Free Mortgage Advice for First-Time Buyers
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Hello Mortgage offers expert advice, whole-of-market access, and free consultations to first time buyers, standing out with personalised support and flexible appointments.
Whole of Market
As a whole-of-market broker, Hello Mortgage gives you access to the widest range of lenders, ensuring the best first time buyer mortgage deals.
We have our own conveyancers
By keeping everything under one roof, we ensure faster turnaround times, seamless coordination, and clear communication at every step.
Free Advice for First Time Buyers
We offer free advice to first time buyers, giving you expert guidance without cost or commitment, so you can explore your options with confidence.
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First Timer Buyers - A basic overview
Get free initial mortgage advice tailored to your situation.
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What is a mortgage?
A mortgage is a substantial, long-term loan used to purchase a property. The loan is secured against your new home, meaning the lender can take possession of it if you fail to keep up with repayments. These loans are typically provided by high street banks and building societies, though specialist and challenger banks also operate in the market to help those with complex or less-than-perfect credit histories.
The Deposit Explained
A deposit is the upfront cash you contribute toward the purchase price of the home. It is paid on completion of your purchase and handled by your solicitor.
Loan-to-Value (LTV): The larger your deposit, the smaller your loan—and usually, the better the interest rate you will be offered. For example, if you want to buy a £200,000 home with a 5% deposit (£10,000), your mortgage will cover the remaining 95%. This is known as a 95% LTV mortgage.
- How much do you need?: Lenders typically require a minimum deposit of 5% to 10%, though you may need up to 15% or more if you have poor credit.
- Loan-to-Value (LTV): The larger your deposit, the smaller your loan—and usually, the better the interest rate you will be offered. For example, if you want to buy a £200,000 home with a 5% deposit (£10,000), your mortgage will cover the remaining 95%. This is known as a 95% LTV mortgage.
The Mortgage Term
The "term" is the number of years you choose to spread your mortgage repayments across. Traditionally, terms were 25 years, but most lenders now offer terms ranging from 5 to 40 years. The right term for you depends on your age, income, and expected retirement age. A longer term lowers your monthly payments but costs you more in interest over the life of the loan.
Types of Repayments
You generally have two options for how you pay back the loan:
- Repayment (Capital and Interest): This is the most common route for first-time buyers. Every month, you pay off a portion of the actual loan (the capital) plus the interest. By the end of your mortgage term, you will own your home outright with nothing more to pay.
- Interest-Only: You only pay the interest on the loan each month. This makes monthly payments much cheaper, but you make zero contribution to the actual loan amount. At the end of the term, you still owe the original amount you borrowed in full. Lenders require a strict, pre-approved "repayment vehicle" (like an investment portfolio) to prove you can pay off the lump sum at the end.
Types of Interest Rates
The rate you choose dictates how stable your monthly payments will be.
- Fixed-Rate Mortgages: Your interest rate is locked in for a set period (typically 2, 3, or 5 years). Regardless of what happens to the Bank of England's base rate, your monthly payments will not change. This provides excellent budgeting security. Once the fixed term ends, you usually revert to the lender’s Standard Variable Rate (SVR) unless you remortgage.
- Tracker Mortgages: A type of variable rate that tracks the Bank of England base rate, plus a set percentage. If the base rate goes up, your payments go up; if it falls, your payments fall.
- Discounted-Rate Mortgages: This offers a set discount on the lender's Standard Variable Rate for an introductory period. Because the SVR can change, your monthly payments can still fluctuate.
- Capped Mortgages: A variable rate mortgage that fluctuates but comes with a "cap" or ceiling limit. Your rate can rise and fall, but it is guaranteed never to exceed a certain percentage during the agreed period.
- Standard Variable Rate (SVR): This is the lender's default rate. It is usually higher than fixed or tracker deals and can be changed by the lender at any time. You generally want to avoid sitting on an SVR for long periods.
- Offset Mortgages: This links your savings account to your mortgage. Your savings are deducted from your mortgage balance before interest is calculated. If you have a £150,000 mortgage and £20,000 in savings, you only pay interest on £130,000.
Are You a First-Time Buyer?
The exact definition matters, especially for stamp duty relief and specific first-time buyer mortgage products.
You ARE a first-time buyer if:
- You have never owned a residential property in the UK or anywhere else in the world.
- You do not have a share of ownership in any residential property. (Owning purely commercial property with no living space attached does not disqualify you).
You ARE NOT a first-time buyer if:
- You have previously owned, or currently own, a share of another property (including joint ownership with parents, a spouse, or a partner).
- You are buying a second residence or buy-to-let.
- You inherited a residential property.
How Much Can You Borrow?
For most first-time buyers, lenders will offer between 3.5 and 5 times your annual salary (or your combined joint salary if buying with someone else).
However, your total borrowing capacity is heavily influenced by:
- Your credit score and history.
- Your deposit size.
- Your regular monthly outgoings (debts, childcare, transport).
- The lender's specific affordability criteria.
Taking the Next Step
Because there is no single "best" mortgage, finding the right fit requires comparing options across the market.
- Speak to an Advisor: We highly recommend speaking with one of our mortgage advisors. They can provide tailored advice based on your individual budget, guide you through the application process, and ensure you secure a product with features that suit your lifestyle.
- Find Your Property: Once you have a mortgage agreement in principle, you are in a strong position to start viewing homes. Registering with a recommended estate agent like Estatio will ensure you are immediately notified about new properties that hit the market and match your criteria.
FAQs
Find answers to your most pressing questions about
First Time Buyer Mortgages below
The deposit required for a mortgage typically ranges from 5% to 20% of the property’s value. However, the amount you need can vary depending on the type of mortgage and the lender. A larger deposit may help you secure a better interest rate.
Your credit score is only part of what a lender considers, having a low credit score isn't really a problem providing you have no adverse credit.
A mortgage application typically takes between 1 and 4 weeks, sometimes longer. The application process is dictated by how quickly you can send us your paperwork, the lenders valuers availability and the results of any home buyers report you decide to opt for.
Yes, self-employed individuals can still apply for a mortgage. However, lenders typically require additional documentation to assess your income and financial stability. You may need to provide your latest tax returns, bank statements, and proof of consistent income over a period of at least 1 to 2 years.
Conveyancing refers to the legal process of transferring property ownership from the seller to the buyer. It involves tasks such as checking the legal title of the property, conducting searches, preparing contracts, and handling the final exchange of funds. At Hello Mortgage, we have in-house conveyancers to guide you through the entire process, ensuring everything is handled smoothly and efficiently.
To apply for a mortgage, you’ll generally need the following documents:
- Proof of income (payslips, tax returns, or bank statements)
- Identification (passport, driver’s license)
- Proof of address (utility bills, bank statements)
- Details of any debts or existing loans
- Deposit confirmation (bank statements showing your deposit savings) These documents help lenders assess your financial situation and ability to repay the loan.