First Time Buyer

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First time buyers looking to get onto the property ladder in the current economic climate may find it more difficult in some respects, but if you have savings that you can put towards a deposit you may actually be in a stronger position than before. Mortgage providers are no longer prepared to offer first time buyers a loan for the full property value, and you will usually find that a 20-30 percent deposit is required for you on most first time buyer mortgage deals, although there are a few deals out there with higher lending rates if you have a good credit history.

As a first time buyer, it is not all doom and gloom. To provide a much-needed boost to the property market and to support first time buyers, the government have pledged to waive stamp duty (the tax on property purchases) if you are buying a property worth up to £175,000 until December of this year. Many mortgage lenders will also be able to offer you competitive first time buyer (mortgage deals at the moment, since the Bank of England base rate (used as a guideline for setting UK lending rates) is at an all-time low. The most important first step is to decide which type of mortgage deal you require, and for this we would recommend that you speak to a qualified mortgage advisor. By filling out our short form, you can request a callback from an advisor within the SimplyFinance network. You can also use our extensive list of rates tools and calculators to find out more about the repayments due on different types of first time buyer mortgage.

Tips for the First Time Home Buyer


  • Work on your credit rating.  It might sound strange, but you will be more likely to be successful in your mortgage application if you have already had a history of borrowing money.  Those with no credit history will have a very low credit score with most lenders.  Therefore, for perhaps six months or a year before you plan to buy, take out a credit card and pay off the full balance in time each month.
  • Pay off your outstanding debt. It's best to go into a new mortgage with as few outstanding debts as possible. Pay them off before starting to look for a mortgage, and this includes unsecured debt such as overdrafts or small personal credit loans.
  • Know how much you can afford. Before finding a mortgage lender, get an idea of how much you can realistically afford to borrow. Your lender will help you refine this estimate, and will use your salary (and your partner's, if you are applying for a joint mortgage) as a guide to how much to lend you. Calculating the true cost of your mortgage is so important when you are budgeting, because a valuation, conveyancing, surveying and arrangement fees all eat into your budget.
  • Research the types of mortgage loans. There are many different types of UK mortgages. Have a look on the internet for initial guidance about the types of mortgage available to you and then make an appointment to speak with a qualified financial adviser before proceeding with an application.
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