MDJ Mortgages, Mortgage First Time Buyer Specialist

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Mortgage First Time Buyer Frequently Asked Questions

A first-time buyer mortgage is a home loan specifically designed for individuals who are purchasing their first property. These mortgages often have special features, such as lower deposit requirements or government schemes to assist first-time buyers.

Typically, first-time buyers are required to provide a deposit of at least 5-20% of the property’s value however there are now some schemes for no deposit mortgages.  The specific amount will depend on the lender and the mortgage product you choose. A larger deposit can help you secure more favorable interest rates and mortgage deals.

The UK government offers various schemes to assist first-time buyers, including:

  • Help to Buy Equity Loan: This scheme ended for new application in England and Wales on 31st October 2022. 
  • Shared Ownership: This scheme allows you to purchase a share (usually 25-75%) of a property and pay rent on the remaining portion.
  • Help to Buy ISA/Lifetime ISA: These savings accounts offer government bonuses on your savings towards a first home.
  • First Homes: This scheme offers newly built homes at a discount of at least 30% to local first-time buyers.

To choose the right mortgage, consider factors such as interest rates, repayment terms, fees, and flexibility. It’s recommended to seek advice from a mortgage broker who can assess your financial situation and guide you through the available options.

To improve your chances of getting a mortgage, you can:

  • Maintain a good credit score by paying bills on time and managing debts responsibly.
  • Save for a larger deposit, as it can make you more attractive to lenders.
  • Minimize your outstanding debts and avoid taking on new credit before applying for a mortgage.
  • Consider using a mortgage broker who can help you find lenders and products suitable for your circumstances.

The mortgage application process involves several steps, including:

  • Gathering your financial information and documents (e.g., income, employment, bank statements).
  • Obtaining an agreement in principle (AIP) from a lender, which confirms how much they may be willing to lend you.
  • Finding a suitable property and making an offer.
  • Completing the full mortgage application, including providing all required documentation.
  • The lender conducting a valuation survey on the property.
  • Your solicitor or conveyancer handling the legal aspects of the purchase.
  • Exchanging contracts and completing the purchase.

These steps can vary slightly depending on the lender and your individual circumstances.

Remember, it’s always advisable to seek professional advice from mortgage advisors or brokers who can provide personalized guidance based on your situation.

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