First Time Buyer Mortgages

Should I Go Straight to My Bank?

Banks and building societies tend to be the first port of call for people looking for a mortgage. While it’s true that most high street banks do offer mortgages, there are many lenders out there, each with their own specific range of products — and your situation could be better suited to one you’ve never heard of. As a whole-of-market broker, we search across the full range on your behalf, rather than just the handful of names you’d think to try yourself.

Will I Be Able to Get a Mortgage?

Assuming you receive a regular income and have no missed payments or defaults against your name, you should be able to get a mortgage with one of a long list of lenders. That said, every application is assessed individually.

When reviewing your application, a lender will look at your employment history and whether you can afford the repayments. They’ll also consider personal details such as age and credit score, along with details of the property and mortgage itself. Every lender has different criteria and uses its own credit scoring system.

Because these systems vary so much, being turned down by one lender doesn’t mean the next will say no too — even the passage of time can improve your chances, as lenders regularly adjust their scoring depending on factors like how much money they have available to lend at any given time.

The Mortgage Store can help you work out which lenders are most likely to say yes to your specific situation. Get in touch for a free, no-obligation chat.

What Size Mortgage Can I Get?

This depends on market conditions, the lender you approach, and your own personal circumstances. As a general rule, you can typically borrow up to four times your annual salary — with a strong credit profile, that can stretch to around five times salary with some lenders.

Even “salary” isn’t always straightforward: some lenders will count benefits, dividends, investment income, or overseas earnings; others won’t. This is especially relevant if you’re self-employed or a contractor, where lenders can assess your income very differently from one to the next.

If you’re applying jointly with a partner, you can typically expect to borrow three to five times your combined salary.

One of our advisors will look at your income, expenditure, and credit report in detail to give you a realistic borrowing limit — book a free consultation to find out where you stand.

Will I Need a Deposit?

Pulling together a decent deposit is one of the hardest parts of buying a first home. Some lenders currently accept a 5% deposit, but it’s more common to need 10–15%. A smaller deposit also tends to come with stricter criteria and higher rates.

As a broker comparing products across the whole market — not just high street banks — we’re well placed to help you find the best deal available on your first mortgage, whatever deposit size you’re working with.

Strictly speaking, 100% mortgages no longer exist. However, some lenders can arrange a loan to cover your deposit, meaning you don’t need to find that initial lump sum yourself. If you can afford the repayments on both a loan and a mortgage but don’t have deposit savings, speak to one of our advisors to see if this could work for you.

How Much Will My Repayments Be?

Your monthly repayments depend on the total amount borrowed, your mortgage term, any fees, and the interest rate. A 25-year term used to be the default and remains popular, but borrowing over a longer or shorter period will increase or decrease your monthly cost accordingly.

As an across-the-market mortgage broker, we can help find the mortgage product that best fits your circumstances and budget. Speak to one of our specialist advisors today to find out what’s currently available as you start the hunt for your first home.