First-Time Buyer Mortgages: A Simple Guide to Getting Started

Buying your first home is one of the most exciting steps you will ever take, but it can also feel daunting. Between saving a deposit, understanding mortgage jargon and working out what you can afford, it is easy to wonder where to begin.

At Home Financial, we have helped first-time buyers in Warrington take that first step with confidence. Here is what you need to know before you start.

Why Is a First-Time Buyer Mortgage Different?

First-time buyers are normally expected to put down a higher deposit than home movers, and generally the more you can afford, the better. This can feel like a stumbling block, but there is support available. Our mortgage advisers can talk you through options that may assist you, such as the Lifetime ISA and starter home schemes. You can read more in our guide to the Help to Buy ISA and Lifetime ISA.

How Much Deposit Will You Need?

The size of your deposit affects the range of mortgage products open to you. A larger deposit generally gives you more choice and access to more competitive deals. Start by working out how much you can comfortably save, and remember to budget for the extra costs of buying, such as solicitor fees, surveys and moving expenses.

How Do Lenders Decide What You Can Borrow?

Lenders carry out an affordability assessment based on your income, your regular outgoings and any existing financial commitments, such as loans or credit cards. They will also look at your credit history. Getting your finances in good order before you apply can make a real difference, so it is worth reviewing your credit report and avoiding new credit commitments in the months beforehand.

If you are self-employed or work as a contractor, the process is slightly different, but it is very achievable. Take a look at our tips for applying for a mortgage when self-employed.

Why Use a Mortgage Broker?

Often, applicants do not get the best possible deal because they have only explored a limited number of mortgage products. At Home Financial, we have access to thousands of mortgage products and can match you with the right one for your circumstances. We also handle the details, so you do not have to.

Our top tips for first-time buyers offer more practical advice for the journey ahead.

Think About Protecting Your Home Too

Buying a home is a big commitment, and it makes sense to think about how you would keep up with repayments if your circumstances changed. Our protection services include income protection, critical illness cover and home insurance, helping you safeguard your new home and your family’s future.

Ready to take the first step? Contact our team today to arrange a conversation.

FAQs

When should I speak to a mortgage adviser?

The earlier the better. Speaking to an adviser before you start viewing properties means you will know what you can realistically borrow and can move quickly when you find the right home.

Do I need to pay a fee for mortgage advice?

Typically, we do charge a fee for arranging a mortgage, although the actual fee depends on your circumstances. Our standard fee is £699, but we reserve the right to charge up to a maximum of 0.5% of the loan amount for specialist scenarios.

Can schemes like the Lifetime ISA help with my deposit?

They can for some buyers. The Lifetime ISA, for example, is designed to help first-time buyers save for a first home, but there are rules around eligibility and withdrawals. An adviser can explain how it might fit into your plans.

Regulatory Note

Home Financial NW Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority. FCA Number: 827318.

Your home may be repossessed if you do not keep up repayments on your mortgage.

As with all insurance policies, conditions and exclusions will apply.