First Time Buyers Guide & Tips

A first-time buyer is someone who has never owned a residential property before. This includes leaseholds and freeholds.

A mortgage is a loan from a bank or building society towards the total cost of the house you want to buy. Most run for 25 years but can be shorter or longer. This loan is secured against your property’s value until you pay it off.

Most lenders will require a 10% deposit, but some may let you buy with 5%. For instance, if the house you’ve set your eyes on costs £150,000, your deposit needs to be at least £15,000. Your lender will lend you the remaining 90%, known as Loan-to-Value (LTV).

As a general rule, the bigger your deposit, the more mortgage deals you can access.

Buying your first home can seem daunting, but there are a few things you can do to increase your chances of getting a mortgage.

1. Check your credit score

Most lenders will accept your mortgage application if you have a good credit score – a description and prediction of your financial behaviour. It’s a good idea to register on the electoral roll and get a credit card to improve your rating.

2. Ensure you can afford your monthly payments

Once you’ve checked your credit score, you’ll need to understand if you can afford to buy. Consider how much you can pay monthly, including extra costs like bills, food and leisure. A good practice is to put together a budget before you start house-hunting so you know exactly what to look for.

3. Explore the different mortgage types

Finding the right mortgage deal for your unique situation can be tricky, with so many options. Learn more about the different mortgage types in our comprehensive guide to make an informed decision.

4. Factor in the other costs of buying a home

Other costs come with buying your first home, including:

• Conveyancing or solicitor
• Estate agent
• Insurance
• Valuation
• Survey
• Stamp Duty
• Removal

Our guide to the costs of buying a home explores each in detail.

Stages of the mortgage application process

Now that you know how much you can afford, it’s time to start the application process. Below are the most important stages:

Task	Time
Finding the right mortgage	1-3 days
Getting a mortgage in principle	24 hours
Applying for a mortgage	3-6 hours
Getting your mortgage valuated	1-2 weeks
Receiving a mortgage offer	2-4 weeks

 

Our homebuying guide has everything you need to know about the process.

Help for first-time buyers

If you’re a first-time buyer, you may be eligible for unique low-deposit schemes.

Deposit Boost

If you have a 10% deposit, we could boost it with an additional 5% of the sale price. This way, you can borrow less from a lender and secure a more competitive mortgage rate.

Deposit Unlock

The Deposit Unlock scheme helps you buy your first home with just a 5% deposit. It’s available on new build properties of up to £750,000.

Kickstart

Kickstart is a shared ownership scheme designed to help first-time buyers get onto the property ladder. You can buy up to 75% of a brand-new home and pay rent on the remaining share.

Parent Power

If you expect to receive financial support from your family when buying your new home, our Parent Power scheme can help. We could match your deposit or buying costs by 5% of the property’s purchase price.

First Homes

With this Government-backed scheme, you can buy a home with a 30% discount on the market value. Homes can be up to £250,000 (£420,000 in London) after the discount is applied.

Explore energy-efficient homes across the UK. Our 2 and 3 bedroom new build houses are ideal for first-time buyers, boasting ample space to play, dine and relax.

Contact our Sales Advisers today to reserve your new home.