First Time Buyer Mortgage
Let us help you get your first mortgage pain free, have a read of the information and key facts below to understand how much you can borrow, the right type of mortgage for you and the amount of deposit you may need.
What is a First Time Buyer Mortgage?
A First Time Buyer Mortgage is a home loan designed specifically for people purchasing their first property. It helps buyers get onto the property ladder with tailored lending criteria, lower deposit options, and government-backed schemes in some cases, making homeownership more accessible for new buyers.
Who is considered a first timer buyer ?
A first time buyer is someone who has never owned, inherited, or been given residential property or land, either in the UK or abroad, regardless of its value.
- Purchasing Property with an Existing/Previous Homeowner
- Inherited a property, even if you never lived there and it has since been sold.
- Purchase a part share of a property from someone else & now you both jointly own the property.
- Someone who already owns a home, like a parent or guardian, is buying a property for you.
How Much Can You Borrow as a First Time Buyer?
To establish your budget, first calculate your available deposit and estimate how much you can borrow. You can use a mortgage calculator to test different scenarios, including property price, interest rate, loan term, and deposit size, to understand your potential monthly repayments as a first-time buyer in the UK.
What Is a Mortgage Agreement in Principle for First Time Buyers?
A mortgage agreement in principle is a preliminary indication of how much you may be able to borrow before applying for a full mortgage. It involves a soft credit check that does not impact your credit score and is usually valid for 60 to 90 days, giving you a clear budget when searching for your first home.
What Happens When You Make a Formal Mortgage Application?
Once your offer on a property is accepted, you submit a full mortgage application. The lender carries out detailed affordability checks, including income, expenses, credit history, and a hard credit search. A decision is typically made within two to six weeks, determining whether your mortgage is approved and on what terms.
How Much Can I Borrow
Your Estimated Borrowing Amount
Government support for First Time Buyers ?
First time buyers have a several support options from the UK Government availble that they may be eligble for.
Lifetime ISA
Available for those aged 18-40, the government adds a 25% boost to savings (up to £1,000 per year) until 50. Limits on property value apply.
Right to Buy
Allows tenants renting from their local council to buy their home at a discounted price.
First Homes Scheme
Offers new-build homes to first-time buyers at 30-50% less than market value.
Shared Ownership
Enables you to co-own a property with a landlord, typically a council or housing association.
Mortgage Guarantee Scheme
Provides the opportunity to get a mortgage with a 5% deposit. Available until June 30, 2025
What Are the Different Types of Mortgages?
Understanding the different types of mortgages is key to choosing the right home loan—whether you’re a first-time buyer, remortgaging, or investing. By exploring each mortgage option, you can select the most suitable financing based on your income, property goals, and risk profile.
Fixed-Rate Mortgages
Fixed-rate mortgage
Fixed-rate mortgage keeps the interest rate fixed for 2–5 years, giving first-time buyers stable monthly payments and easier budgeting. After this, you usually move to a variable rate or choose a new deal.
Standard Variable Rate Mortgages (SVR)
SVR interest rate is set by the lender, which can fluctuate. This means your monthly repayments can change, making it harder to predict your future payments.
Tracker Mortgages

Tracker mortgages follow the Bank of England base rate, with interest set slightly above it. Payments may rise or fall depending on rate changes, so borrowers should be prepared for potential increases.
Discount Rate Mortgages
These mortgages offer a discount on the lender’s SVR. For example, if the SVR is 5% and the discount is 1%, your interest rate will be 4%. Although the discount stays the same, the SVR can change, which could affect your payments.
Capped Mortgages
Capped mortgages have a variable interest rate linked to the lender’s SVR, but there is a maximum limit (cap) on how high your payments can go, regardless of interest rate rises. These mortgages may not be as widely available.
Offset Mortgages
Offset mortgages link your savings account to your mortgage. The balance in your savings is used to reduce the interest you pay on your mortgage, potentially saving you money in the long term.
Why Choose Mortgage-Tek Mortgage Services
Get your right and on-point advice by our OMA-approved brokers. Working with Mortgage-Tek is simple and straightforward, here are the benefits we offer to our worthy clients.Â
FCA & CeMAP Certified
FCA-authorised and CeMAP-qualified, we deliver expert, transparent mortgage advice designed to give you confidence at every step.
Niche Market Experts
Whether you’re self-employed, dealing with credit challenges, or buying a unique property, our brokers have the expertise to guide you.
Dedicated to Fairness
We enforce a fair fee policy, ensuring brokers follow clear pricing and never charge clients more than the agreed capped amount.
Guided by Expertise
At Mortgage-Tek, we’re trained professionals with extensive financial expertise, helping clients make informed decisions.
Save Valuable Time
Managing finances can be complex. Our expert advisers handle the research and paperwork, helping clients save time and effort.
Custom Mortgage Plans
Our advisers carefully evaluate your finances and goals to provide personalised mortgage solutions at their best.
Frequently Asked Question
What is a joint mortgage?
A joint mortgage is when two or more people apply for a mortgage together. This could be with a partner, family member, or friend. All applicants are legally responsible for the mortgage, and their combined incomes are considered when calculating how much you can borrow.
Learn more from our partner: https://contractormortgagesolutions.co.uk/
What is a loan to value ratio (LTV)?
Loan to value (LTV) is the percentage of the property’s value that you’re borrowing through your mortgage. For example, if you’re buying a £200,000 home with a £20,000 deposit, your LTV is 90%. A lower LTV often means better mortgage rates, as it’s seen as lower risk to lenders
Should I buy a freehold or leasehold for my first home?
With a freehold, you own the property and the land it’s built on. With a leasehold, you own the property for a set period (often 99–999 years), but not the land it’s on. Leaseholds are common with flats and can involve ground rent and service charges. Freehold is usually preferred for houses, as you have full ownership and fewer ongoing fees.
Do I need a solicitor when buying my first home?
Yes, you’ll need a solicitor or conveyancer to handle the legal side of the property purchase, including searches, contracts, and transferring ownership.
Can First-Time Buyers Get Contractor Mortgages?
Yes, first-time buyers who are contractors can apply for Contractor Mortgages. Lenders typically require a minimum contracting history of 12 to 24 months and may have specific criteria for first-time buyers.
What is the Help to Buy: Equity Loan and is it still available?
The Help to Buy: Equity Loan scheme in England ended in March 2023. However, alternative schemes such as First Homes and Shared Ownership are still available to support first-time buyers.
How Can I Improve My Chances of Approval?
To increase your chances of approval, consider the following:
- Maintain a stable contracting history.
- Manage your finances responsibly.
- Work with an experienced mortgage advisor.
- Ensure all required documents are accurate and up-to-date.
Can I buy a house with bad credit as a first-time buyer?
It’s possible, but your options may be limited. You might need a larger deposit and may face higher interest rates. Some lenders specialise in helping buyers with less-than-perfect credit.