Mortgages for first time buyers
Buying your first home is one of the biggest steps you’ll take in life. Whilst it’s incredibly exciting, it can also be pretty scary. Taking your first step onto the property ladder can feel quite overwhelming and with all the banking jargon and endless mortgage options available, how do you decide what’s best for you?
Luckily, with the right help, applying for your first mortgage can be pretty straightforward. And there are a range of deals available for first-time buyers.
Whether you’ve got a modest deposit or you’ve been squirreling away for a while, we can find you the best mortgage deals on the market and guide you through the entire process; from your first credit check, to the moment you’re handed the keys to your new home.
How much can I borrow?
How much will it cost?
Our online mortgage calculators have been designed to help you with the most common mortgage questions such as ‘how much can I borrow?’ and ‘how much will it cost?’
To get a more accurate idea we recommend that you speak to one of our expert mortgage advisers.
A fixed rate mortgage charges a set rate of interest for a predetermined period. Once this period is over, the interest rate usually revers to the lender’s Standard Variable Rate (SVR).
Trackers are a type of variable rate mortgage which see interest rates rising and falling based on the Bank of England’s base rate. However, unlike traditional variable rate mortgages, a tracker mortgage doesn’t have to match the Bank of England’s rate exactly. Instead, the rate the borrower is charged is likely to be a little above the base rate.
An offset mortgage links the borrower’s savings to their mortgage balance. By choosing an offset mortgage, homeowners can reduce the amount of interest charged and potentially pay off the mortgage sooner.
A cashback mortgage pays the borrower an upfront lump sum. This can enable them to pay for a costly expense such as home furnishings, a car or university tuition fees. The rate paid tends to be based on the bank's Standard Variable Rate (SVR).
A discount rate mortgage offers borrowers a reduction on the lender’s Standard Variable Rate (SVR) for a set period of time. The rate can fluctuate and so although the borrower will repay less than the SVR, their repayments could rise or fall.
A variable rate mortgage sees the interest owed rise or fall depending on the base rates set by the bank. When the base rate is low, borrowers may benefit from extremely low mortgage repayments. However, if the base rate increases, so too will the amount borrowers are expected to pay in interest.
When a homeowner has an interest only mortgage, they won’t pay traditional mortgage payments each month. Instead, they’ll only repay the interest that is due. At the end of the mortgage term, the homeowner will be expected to pay the property’s value in full.
A capped rate mortgage offers similar security to a fixed rate mortgage. The rate payable will be capped for the duration of an agreed upon period of time. During this time, the rate may rise or fall in line with market fluctuations, but it will never exceed the capped rate.
As a result, a capped rate mortgage enables borrowers to benefit from falling rates without placing strain on their budget as a result of unaffordable increases.
The mortgage process
We make the mortgage process for first time buyers much simpler. We know the best mortgage products on the market for first-time buyers.
We sort and filter the best deals based on your criteria to find the right lender and product for you.
Choosing your property
You may have a certain set of criteria such as a good school nearby, local transport links, and shops, restaurants and amenities close by.
You will need to provide a deposit and it’s worth taking into consideration that better mortgage deals can be obtained with larger deposits. Although the deposit does not need to be paid until the exchange of contracts, you will need to prove that you have these funds at the outset, to show the lender you are not borrowing the money from elsewhere and therefore increasing your monthly outgoings.
It is not just the deposit that you need to take into account; you should bear in mind the other costs associated with buying a property. These include valuation costs, solicitor’s fees and potentially stamp duty.
Deposits: you need at least 5% of the purchase price. For example, for a £250,000 property you would need £12,500 for a 5% deposit.
Choosing a mortgage
Taking you through the whole process from start to finish, TaylorMade will manage your entire application. Our expert advisers do extensive research to find you the very best mortgage deal on the market. We’ll choose only the very best deals and present you with a few different options to consider.
Give us a call to get started 0870 890 9877
Once you’ve chosen your mortgage, you make an initial application with the lender who will then invite you for an interview. This is when the process of credit checks and the review of your documentation, such as bank statements and wage slips, will begin. If the lender is happy with your credit score it’s time to survey your property.
Making an offer
When you’ve chosen your property and have been accepted for a mortgage, you can then make a formal offer to the vendor with the price you are willing to pay (usually, this is done via an estate agent). If the vendor accepts your offer you can then move onto the next stage.
Average time: 2-4 weeks once all the required information has been submitted.
Handling the paperwork
Once your offer has been accepted, it’s time to see your TaylorMade adviser to talk specifically about the nitty gritty, such as mortgage repayment options and the terms and conditions of your loan.
This can be a pretty detailed process with lots of information going back and forth but at TaylorMade, we aim to make the whole experience as straightforward and easy to understand as possible. We explain everything without resorting to confusing industry jargon so that by the time you’ve signed all your paperwork, you’re stress free and excited to step into your first home.
Talk to us
If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.
Where you have a complaint or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details: http://financial-ombudsman.org.uk
Your home may be repossessed if you do not keep up repayments on your mortgage.
For mortgages we can be paid by commission, or a fee of usually 1% of the loan amount.
TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority.
The Financial Conduct Authority does not regulate Will Writing and some aspects of estate planning. Buy-to-Let Mortgages and Secured Loans.
The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.