First-Time Buyer Mortgage Advice

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Why Choose Us

0 %
5-star reviews on Google
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years we have been as independent mortgage and protection brokers
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customer satisfaction for finding the best deals on the UK market
£ 0
total donated to various charities

Why Choose Ascot Mortgages

0 %
5-star reviews on Google
£ 0
total donated to various charities
0
years we have been as independent mortgage and protection brokers
0 %
customer satisfaction for finding the best deals on the UK market

What Our Clients Say About Us

5.0 Based on 122 reviews from review us onLucy B. ★★★★★ Having Phil as my mortgage advisor was great from the very start! He is down to earth and speaking to him was always a pleasure. The kindness, compassion and support I have been given all the way through what can be a stressful process was immeasurable. Phil and Jardelle worked as a solid team and was able to make me feel at ease all the way through buying my first home. The team were always available and the communication between everyone was always clear and I felt safe in the hands of the company as a whole. Thank you for helping me buy my first home!Flora R. ★★★★★ I worked with Richard (Protection Adviser) for a couple of days to sort out life and critical illness insurance. Absolutely brilliant, he found me and my husband the perfect policy. Very knowledgeable and easy to get on, he definetely makes things easy to understand. Thank you for the great service provided.Matthew R. ★★★★★ I've dealt with Phil at Ascot Mortgages for a while now and Phil always comes back back to me with the right plan.Keep the good work up!rafal W. ★★★★★ I would thoroughly recommend Phil Greenwood at Ascot Mortgages ltd to anyone looking to seek advice on purchasing a home.Phil was absolutely fantastic. He made the process very smooth and easy and was always there to answer any questions I had.Shahid L. ★★★★★ This company has been truly amazing in constantly giving me the support and help i need for my mortgage and for their continuous work ethic guiding customers like myself and educating them into making the best possible decisions. My special mention goes to Phil Greenwood who deserves every single credit for his brilliant work and communication skills. The more I got to work with Phil, the more he gained my respect as he is a hugely likeable man and possibly the best mortgage advisor yet. Even after I finished my time with Ascot Mortgages, I will never lose my trust in the company and I hope they exceed their business and gain even more success and popularity.Best wishes,Shahid Latif and familyPretty L. ★★★★★ Phil helped me renew my mortgage. He was great at keeping me updated with any rate changes and secured a lower rate than at the time my mortgage went through. Thank you Ascot for your supportNikki E. ★★★★★ Huge thanks to Richard Johnson for sorting out all of my insurance policies! I had accumulated a variety of life cover and various other policies over the years that all needed a good review and refresh. Richard was extremely patient and helped me to remove the duplication and choose the best cover to suit our current needs. I have used Ascot Mortgages for over 12 years and have met several members of the team, always finding the right help and support to work through what can be a complicated and stressful time. Thanks again, Richard!Aamir R. ★★★★★ As first time buyers we had very little understanding of how to go about applying for a mortgage. Phil was so helpful in cutting through all of the formalities and helping us to decide which mortgage would be best for us also ensured we collated all the details needed and kept us up to date on progress. The process of finding the right house was very stressful but the process of choosing and applying for the mortgage and life cover has been so straight forward that, at times, we were worried it was all a bit too smooth! Thank you for guiding us through this so professionally and with real understanding and personality.Andrew T. ★★★★★ Working with Richard at Ascot has been a great experience. He listened to us and was very professional throughout. This was our first experience with Richard but we've been using Ascot now for 6-7 years. Thank you all at AscotAngie B. ★★★★★ Always give a great service and find you a mortgage in a timely fashion.Alison is awesomeAndrew M. ★★★★★ We have used Ascot Mortgages for over 5 years now and have had excellent service throughout, primarily with Alison and Kevin. Our latest dealings have been with Richard Johnson who although new to us (and to Ascot I believe) has once again provided the 5 star level of service we have come to expect. His product knowledge is excellent offering a range of options supported with consistent communication and updates, always available on the phone or on email every step of the way.Ali H ★★★★★ Excellent service, a big thanks to Natalia Barry for her excellent support with my buy to let mortgage application, Natalia was professional, transparent, and kept me informed during all the process, and thanks to Jason jones for his assistance and support.david R. ★★★★★ I have dealt with Ascot for many years now and will always go back, recently had all my insurances re done by Richard Johnston at the firm, excellent service, communication and swift actions by Richard. Great deals on all three insurances and would recommend anybody to go to Richard for help. Thanks Richard 👍Eve Alexandra C. ★★★★★ We used Ascot Mortgages to purchase a home as first time buyers, Ellie assisted us with this and went above and beyond to ensure everything went smoothly, all questions were answered, and any queries were solved.As first time buyers, myself and my partner were quite nervous and clueless as to what to expect when getting a mortgage and what not, and Ellie made this so simple and explained everything in a way that we thoroughly understood what was happening with our house buying journey, without it being pure jargon.I can't thank Ellie enough, she truly has been a star during the whole experience and is an asset to Ascot Mortgages.She is someone who I would definitely recommend to friends and family if the opportunity arises, and has made this whole experience a very stress free and exciting one!Thank you for everything Ellie!Emma W. ★★★★★ Alison helped me to get the right mortgage for my current situation and was very supportivehelen L. ★★★★★ Phil Greenwood dealt with my recent remortgage, he made sure I had the best product to fit our HMO criteria. Then chased solicitors for me and made sure I completed around the date I wanted to avoid my ridiculous rate I was about to be switched to. Thanks Phil, great job! Ready for my next mortgage now so I will be coming back 🙂Mark C ★★★★★ Excellent service from an excellent representative. Very professional and helpful company. Thank you for all your helpDamian L. ★★★★★ I recently purchased a buy-to-let from Auction and Ascot Mortgages, in tandem with Ascot Bridging Finance, supported me through the whole process. Once the property purchase via a bridging loan was complete, Ascot Mortgages worked out the best options for me, despite the Banks rising interest rates and spiralling UK inflation and managed to secure me a competitive mortgage rate for that property. I wouldn't hesitate in going back to Ascot Mortgages in the future and look forward to working with them again in the near future. Thank you for everything you've doneJuliet B. ★★★★★ Thank you to Alison for helping us and sorting out our mortgage. Swift, reliable and very helpful. Very much appreciated. God bless you abundantly 👍👌🤝gareth P. ★★★★★ Been with Alison and team for more than 25 years. Needless to say, very happy...Jo T. ★★★★★ We have been using Ascot Mortgages for the last few years and they have done 11 buy to let products for us.We have found Alison, Phil, Jason, Jardelle and the team to be excellent at finding the best product for us and to work at pace when we are buying from auction and have a deadline to meet.Communication is very good and nothing is too much troubleBen H. ★★★★★ I can't recommend Ascot Mortgages highly enough.We have used them for all of our Mortgages . They are professional and friendly and have walked us through all our options, they always have the time to talk to you and go the extra mile to get you the best deal. It wont be long till I'm calling on their services again, I wouldn't go anywhere else.If you want a mortgage, there's only one place to go!Dog J. ★★★★★ Ascot went the extra mile to help me acquire a mortgage. With the help of Jason and Ellie I was able to get a competitive rate after 3 other firms had told me they couldn't help me. Great levels of communication throughout, I would highly recommend!Ursula B. ★★★★★ Alison was very friendly and professional in securing the right bridging for us and at a very competative price. This ensured that we were able to place an immediate offer and not miss out on our forever home. Later her help and support in finally getting our completion over the line was nothing short of a miracle. I would strongly recommend both Alison and the team at Ascot Mortgages.primrose C. ★★★★★ ALISON IS BY FAR THE BEST IN THE GAME. ALL WE CAN SAY IS THANK YOU SO MUCH. They are passionate on customer service, even in my frustrated time Alison, Jadelle, Ellie I could name them all. May the good LORD BLESS YOU.js_loader

First Time Buyer Mortgages

Buying a home is an exciting journey, and securing the right mortgage can make the path smoother. For first-time buyers, this process can be overwhelming, but there are numerous first-time buyer mortgage deals designed to ease the financial burden. Whether it’s navigating interest rates, understanding various mortgage schemes, or determining your ability to borrow, this comprehensive guide offers insights to support you at every step of your home buying journey.

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

09.11.2023

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

09.11.2023

Who Qualifies as a First-Time Buyer?

Anyone who is buying their first property can apply for a first-time buyer mortgage. Lenders will typically examine your credit history, financial stability, and overall affordability to assess if you qualify for their products.

Check Your Credit Score

Before applying for a first-time buyer mortgage, it’s essential to review your credit score to ensure there are no discrepancies. A strong credit rating will influence the interest rate and mortgage deal you’re offered.

The way you have already managed your bills and debts if any is measurable and transferred into a points system. Depending on what CRA you deal with, the credit score paradigm will differ.

  • To succeed with Experian in the UK, you have to gain at least 721 points for a fair outcome and 881 and 961 points for good and excellent results consequently.
  • TransUnion’s system of evaluation differs — at least 566, 604, and 628 points for the same productivity.
  • Equifax estimates people as owners of fair credit scores with at least 380 points. For good and excellent marks, you have to be graded with not less than 420 and 466 points for the appropriate category.

To improve your credit score before applying for a first-time buyer mortgage, it is reasonable to pay bills on a timely basis, opt for open banking data for its expected dominance in terms of executive time and strategic plans efficacy, and end your current credit to avoid multiple applications, to mention a few. This will help prove that you are enabled to effectively manage your finances.

Mortgage Repayment Calculator

Save up a Cash Deposit

The majority of lenders in the market demand at least a 10% down payment to get started. To cope with this one of the largest obstacles for first-time buyers, saving up for a deposit is a well-known strategy. Here are some recommendations to climb this housing ladder in a more productive manner:

  • Work with savings accounts and rates in more detail. For instance, you can register a Lifetime ISA account to make contributions during a tax year (up to £4,000) and obtain a governmental incentive of up to £1,000 annually (a 25% bonus).
  • Track the industry for new offers and first-time buyer mortgage deals. Given increased interest rates, modern brokers provide more special deals and agreement conditions to entice customers. Aside from non-profit offers, keep an eye on the schemes backed up by the government.

Talk to a Mortgage Broker to Get an Estimate

A mortgage broker can help you understand your options and find the first-time buyer mortgage rate that suits your needs. They can compare various lenders and offers, allowing you to make an informed decision.

First-Time Buyer’s Deposit

The First-time buyer’s deposit is typically at least 5%-10% of the property value. However, higher deposits often lead to better mortgage deals and interest rates.

Which Type of First-Time Buyer Mortgage is Best for Me?

The best first-time buyer mortgage depends on your individual financial situation, the property value, and your long-term plans. Speaking to a financial advisor can help tailor the right product for you.

How Much Can I Borrow as a First-Time Buyer?

The amount you can borrow as a first-time buyer depends on your income, outgoings, credit rating, and the lender’s criteria. Generally, lenders might offer loans up to 4-5 times your annual salary.

Alison Gibson

Ascot Mortgage Expert

Embarking on Your First Mortgage Journey

What Our Expert Says...

Stepping onto the property ladder with a first-time mortgage is a monumental milestone. While it’s an exciting chapter, it can also be daunting with the many choices and considerations. As a novice, understanding your borrowing capacity, the range of available products, and the intricacies of interest rates is vital. It’s crucial to budget not just for the property but also for associated fees and potential rate changes in the future. My advice? Dive deep into research, take an holistic view of your finances, and never shy away from seeking professional guidance. A solid foundation now ensures a smoother journey ahead.

Types of First-Time Buyer Mortgages

The title of the best first-time buyer mortgage doesn’t belong to the one and only solution in the UK. The reason for that is clear — your personal conditions and plans predetermine how successful this or that chosen plan can become in your particular case. That’s why getting acquainted with the entire palette of first time buyer mortgages will pay it off.

Fixed-Rate Mortgages

These offer a fixed interest rate for a set period, providing stability in monthly repayments.

Tracker Mortgages

Tracker mortgages follow the Bank of England base rate, offering potential savings if the rate drops.

Discounted Variable-Rate Mortgages

These mortgages offer a discount on the lender’s standard variable rate, which can reduce monthly payments initially.

Standard Variable Rate Mortgages

After your current deal expires, your plan typically switches to this alternative. It is a highly-fluctuating deal in the UK, which provides more freedom to lenders to operate interest rates as they want. If the base rate increases, they can decide to either leave their SVR the same or more likely enhance their offers by 1% or more per cent.

Offset Mortgages

Offset mortgages link your savings account to your mortgage, reducing interest costs.

Compare your options as a first-time mortgage buyer

It’s crucial to compare various first-time buyer mortgage deals, interest rates, and lenders to find the perfect fit for your needs. Utilizing a mortgage calculator, speaking with Ascot Mortgages broker, and seeking professional financial advice can all help in making an informed decision. Remember, the right mortgage for you will align with your financial stability, house value, and long-term goals.

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FAQ

A guarantor mortgage is a type of mortgage that involves a third party, usually a family member or close relative, guaranteeing the mortgage repayments on behalf of the borrower. This arrangement is more commonly now known as joint borrower sole proprietor as the guarantor essentially is included as part of the mortgage application but not included on the title deeds to the property.

Shared ownership is a form of home ownership that enables buyers to purchase a share in the property and pay rent on the remaining amount. The buyer usually pays an initial deposit, which is between 5% to 10% of the price of the share being purchased, and then pays a reduced rent on the remaining portion owned by a housing association or other organisation.

A joint mortgage is a type of mortgage that two or more individuals take out together to purchase a property. It allows multiple borrowers to combine their incomes and share the responsibility of repaying the mortgage loan.

The loan-to-value ratio (LTV) is a financial term that represents the ratio between the loan amount and the appraised value or purchase price of an asset, typically a property. It is commonly used by lenders to assess the risk associated with a loan.

Repayment and interest-only mortgages are two different types of mortgage repayment structures. Here’s an explanation of each:

  • Repayment Mortgage: A repayment mortgage, also known as a capital and interest mortgage, is a type of mortgage where your monthly payments cover both the interest on the loan and the repayment of the principal amount borrowed. Over the term of the mortgage, typically 25 to 30 years, your monthly payments gradually reduce the outstanding balance. At the end of the term, assuming all payments have been made, the mortgage is fully repaid, and you own the property outright.
  • Interest-Only Mortgage: An interest-only mortgage is a type of mortgage where your monthly payments only cover the interest charges on the loan. Unlike a repayment mortgage, you do not make any principal repayments during the term of the mortgage. As a result, the outstanding balance of the loan remains the same throughout the mortgage term. Therefore your monthly payments are less. However, lenders may restrict the maximum loan to value on an interest only basis – generally between 50% to 75%.

With an interest-only mortgage, you are required to have a separate plan or investment vehicle in place to repay the principal amount at the end of the mortgage term for residential mortgages. This could involve savings, investments, or other arrangements that aim to accumulate sufficient funds to pay off the loan. It’s crucial to ensure that the repayment plan is robust and will be able to cover the loan amount. For Buy to Let mortgages lenders will typically accept sale of the security property as the investment vehicle.

Consider a longer-term mortgage if:

  • You prefer lower monthly payments to manage your budget.
  • Affordability is a priority, allowing you to allocate funds to other financial goals.
  • You plan to sell or refinance in the near future.

 

Opt for a shorter-term mortgage if:

  • Minimizing total interest payments is important.
  • Building equity quickly is a priority.
  • You plan to stay in the property for an extended period.
  • Ultimately, the decision should align with your financial circumstances and goals.

Consulting a mortgage advisor can provide personalized guidance.

Yes, it is possible to get a buy-to-let mortgage as a first-time buyer, but it can be more challenging. As a first-time buyer lenders may view you as a higher risk and will also base their lending decision on both rental income and your own personal affordability. However, if you have a good credit score, a stable income, and a solid business plan for your rental property, you may be able to secure a buy-to-let mortgage. It’s important to shop around and compare different lenders to find the best deal for your individual circumstances which is why contacting a mortgage broker for the right advice is a good solution.

Yes, you can get a first-time buyer mortgage if you’re self-employed but most lenders would require a 2 year minimum trading history. However, additional requirements may apply. You’ll need to provide evidence of income, such as business accounts and tax returns. Lenders may request an accountant’s certificate and consider your trading history. A larger deposit may be required. Specialist lenders may cater specifically to self-employed borrowers. It’s best to consult with a mortgage advisor or lenders directly for personalized guidance.

Apply for a first-time buyer mortgage when you have prepared your finances, saved for a deposit, and are ready to commit to homeownership. Consider obtaining a Decision in Principle before house hunting. Consult with a mortgage advisor for personalized guidance.

When budgeting for homeownership, consider the following costs: –

  • Deposit: Set aside funds for the down payment on the property.
  • Stamp Duty or LBTT: Pay the property tax based on the purchase price.
  • Solicitor or Conveyancer Fees: Budget for legal services.
  • Valuation and Survey Costs: Account for property valuation and survey expenses.
  • Mortgage Fees: Consider arrangement or booking fees associated with the mortgage.
  • Home Insurance: Plan for building and contents insurance.
  • Moving Costs: Budget for expenses related to moving your belongings.
  • Ongoing Costs: Include mortgage repayments, council tax, utilities, maintenance, and service charges.

Ensure you research and estimate these costs to create an accurate budget. Our advisors are always available to assist you in finding the most suitable deal for your unique situation.

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In search of your first home? Look no further than Ascot Mortgages, your premier destination for first-time buyers. Our specialists are experts in guiding novices through the property market, providing access to an extensive array of mortgage options tailored to individual needs. Get in touch with Ascot Mortgages today to discuss your first-time buyer requirements, and set forth on the thrilling adventure towards homeownership. 

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