MORTGAGES

First Time Buyer

Get In Touch
Tick this box if you want your details to be stored on our database, which may then be used for marketing purposes. The internet is not a secure medium and the privacy of your data cannot be guaranteed.
Your home may be repossessed if you do not keep up repayments on your mortgage.

Advice and guidance for First Time Buyers

A First Time Buyer is anyone planning to buy their first home to be used as their primary residence. In recent years it’s been difficult for First Time Buyers to get onto the property ladder, however, getting the right knowledge and preparing in advance of your application can be instrumental in obtaining a competitive mortgage offer.

Do I need an Agreement in Principle?

An agreement in principle, also known as a decision in principle, is a conditional mortgage offer from a lender, prior to your full application. This is by no means a requirement but can be beneficial to First Time Buyers.

Obtaining an agreement in principle prior to making a mortgage offer can increase the chance that your offer is given serious consideration by the vendor. First Time Buyers are in an incredibly strong buying position purely because they do not have to sell a property prior to buying and with confirmation via an Agreement in Principle this should ensure any offer made by a First Time Buyer stands out from the crowd.

The additional benefit as a First Time Buyer to obtaining an Agreement in Principle prior to finding a home and making an offer is peace of mind that the offer made can progress through to completion and avoid later disappointment of not being able to subsequently purchase the property you have fallen in love with.

How much can I borrow as a First Time Buyer?

The fact that you are a First Time Buyer shouldn’t determine how much you are offered by lenders. Your loan amount is calculated based upon your financial circumstances and credit score, much like any other applicant.

 

Your mortgage offers are likely to vary from lender to lender, as they all have their own criteria. To get an idea in advance of how much you might be able to borrow, there is a range of free mortgage calculators available online, however the accuracy behind these calculators is based upon input placed within and we would strongly recommend liaising with one of our Mortgage Brokers to ensure delivery of accurate outcomes to avoid disappointment. A Mortgage Broker such as ourselves can also help you check your affordability with many lenders in the touch of a button, saving you time and effort, whilst also checking lending criteria requirements alongside.

How can improving my credit score help?

Alongside your income, your credit score has the most impact on whether or not your mortgage application will be accepted. Before approaching any lenders to apply for a mortgage, it’s essential to be aware of your credit rating, taking steps to improve it, where needed:

 

How to improve your credit score

  • Check that your current address appears on all accounts in your name
  • Remain within 50% of your available credit for any existing credit agreements
  • Ensure you’re on the electoral roll at the correct address
  • Pay instalments on any credit agreements on time and in full, where possible
  • Some will have a low score due to never having taken credit. A special credit builder credit card can be helpful to show yourself as a responsible borrower

How much deposit do I need?

Some, but not all lenders may ask for a higher deposit from a First Time Buyer. For a standard residential mortgage application, you will need a deposit of between 10% and 20%. If you have a low expendable income, it can be difficult to raise a large deposit. There are, however, some government schemes available aimed at helping First Time Buyers, which have more flexible requirements.

What help is available for First Time Buyers?

The Help to Buy Equity Loan Scheme and NewBuy Scheme both give you the opportunity to borrow a loan from the government, tax-free. Both schemes only require a 5% deposit, with the help to buy scheme loaning you a further 20% of the property value and the new-buy scheme giving you access to a 95% mortgage at a lower interest rate.

 

The shared ownership scheme is a particularly helpful option for those on a low income. It makes it possible for you to obtain a share of the property you want to buy, rather than the whole thing. Your mortgage only has to cover the portion that you buy, which means that both the deposit and monthly payments are much more affordable than when you buy 100% of the property. You will have to pay rent on the remaining share of the property, on top of your mortgage, however.

What fees are involved with buying a home?

 

Arrangement Fees

Most mortgage lenders charge an administrative fee for the arrangement of the mortgage. This will vary from lender to lender. You may even find that some specialist lenders offer no arrangement fees for those in certain jobs.

 

Valuation Fees

You will need to have your chosen property independently valued, again, these fees will vary depending on the lender chosen.

 

Legal Fees

The mortgage application process requires the appointment of a solicitor, who will arrange conveyancing and local authority searches, usually payable directly to the solicitor.

 

Stamp Duty

Under normal circumstances, Stamp duty is due on the purchase of all properties and is based upon the value of your home, amongst other things. First Time Buyers currently benefit from an exemption on Stamp Duty on purchases up to £300,000.

How can Mortgage Matchmakers help First Time Buyers?

Buying your first home can be intimidating.


From trying to establish which type of mortgage is best suited to you, through to finding a lender offering competitive mortgage rates to First Time Buyers. Qualified and experienced Mortgage Brokers can be comforting and reassuring throughout the process of making life-altering decisions.


Even the most confident buyer, however, can benefit hugely from Mortgage Brokers’ advice. We have a wide market view, which gives us access to mortgage deals that you won’t find on the high street. This means that we can not only find you the most suitable mortgage deals available but are able to divert your efforts towards those lenders most likely to accept your application.

Your home/property may be repossessed if you do not keep up repayments on your mortgage.
Some Buy-To-Let Mortgages are not regulated by the Financial Conduct Authority.

Happy Clients

barbara kisolo
barbara kisolo
02/10/2023
I was introduced to Mortgage Matchmakers Limited by a friend who had used them before. From the moment we contacted Paul, he walked the journey with us until exchange of contracts. Paul was reachable 7 days a week and would answer his calls even outside the normal working hours. He was constantly updating and advising us on each step of the way including engaging the solicitor severally when things stalled. He provided useful advice whenever we felt like giving up. The fee was far less than what these guys offer and Paul was so patient with us. We are glad we chose Mortgage Matchmakers. Thank you so much Paul. We can't thank you enough.
Suman Pandey
Suman Pandey
19/09/2023
I cannot express enough how grateful my family and I are for the exceptional service provided by Bhavna Grover during our mortgage approval process. In just two short days, Bhavna worked tirelessly to help us secure our mortgage, and her dedication and expertise were truly outstanding. What truly sets Bhavna apart is her unwavering support and her wealth of knowledge in the field. She patiently and thoroughly explained every aspect of the mortgage application process, providing us with invaluable advice that allowed us to make informed decisions. Bhavna's friendly and easy-going demeanor made the entire process feel seamless, and we genuinely enjoyed working with her. Throughout our interactions, Bhavna demonstrated a high level of professionalism and competence. But beyond her professionalism, Bhavna's personal touch was what made our experience truly exceptional. She made us feel comfortable, and her ability to explain complex concepts in a language we could easily understand was greatly appreciated. She was not just a mortgage expert but also a trusted advisor and friend. Thank you, Bhavna Grover, for going above and beyond to help us achieve our mortgage goals.
Chetna
Chetna
06/09/2023
Fantastic service! Mohit and Bhavna were super efficient & quick - more importantly, they were able to get me a great mortgage rate. I loved that they were so responsive and I was able to call/message anytime and they would respond almost immediately. I'm so happy with their service and would highly recommend them!
Tim Bashforth
Tim Bashforth
17/08/2023
If I may start by saying I never leave reviews but in this instance I felt compelled to. As this was my first time getting a mortgage it felt quite daunting but from the first time speaking to Mohit he put my mind at rest and talked me through the process. When I had concerns or questions he was just a phone call away to give an answer and was always happy to help even after three calls in a row when I had forgotten some of my questions. He made the process of getting my mortgage a stress free experience and I would strongly recommend Mortgage Matchmakers to everyone. To be honest five stars just isn't enough! my experience couldn't have been any better, if you are looking for a mortgage adviser look no further and give them a call, you won't be disappointed.
Ayan Sengupta
Ayan Sengupta
10/08/2023
Very informative discussion with Mortgage Matchmakers. Mohit is really helpful and willing to go the extra mile in assisting clients depending on their circumstances.
Diana Terence
Diana Terence
24/07/2023
Mohit thank you for sorting our buy to let mortgage. You've been excellent in giving us good options and advise on terms. Thanks again
Kam Zaman
Kam Zaman
09/07/2023
Paul Asare was fantastic he kept me updated all the time and explained things clearly. I’d recommend this company a lot they were great and gave me the best deal.
Emi
Emi
08/07/2023
I remember 2 years ago I was in a difficult situation in my life and I was looking for a good mortgage advisor. I searched online and Mohit's name came up. I read all his reviews and decided to give him a chance. So we met and OMG, Mohit is such a warm person with such a positive attitude, he told me all the possible options that I had and advised me the best choices for me. But unfortunately things went wrong in my personal life, so I didn't contact Mohit for another 2 years . After 2 years I was afraid to call him again and ask for help with my mortgage (because of last time) but Mohit helped me out again and he was so polite and professional. He tried his best, he was always in contact with me and I had my mortgage offer within a week !!!!!!! Honestly I am so happy I returned to Mohit, he helped me with everything, advice on things and I finally got my mortgage with my name only and it only took him a week! I really couldn't believe things happened so quick 😊 Mohit did something which other brokers couldn't ! I've been told I can't get a mortgage on my own but here I am and I got one with Mohit's help 😊 I will always recommend Mohit to my friends if they need help with their mortgages. Thank you Mohit for everything 🙏
Anthya Fernandes
Anthya Fernandes
12/06/2023
Mohit and Bhavna has been a huge help in my buying process. As a first time buyer and with rates changing all the time due to the economic uncertainty, I've been more than a little out of my depth, and Mohit and Bhavna has done a fantastic job of making the entire process simple to understand, straightforward, and stress-free. For the peace of mind that has given me alone, I could not recommend them highly enough.
Jaideep Pathak
Jaideep Pathak
11/06/2023
Mohit has been extremely professional, responsive and quick in helping me find a great offer. The entire process was seamless and I was surprised how quickly I managed to get an offer. Mohit cares for his clients and patiently addresses all questions. I would highly recommend his services.