SPECIALIZATION
First Time Buyer
Specialist mortgages designed for first-time property buyers, often with lower deposit requirements, government schemes, and additional support. These mortgages help new buyers enter the property market.
What is First Time Buyer?
Understanding the fundamentals and purpose of first time buyer financing
Specialist mortgages designed for first-time property buyers, often with lower deposit requirements, government schemes, and additional support. These mortgages help new buyers enter the property market.
First Time Buyer mortgages are designed for specific property types and investment strategies, offering tailored terms and conditions that differ from standard residential mortgages.
Before pursuing first time buyer financing, it's crucial to understand the requirements and process involved. Specialist brokers can guide you through every step of the application process.
Key Features
Essential characteristics that make first time buyer mortgages unique
Competitive Rates
Access market-leading rates with flexible terms to suit your first time buyer strategy.
Fast Funding
Quick decisions and rapid funding for time-sensitive opportunities.
Flexible Terms
Tailored funding solutions for various development types and scales.
Expert Support
Dedicated specialists to guide you through the entire process.
High LTV Options
Borrow up to 75% of the project value with competitive options.
No Early Repayment
No penalties for early repayment, giving you flexibility in your exit strategy.
Eligibility Requirements
Key criteria you need to meet to qualify for first time buyer financing
Property Requirements
- Suitable property type for first time buyer
- Valid planning permission (if required)
- Clear investment strategy
- Good location and market conditions
Borrower Requirements
- Relevant experience preferred
- Good credit history
- Adequate deposit (varies by type)
- Strong financial position
Application Process
Step-by-step guide to securing your first time buyer mortgage
1
Free Consultation
45 minDiscuss project and funding requirements
2
Application & Documentation
2-3 daysSubmit forms and financial documents
3
Property Valuation
1-2 weeksProperty appraisal and development assessment
4
Lender Assessment
2-4 weeksProject feasibility and borrower review
5
Legal & Monitoring
2-3 weeksLoan agreement and monitoring setup
6
Project Monitoring
OngoingStaged fund releases and oversight
Total: 3-6 weeks
Current First Time Buyer Rates
Latest interest rates and pricing for first time buyer mortgages
Interest Rates
Typical range for first time buyer mortgages
4.0% - 5.5%
3.5% - 6.0%
Deposit Required
Minimum deposit for first time buyer financing
5% - 10%
Min: 5%
Processing Time
From application to completion
3-6 weeks
Average timeline
Rates vary by lender and circumstances. Contact specialist brokers for personalized quotes.
Key Features of First Time Buyer Mortgages
What sets first time buyer mortgages apart from standard options
Lower deposit requirements (5-10%)
Access to government schemes like Help to Buy
First-time buyer specific products and rates
Professional guidance and support
Flexible lending criteria for new buyers
Eligibility Requirements
Detailed criteria for qualifying for first time buyer financing
Borrower Requirements
- First-time buyer status (no previous property ownership)
- Stable income and employment history
- Good credit history and financial position
- Adequate deposit and affordability
- UK residency and age requirements
Property Requirements
- Suitable residential property type
- Good location and market value
- Property in good condition
- Appropriate insurance coverage
- Compliance with lending criteria
Benefits & Considerations
Weighing the advantages and important factors for first time buyer mortgages
Benefits
- Lower deposit requirements than standard mortgages
- Access to government schemes and incentives
- Specialist support for first-time buyers
- Competitive rates and terms
- Professional guidance throughout the process
Important Considerations
- Limited to first-time buyers only
- May have higher interest rates with lower deposits
- Stricter affordability assessments
- Limited to residential properties
- Government scheme restrictions and criteria
Fees Guide
Understanding the costs and fees associated with first time buyer mortgages
Arrangement Fee
Lender setup fee for first time buyer finance
1.5% - 2.5%
of loan amount
Valuation Fee
Professional property and development assessment
£500 - £2,000
one-time cost
Legal Fees
Loan documentation and property transfer
£1,000 - £3,000
legal costs
Monitoring Fee
Fee for monitoring the progress of development work and releasing funds in stages.
£300 - £800
ongoing
Broker Fee
Fee for arranging the development finance. Only charged upon successful completion.
0.5% - 1.5%
on completion
Important Notice
Fees can vary significantly between lenders and depend on your specific circumstances. Brokers will provide you with a detailed breakdown of all costs before you proceed.
Top First Time Buyer Brokers
Verified specialist brokers with expertise in first time buyer financing
Frequently Asked Questions
Common questions and answers about first time buyer mortgages
What deposit do I need as a first-time buyer?▼
A:First-time buyers can typically get mortgages with deposits as low as 5% of the property value, though 10% is more common. Some government schemes may allow even lower deposits with additional support.
What government schemes are available for first-time buyers?▼
A:First-time buyers can access schemes like Help to Buy, Shared Ownership, and First Homes. These schemes can help with deposits and make homeownership more affordable.
Do I qualify as a first-time buyer if I've inherited a property?▼
A:If you've inherited a property, you may not qualify as a first-time buyer for certain schemes and products. However, you may still be eligible for first-time buyer mortgages depending on the lender's criteria.
Can I get a first-time buyer mortgage for a buy-to-let property?▼
A:No, first-time buyer mortgages are typically for residential properties only. Buy-to-let mortgages have different criteria and are not usually available to first-time buyers.
What documents do I need for a first-time buyer mortgage?▼
A:You'll need proof of income, bank statements, identification, and proof of deposit. Your broker will provide a comprehensive checklist of all required documents.
What is the Help to Buy scheme and how does it work?▼
A:Help to Buy is a government scheme that provides an equity loan of up to 20% (40% in London) of the property value, allowing you to buy with just a 5% deposit. The loan is interest-free for the first 5 years.
Can I get a mortgage with a 5% deposit?▼
A:Yes, many lenders offer 95% loan-to-value mortgages for first-time buyers, though you may need to pay higher interest rates and potentially higher fees. Government schemes can also help with smaller deposits.
What is Shared Ownership and how does it work?▼
A:Shared Ownership allows you to buy a share of a property (usually 25-75%) and pay rent on the remaining share. You can gradually increase your ownership over time through a process called 'staircasing'.
Do I need a guarantor for a first-time buyer mortgage?▼
A:Not necessarily, though some lenders may require a guarantor if you have a small deposit or limited income. Guarantors are typically family members who agree to cover payments if you can't.
What are the age restrictions for first-time buyer mortgages?▼
A:Most lenders have minimum age requirements (usually 18-21) and maximum age limits (typically 70-75 at application). Some lenders may offer longer terms for younger borrowers.
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