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First Time Buyers
Take the next big step towards owning your first home. We’re here to guide you every step of the way and make it a reality.
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First Time Buyer Mortgages
Buying your first home can feel overwhelming if you’re unsure where to begin.
With over a decade of experience in the financial services industry, we’ve helped clients across the UK secure the right mortgage and insurance solutions to fit their individual needs.
Mortgage options for first-time buyers.
Selecting the right mortgage is an important first step, but there’s no need to feel overwhelmed! Here’s a simple breakdown of the most common choices available to first-time buyers:
Fixed Rate Mortgages
A Fixed Rate Mortgage for buy-to-let properties ensures that your monthly payments remain consistent throughout the term of your mortgage. You lock in an interest rate for a specific period, typically ranging from 2 to 10 years. This means that, regardless of market changes or shifts in the Bank of England’s rates, your monthly mortgage payments will not change.
If you value stability and predictability, this type of mortgage is ideal for you. The only thing to be mindful of is that once the fixed-rate period expires, the mortgage will usually switch to the lender’s Standard Variable Rate (SVR), which could be higher. However, you can easily remortgage to a new fixed rate once your initial term ends.
Standard Variable Rate (SVR) Mortgages
Standard Variable Rate (SVR) Mortgages have interest rates that vary based on the Bank of England’s base rate and the lender’s own costs.
As a result, your monthly payments may increase or decrease. Although this provides less predictability than a fixed-rate mortgage, it also means you could pay less if interest rates go down. However, there’s also the risk that rates could rise, making your mortgage payments more expensive.
Tracker Mortgages
A Tracker Mortgage is another type of variable buy-to-let mortgage. The interest rate typically follows the base rate, with an additional percentage added on. For instance, if the base rate is 1% and the tracker rate is base rate plus 1.5%, your rate would be 2.5%.
Tracker mortgages can be beneficial when interest rates are low or falling. However, they can also be risky if rates increase, as your payments would rise accordingly.
Discounted variable rate mortgages
Discounted variable rate mortgages are linked to the lender’s Standard Variable Rate (SVR). They offer a reduced interest rate for a set period, usually between 2 to 5 years.
With some of the lowest interest rates and smallest monthly payments, these mortgages can be especially appealing to first-time buyers. However, it’s important to keep in mind that both the interest rates and monthly repayments can change at any time.
Specialist Mortgages
If you’re self-employed, thinking about using a family member as a guarantor, or dealing with other unique situations, a specialist mortgage might be the right option for you.
These mortgages are specifically tailored to help first-time buyers navigate common challenges to homeownership. Contact one of our advisors for more details.
Feel free to ask us anything!
At Alexanders FA , we provide expert brokerage services to guide you through this complex process. With access to a wide range of mortgage options, we ensure you secure the best possible deal.
We pride ourselves on delivering a personal, honest, and reliable service, helping you feel confident and informed with every decision you make.
How does Alexanders FA work?
At Alexanders FA, we simplify the home-buying process with expert guidance, ensuring you receive professional support every step of the way.
As an award-winning broker, we offer free mortgage and protection advice tailored to both first-time buyers and seasoned investors. Trust Alexanders FA for a smooth, stress-free home-buying experience.
1
Free Initial Consultation
We’ll review your current circumstances and property goals, evaluating your borrowing capacity to help identify the most suitable mortgage lenders.
2
Agreement in Principle (AIP)
An AIP provides an estimate of your borrowing power. With this in hand, you can confidently explore properties within your budget and make informed offers.
3
Personalised Mortgage Guidance
After your offer is accepted, we recommend the most suitable lenders and mortgage products. We manage every detail of your mortgage application to ensure a seamless experience.
FAQ: First Time Buyers
The answers to your questions.
How much can I borrow?
In the UK, you can typically borrow between 4 and 4.5 times your annual income for a mortgage, though this can vary depending on the lender and your credit score. Use our mortgage calculator to get an estimate of how much you could borrow and what you could afford to repay.
Should I buy a new-build or older property?
The choice between a new build and an older property depends on your personal preferences and priorities. New builds offer modern designs, energy efficiency, and lower maintenance costs, though they may come at a higher price. Older properties often have more character, potentially larger spaces, and the opportunity to add value through renovations. Ultimately, the decision should reflect what you’re looking for in a home!
Do I have to pay stamp duty?
As a first-time buyer in the UK, you won’t need to pay stamp duty if the property you’re buying costs less than £300,000. For properties priced up to £500,000, you’ll pay no stamp duty on the first £300,000 and 5% on the portion above that.
Why should I use a mortgage advisor?
Buying your first home can raise many questions and feel overwhelming. A mortgage advisor can provide support throughout the entire process. At Alexanders FA, we offer a personalised approach to help you find the perfect mortgage, providing expert guidance on a variety of mortgage options, insurance protections, and different lenders.
What will my monthly payment be?
Your monthly mortgage payment depends on factors such as the loan amount, interest rate, and the term of your mortgage. Use our monthly payment calculator here to estimate how much you could pay.
What happens on completion day as a first-time buyer?
As a first-time buyer in the UK, you’ll typically need a deposit ranging from 5% to 20% of the property’s purchase price. The exact amount depends on the lender and the specific mortgage options available to you.
What deposit is required for first-time buyers?
As a first-time buyer in the UK, you’ll typically need a deposit ranging from 5% to 20% of the property’s purchase price. The exact amount depends on the lender and the specific mortgage options available to you.
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