First Time Buyer Mortgages

Mortgage Brokers in Bristol and Weston-super-Mare

Helping Hand

We are experts in helping first-time buyers and make sure you know everything you need to about buying your first property.

FREE mortgage consultation

To answer any questions you may have with no obligation.

FREE agreement in principle

We can provide an agreement in principle for free, so you have confidence to make an offer on a property.

Comprehensive

We offer a comprehensive range of mortgage products from the market.

5 Star Outstanding Service

See out reviews over the last 5 years (5 Stars)

Local Knowledge

We have knowledge of the Bristol market if you are unsure of where to buy and the current prices that could be affordable to you.

In today’s economic climate, it is especially difficult for first time buyers to get onto the property ladder. The initial deposit is the primary hurdle for many people trying to obtain a mortgage as a first-time buyer, as most lenders look for a minimum of 10% of the property value as a deposit. Some lenders may ask for even higher, depending on the buyer’s income and credit history.

The amount of deposit required does depend on the lender, but the higher deposit, the better deal you will get as a first-time buyer in terms of mortgage interest rates. When you pay a higher deposit, you are a lower risk to the lender, as the monthly repayments are lower and thus easier to pay each month. Most lenders require a deposit of at least 10% of the property price.

The property you can afford will depend on the size of your deposit, as it will impact on the loan-to-value (LTV) rate. This is the amount the bank is willing to loan to you, compared to the value of the property. The higher your deposit, the lower your LTV rate.

As a mortgage is secured on your home, please note that your home may be repossessed if you do not keep up repayments on your mortgage.

Other costs when buying a home

Stamp duty land tax (SDLT) is a tax that is paid by the buyer when purchasing a property over a certain value. First time buyers in England do not pay any stamp duty on a property up to the value of £300,000. The stamp duty tax rate over this amount is 5%, up to the value of £500,000. For any property over £500,000, standard stamp duty rates will be applied.

You may also have to get property surveys when buying a home. This involves a qualified surveyor inspecting the property you plan to buy and providing you with a report on structural and interior repairs. The cost of the survey depends on your location and how detailed a survey you require.

Conveyancing fees and mortgage broker fees may also be applicable when buying your home.

Information/rates for the Stamp Duty calculator are taken from the gov.uk website. Updated on: 8th November 2022

Property Ladder

First time buyer schemes

Lifetime ISA

Lifetime ISAs are a type of bank account. You can deposit a maximum of £4000 into a Lifetime ISA every year, and the government will top it up with a 25% (£1000) bonus. The money can be used to purchase a home up to the value of £450,000. There is a financial penalty to pay if you remove the money from the account for reasons other than buying a home. If buying with another person, you can both use your separate ISA accounts to double the bonus.

Other options

Shared ownership

A shared ownership mortgage lets you buy a percentage of a property and pay rent on the rest. You only pay a deposit on the percentage of the property you buy, so the deposit you need is much smaller than a traditional residential mortgage.  You can purchase more shares in the property later on.

Guarantor mortgage

With a guarantor mortgage, a family member asks as a guarantor, agreeing to be responsible if the buyer defaults on their mortgage payments. With guarantor mortgages you can borrow up to 100% of the property value, making it a viable choice for first-time buyers with small deposits.

How we can help

Buying your own home can be daunting, especially if you are a first-time buyer with no experience of the process. However, we are here to guide you through every step of the way.

Apps like Zoopla and Rightmove are useful search tools when looking for your perfect home. Or, if you’re looking in a particular area, visit local estate agents with your criteria and they will contact you when a property becomes available. This can be highly useful as there is a lot of competition in the housing market, so it helps to be at the front of the queue.

Before starting your property search, have a think about some of the following questions:

  • What area would you like to live in?
  • What are they features you’d like in a property?
  • How much deposit do you have available?

3 easy steps to your new mortgage

  1. Fill out our online form, request a call back or call us
  2. One of our advisers contacts you to learn more about your situation
  3. Relax while we find you the right mortgage
Apply Online 01179 146596

no stress!