Speak to an expert
0191 300 9124
Taking the first step towards home ownership can feel daunting, but for first-time buyers, it's the start of an exciting journey towards creating a place to call their own.
We are here to help you get your first steps onto the property ladder, every step of the way. The mortgage process can be daunting for first time buyers with big decisions like; which type of deal should you go for and how big a mortgage will you be able to take out.
These aren’t the only issues first time buyers have to worry about. Steep property prices in many areas of the country mean some only manage to save a small deposit, restricting their mortgage options.
Therefore, first-time buyers should work with a broker they can trust. At Hello Mortgage we will take the time to fully understand your affordability and needs to ensure we find a mortgage that works for you.
What is a mortgage?
It's a big loan used to purchase a property. The loan is secured against the property and tends to be offered by lenders such as banks or building societies. Challenger banks and specialist lenders also operate in this sector, with subprime lenders as an example.
You must have a deposit
A deposit is a large upfront payment, payable on completion of your purchase, and is held by your solicitor. Typically a lender will ask for a 5% deposit but this can be as high as 15% for bad credit mortgages. The larger the deposit the smaller the loan. The deposit is based on the purchase price, so if you want a £200,000 home and the loan to term (LTV) is 95% you would need to have cash of £10,000 being 5%.
The loan is long term
The number of years you choose to pay your mortgage over is known as the "term". Most lenders offer mortgage terms from 5 to 40 years, but this depends on your age, type of work, and expected retirement age.
Types of repayments
You can take a mortgage that’s interest only or capital and interest. With an interest-only mortgage, you pay the interest only monthly and make NO contribution to the loan capital. This means you only ever pay the interest and must pay the total loan upfront. With a repayment mortgage, or interest and capital, you pay off the loan and interest monthly. At the end of the repayment term, you would have paid the loan and interest in full and have nothing more to pay.
A repayment mortgage does cost more monthly than an interest-only one but lenders will expect you to have a repayment vehicle with an interest-only mortgage. Depending on the investment this could make your payments the same as or more than a repayment mortgage.
Types of rates
Fixed or variable? A fixed-rate mortgage guarantees your mortgage payments over the product term (a 3-year fixed deal for example). Regardless of what happens with the Bank of England's base rate, your mortgage repayments are fixed for the term. With a variable-rate mortgage, your repayments can be less predictable. There are many variations of a variable rate mortgage such as capped, tracker, cap, and collar, it is worth discussing the risks with your Mortgage Broker.
You are a first time buyer if:
You are not a first time buyer if:
For many first-time buyers, there is no one mortgage solution that fits all circumstances. The best option for a first time buyer may vary depending on their personal requirements and budget.
The most important thing to consider when looking for a mortgage as a first-time buyer is to find one with suitable features, such as:
It is important for first-time buyers to shop around and compare different types of mortgages before making a decision.
It is also beneficial to speak with one of our advisors who can help guide you through the process and provide advice tailored to your individual needs. With the right advice, you can find a mortgage that fits your budget and gives
The amount you can borrow will depend on a variety of factors, including your credit rating and income, as well as the type of mortgage you wish to take out. Generally speaking, first-time buyers can typically borrow between 3.5 and 5 times their annual salary or joint combined salary when taking out a mortgage, depending on their credit score and lenders' criteria.
It is important to bear in mind that this amount may differ depending on your personal circumstances and the type of mortgage you take out. It is recommended to speak with one of our advisors who can provide tailored advice for first-time buyers in order to find the right mortgage solution for their needs.
There are three ways to own a property, however, we are Mortgage Brokers and not Solicitors. We'd always recommend you speak with your conveyancer if you have any property ownership questions.
At Hello Mortgage we will always talk to you about protection. This isn't a sales tack-tick but an integral part of our advice journey to protect you, your family and your home.
If you are unable to pay your mortgage payments due to an accident, sickness, unemployment or death of the main breadwinner the lender can repossess your property.
If you are struggling to pay your mortgage or any other loan secured against your property you MUST speak to the lender in the first instance.
Lorem ipsum dolor sit amet consecte tur adipiscing elit semper dalar consectur elementum tempus hac.
Lorem ipsum dolor sit amet consecte tur adipiscing elit semper dalar consectur elementum tempus hac.
Lorem ipsum dolor sit amet consecte tur adipiscing elit semper dalar consectur elementum tempus hac.
To apply for a first-time buyer mortgage, you will typically need to provide the following documents and information:
Your mortgage broker will guide you through the process and let you know if any additional documents or information are required. It's important to be prepared and organised with all the necessary documentation to facilitate a smooth mortgage application process. You can upload all documentation through your online portal once you have signed up to us.
Here are some schemes that were available at the time:
Rated Excellent - 4.8 out of 5 on Trustpilot
.png){kind=logo}
Nicola was absolutely magnificent. She lined up the best mortgage offers based on the deposits I proposed, twice after I pulled out of the house I was initially buying. She kept me up to date and supported me throughout the entire process. Would highly recommend.
The experience as a whole was 10/10, Nicola has made this entire process so easy and painless. She assisted us every single step of the way and I couldn’t be more thankful. I would recommend Hello Mortgage to everyone.
We dealt with Nicola, throughout the process she was attentive, clear and timely with her advice and support. Great personal service.
Nicola was fabulous from start to finish. No question was a silly one and she was always great at getting back to me in a timely fashion. Nicola, 11 out of 10. You were brilliant and I thank you again for all the hard work you put into.
As a first time buyer the thought of going through the whole mortgage application was daunting. From start to finish Nicola was very helpful, keeping me up to date with every bit of the application. 10/10, I couldn’t have done it without Hello Mortgage
Our experience with hello mortgage couldn’t be any better. From our first meeting Nicola was really helpful explaining the whole process in detail (for 2 first time buyers this was great). Nicola kept in touch when needed and helped us a lot.
Having a 'consent to let' on one property and needing another mortgage, we weren't a straight-forward case, however, Nicola went above and beyond to find the best lender for our position, constantly communicating during the process. Would highly recommend!
Would highly recommend Hello Mortgage! 1st time buyers and Nicola went out of her way to ensure we were getting the best mortgage! She went over and beyond, even calling us back from home to discuss the mortgage offer with my partner when he came in from work. We will deffo be back when needed!
They kept me sane through everything. Was responsive, knowledgable and friendly with every query I had. I finally have my house, with the best mortgage rate and help I’ve ever received. If/when I ever move home I’ll be using Hello Mortgage again and I couldn’t recommend them more.
As a first time buyer, I was sometimes confused by the mortgage jargon but Dan explained everything perfectly, so I was always aware of what was happening and felt a real understanding of the process. If you are thinking about using a broker, I would not hesitate to recommend Dan.
Got remortgage in less than 5 weeks. The service from Hello has been outstanding from beginning to end; fast, efficient, mortgage rate, payments much better than expected, knowledgeable, honest advice and flexible appointments are just a few of the reasons I will definitely be using Hello Mortgage again.
If you are looking to secure the best mortgage deal, Hello Mortgage is the go-to broker for all your needs. With their wealth of experience and knowledge, they cover the entire market, ensuring they find the most suitable mortgage product for you. As a client, you can breathe easy knowing that they are directly authorised by the Financial Conduct Authority (FCA). Furthermore, Hello Mortgage is dedicated to offering you top-notch service by providing free initial advice, granting you access to intermediary-only mortgage deals, as well as customising weekend and out-of-hours appointments to fit your schedule. Their certified advisers, with a minimum qualification of CeMAP III and CeRER, make sure that you fully understand the process and receive the best possible guidance. And for those in need of a conveyancing firm, Hello Mortgage partners with an exclusive discounted firm, saving you even more money and stress. Make the right choice by choosing Hello Mortgage as your broker, and leave your mortgage concerns to the experts.
Delving into the world of mortgages can be an overwhelming experience, especially if you're a first-time homebuyer. This is where a mortgage broker can come to your rescue, helping you navigate the complexities of the mortgage process, save time, and potentially save you money as well. Acting as a liaison between you and the mortgage lenders, these professionals use their in-depth industry knowledge and connections to find the most suitable deal for your needs. As they have access to a wide range of lenders and products, they can provide you with more options than a single bank would, increasing the chances of securing a favourable mortgage rate. Additionally, working with a mortgage broker can significantly alleviate the administrative burden; they'll guide you through the application, handle necessary documentation and manage communications on your behalf. In essence, they're your personal mortgage concierge, supporting you throughout this vital financial decision, ensuring it is tailored to your unique circumstances, and simplifying the entire process.
Hello Mortgage
Net Promoter Score
Typically, a first-time buyer is someone who has never owned a property before. However, eligibility criteria can vary depending on the specific mortgage product and government schemes. Some schemes may have additional requirements, such as income limits or specific regional residency criteria.
While having a good credit score is generally advantageous when applying for a mortgage, it's still possible to obtain a mortgage as a first-time buyer with a lower credit score. Lenders may have specific mortgage products tailored for individuals with less-than-perfect credit, although the terms and interest rates may be less favourable.
The deposit amount required for a first-time buyer mortgage can vary depending on several factors, including the lender's requirements and the specific mortgage product. In the UK, it is common for first-time buyers to aim for a deposit of at least 5% to 10% of the property's purchase price, although larger deposits can often result in more favorable mortgage terms.
When considering your first-time buyer mortgage, it's important to take into account additional expenses beyond the deposit. These costs include:
It's important to consider these additional costs when planning your first-time buyer mortgage.
