score if needed. This will help you get the most competitive rates.

Deposit

Save as large a deposit as possible - the minimum deposit is 5% of the purchase price, however this is when the lender takes the most risk and you’ll be paying a higher interest rate. The more you put down, the better the mortgage terms you can access.

Get Advice

Get in touch with us to discuss your finances. We'll assess affordability and show the loan amounts and property prices you could potentially take on, then ensure a lender is happy with your credit profile. This allows you to search for homes armed with expert advice.

With over 30 years experience, we’ve helped hundreds of first-time buyers across the country. Get in touch today to start your journey to your first home!

Specialist Mortgage Advice To Help You Secure The Home You Deserve!

90-95% Loan to Value (LTV)

Loan to Value(LTV) options typically 90-95%

Trusted Advice

Clear and concise advice around the best options for your needs.

Communication

Helping customers cut through the noise to understand things their way.

Gross Pay Used

The Lenders average your income over the last 3 months' GROSS pay. Not the net amount from your tax calculations.

Specialist Rates

We offer competitive rates ensuring the best price for our customers

What is a first-time buyer?

Here is an overview of who qualifies as a first-time buyer:

You’re a first-time buyer if:

You’re not a first-time buyer if:

The key criteria is that all parties named on the mortgage must be first-time buyers who have not previously owned residential property or land in order to qualify for government schemes and specialist mortgage deals aimed specifically at helping first-time buyers get on the property ladder.

30+ Years As Mortgage Advisers

Providing business owners and the self employed with mortgage advice

Individual Tailored Advice For Mortgage & Protection

Tailored advice recommended for your personal situation

Whole Of Market Access

Access to the whole of market mortgage market to find you the best deal

What deposit do I need for a first-time buyer mortgage?​

The deposit you need for a first-time buyer mortgage typically ranges from 5% to 20% of the purchase price, with 5-10% being common minimums.

While 5% is viable, first-timers who save larger 10-20% deposits will access better mortgage deals overall. Speak to a mortgage advisor about your specific situation.

Most mortgages require at least a 5% deposit. This allows you to borrow 95% of the property’s value (a 95% LTV mortgage).
While it is possible to get a mortgage with 5% down, a 10-20% deposit is ideal. The bigger your deposit, the less you have to borrow, meaning less risk for the lender, better mortgage rates for you and lower monthly payments.
For example, on a £200,000 home, a 5% first-time buyer deposit would be £10,000. However, with a 10% deposit (£20,000) or 15% deposit (£30,000), you’d likely get approved for better mortgage terms.
Some first-time buyers utilise gifted deposits from family to make their deposit. Government schemes like Help to Buy also help buyers with low deposits to purchase with just 5%.

The table shows how much you’d need to save for a deposit on a £300,000 home.

Cost of Property

Deposit Percentage

Deposit Amount Needed

£300,000

5%

£15,000

£300,000

10%

£30,000

£300,000

15%

£45,000

£300,000

20%

£60,000

£300,000

25%

£75,000

£300,000

30%

£90,000

Types of first-time buyer mortgages

The main types of first-time buyer mortgages are:

Fixed rate

Interest rate stays the same for a set period (2-5 years typically). Provides payment certainty.

Tracker mortgages

Variable rate that moves with the Bank of England base rate. Usually set at a fixed percentage above it.

Discounted variable-rate

Also a variable rate but stays below your lender's standard variable rate (SVR) by an agreed percentage discount.

Offset mortgages

Link your mortgage to a savings account to reduce interest payments. You pay interest on the net balance between what you owe and your savings.

Interest-only mortgage

You only pay the interest portion of your mortgage payment, not repaying any of the original capital borrowed. The full lump sum must be repaid at the end of the mortgage term. This is rarely offered to first-time buyers nowadays.

Joint borrower sole proprietor? After guarantor? This is where a family member enters into the mortgage contract with you to help boost your affordability, but they do not go on the deeds to the property. This enables you to benefit from the stamp duty reduction as a first time buyer, but use some of their income in order to borrow what you need. They are jointly liable for the mortgage.

There is no one “best” type – it depends on your preferences, circumstances and the specific mortgage deals available. Most first-time buyers opt for fixed rates currently to give themselves payment certainty.

What should I consider before applying for a mortgage?

Here are some key things to consider before applying for a first-time buyer mortgage:
Monthly repayments
Most mortgages require at least a 5% deposit. This allows you to borrow 95% of the property’s value (a 95% LTV mortgage).
The economy
Broader economic conditions affect mortgage availability and interest rates. For example, the cost-of-living crisis has led to rising mortgage rates after years of historic lows.
Budgeting
Budget for mortgage payments plus ongoing household bills, maintenance and other ownership costs. Keep saving money monthly even after moving in.
Building a deposit
Save as much deposit as possible to borrow less and get better mortgage rates. Using government schemes can help those with low savings.
Credit rating
Check your credit file and improve your score before applying. Good credit means better mortgage terms.
Mortgage type
Choose from fixed rate, tracker or other options. Consider security of payments versus interest rate savings.
Affordability
Be realistic about the loan amount you need vs. the repayments you can afford each month.
Other costs
Legal fees, valuation fees and moving costs also need to be budgeted for upfront. Factor these into your financial planning.

How much can I borrow with my first-time buyer mortgage?

As your dedicated mortgage brokers, we’ll ensure you only borrow what is affordable and sustainable based on your financial situation. Here’s what we look at:

  • We thoroughly examine your credit history to determine the rates lenders can offer you. Good credit means better mortgage terms.
  • Looking closely at your salary, additional incomes, outgoings and existing debts allows us to calculate suitable repayment amounts for you every month.
  • The size of your deposit is also crucial – the more you put down, the less you need to borrow. Government schemes can assist with deposits.
  • We stress test mortgage offers across potential interest rate rises. Making sure you can repay a mortgage if rates increase is vital for any first-time buyer.

The amount you end up borrowing needs to fit your lifestyle and spending. We’ll ensure you have money leftover every month for essentials, savings and enjoying your new home! Get in touch to start exploring your first mortgage options.

Read What Our Recent Clients Say About Our First Time Buyer Mortgage Services

What should I consider before applying for a mortgage?

Lifetime ISA – 25% bonus from the government on savings annually up to £1,000 each year. Bonuses accessible once you turn 50 or are buying your first home.
Right to Buy

Allows eligible council or housing association tenants to purchase their rental home. The maximum discount is £96,000 across England, except in London boroughs where it is £127,900.

First Homes Scheme
New properties sold by developers at 30-50% below market price to qualifying first-time buyers, with priority given to key workers, veterans and widows/widowers.
Shared Ownership
Co-purchase between 25-75% of a home initially through mortgage financing, paying subsidised rent to the landlord on the remaining share. Staircasing options allow you to increase ownership share over time.
Mortgage Guarantee Scheme
Enables participating lenders to offer 5% deposit mortgages for first-time buyers, with the government effectively backstopping 95% of the loan. Runs until the end of June 2025 currently.

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Frequently Asked Questions aout First Time Buyer Mortgages from Jones & Young

Can I get a first-time buyer mortgage if I’m self-employed?

Yes, first-time buyer mortgages are certainly available if you’re self-employed. The key requirements are:

  • 1 years minimum of accounts/tax documentation showing consistent income
  • Bank statements further evidencing your earnings
  • Meeting standard affordability criteria based on your income and outgoings

As specialist brokers experienced with self-employed buyers, we can match you with appropriate lenders. Get in touch to discuss the documentation you’ll need to provide.

Apply for mortgage pre-approval once you’ve built some credit history and are ready to seriously start viewing properties. This allows you to house hunt armed with expert confirmation of your budget.

Other costs to budget for when buying your first home include:

  • Legal fees (conveyancing)
  • Mortgage arrangement fees
  • Valuation and survey fees
  • Stamp duty (if applicable)
  • Removal expenses
  • Initial repairs/redecorating
  • Ongoing maintenance funds
  • Buildings insurance
  • Furniture
  • Appliances

Ensure you have savings to cover the upfront expenses. And factor the ongoing ownership costs into your regular household budget. Getting independent mortgage advice considers the entire financial picture to ensure homeownership is sustainable.

The loan-to-value (LTV) ratio is the percentage of the property’s value that you need to borrow with a mortgage. It is calculated by dividing the loan amount by the property’s purchase price.

For example, if you buy a £200,000 home with a £40,000 deposit, needing a £160,000 mortgage, the LTV would be £160,000/£200,000 = 80%.

The lower the LTV, the less risk for lenders, so larger deposits giving lower LTVs qualify buyers for better mortgage rates typically.

Having bad credit does not mean you cannot get a mortgage. Some lenders offer mortgages designed for people with bad credit. But these can include higher interest rates and fees.
Anyone can apply for an interest-only mortgage. It could be harder to get accepted for one than a repayment mortgage. This is because lenders will need to see evidence that you’ll be able to afford the lump sum to pay off the mortgage at the end of the term.
Yes, there are some options with no deposit, some are based on your ability and track record of paying rent, some require a family member to either put some of their home up as collateral or lodge a deposit in a dedicated savings account for a number of years until you have proven your ability to service the mortgage.

A joint mortgage is when you take out a home loan with one or more other applicants. This could be with a spouse, partner, family member or friend.

It works the same way as a standard mortgage, but has multiple borrowers named who are jointly responsible for repaying the loan. All applicants must meet the lender’s affordability and eligibility criteria.

If one person is unable to make repayments, the other borrower(s) must cover them to avoid defaulting. Joint mortgages allow more than one party to share ownership and financing obligations on a property.

A guarantor mortgage involves a third party (usually a family member or close friend) guaranteeing to cover the mortgage repayments if you are unable to pay them yourself.

It allows prospective buyers who may not meet standard affordability criteria on their own income or credit history to access home financing. The guarantor takes on an obligation to repay the mortgage on the borrower’s behalf if they default on payments for any reason.

Shared ownership allows first-time buyers to co-purchase a home with a housing association. You buy between 25-75% of the property value upfront with a mortgage, based on affordability, and pay rent on the rest.

When buying your first home, you can purchase the freehold or a leasehold interest:

  • Freehold means outright ownership of the property and land. You are responsible for maintenance but have no ground rent or service charges.
  • Leasehold means purchasing the right to live in the property for the lease term e.g. 125 years. You must pay fees like ground rent and service charges to the freeholder.

Consider location, property type, fees, and your plans when deciding between freehold vs leasehold.

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