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Who has the best mortgage rates for first time buyers?

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    If you are reading this guide then the chance is you are a first-time buyer. The good news is that mortgage lenders are keen to attract first-time buyers and therefore you will find most banks and building societies have not only fantastic deals but also offer lots of great incentives.

    If you are about to get on the property ladder for the first time you will want to know which lender has the best mortgage rates for first time buyers?

    In this guide, we will help you through the maze of over a hundred Banks and Building societies and over 14,000 different mortgage deals so you know exactly how and where to get the very best deal for you.

    The Good News!

    Most Banks and Building Societies want you as a customer! You will be able to get yourself a great interest rate and what’s more, you can expect to get some money-saving incentives as well.

    We will look at the different savings and incentives you could possibly get however first let’s see how you can achieve the best mortgages available.

    How to get the lowest interest rate possible

    With over a hundred different banks and building societies and with over 14,000 different mortgages available in the UK, the question is where do you start?

    Some First Time Buyers will compare mortgages by using one of the many mortgage comparison websites. The only problem with these is that most do not compare mortgage rates from lots of different lenders available. Some of the comparison websites compare as little as a dozen different banks and building societies! This will not get you the best interest rates!

    The way to the lowest rate is by using a mortgage broker

    Around 70% of mortgages in the UK being arranged by mortgage brokers. There is a reason for this and the reason being they are whole of market. This means that mortgage brokers have the ability to search the whole market to get you the very best deal!

    How do I find a mortgage broker?

    There are two ways to find a mortgage broker. The first is to ask friends and family who they use and the second is to use Google. If you Google mortgage broker near me you will get a list of brokers that will be able to help.

    mortgage SERVICE

    So, you're looking to buy your first home?

    Will the mortgage broker charge me for their services?

    Even more good news is that you can get a mortgage broker that will no charge for their services. Google Fee Free Mortgage Broker and this will get a list of free mortgage brokers.

    What else can a mortgage broker do for you?

    A mortgage broker will firstly compare mortgages for you from the whole of the mortgage market. Once you are happy the mortgage broker will submit the mortgage application to the lender. A mortgage broker will have helped hundreds if not thousands of first-time buyers and will help and guide you through every step of buying your first property. They will also communicate with your solicitor and the estate agent that you are buying through.

    Make sure you get a good mortgage broker!

    Once you have a list of mortgage brokers spend ten minutes making sure you get one that shines above the rest. Look at their website and Facebook page. Look at their Facebook and Google reviews. Make sure they have lots of recent 5 star reviews and that they excel in looking after their clients.

    Looking for a mortgage broker near me that really cares? Look no further! Speak to YesCanDo.

    How do I know how much I will be able to borrow?

    The different Banks and Building Societies use affordability calculators to make a decision on how much you can borrow. The mortgage broker will need your last 3 months’ payslips and will also need to know of any loans or credit cards you have. The mortgage broker will have access to all the lender’s affordability calculators and therefore will be able to calculate what size mortgage you will be able to get.

    For sure the monthly repayments will be affordable as the main job of the different lender’s affordability calculators is that you will easily be able to afford the monthly payment. Read here for a bit more information on how much you can borrow.

    Will the mortgage lenders take my overtime into consideration?

    Yes, they will. Each Bank and Building society will have a different calculation on how much of your overtime or commission they will use. Some lenders will use all your overtime over the last 3 months. Some will use half of your overtime and some will use an average, Again, this is where your mortgage consultant, broker or advisor will come in hand. They will have access to the hundreds of lenders affordability calculators and will be able to advise which one will lend the most.

    How much deposit do I need?

    You will need a minimum deposit of 5%. However the more deposit you have the better the mortgage interest rates will be. The better the interest rate, the lower your monthly mortgage payment will be. Therefore get saving to get as big a deposit as possible.

    Should I get a fixed-rate mortgage or a tracker rate?

    The vast majority of first-time buyers choose a fixed rate. This makes total sense as this way you will know exactly how much your monthly repayments will be on your mortgage every month. Fixed-rate mortgages are available over 2 years, 5 years, and also 10 years. Get advice from your mortgage consultant as to what is right for you. The majority of first-time buyers settle for a 2 year fixed rate.

    Mortgage brokers near me that really look after a first-time buyer – Speak to YesCanDo.

    Will you need to have a survey on the property?

    You will need a survey on the property. The mortgage lender will see want to carry out what’s known as a valuation survey. The valuation survey will make sure you are not paying too much for the property and that it is suitable for a mortgage.

    Most Banks and Building societies offer a valuation survey for free if you are a first time property buyer.

    Can I have a more in-depth survey?

    Yes, you can and this makes total sense. A home buyers survey is a more in-depth survey carried out by a property surveyor. This survey will not only make sure you are not overpaying for the property but it will make sure if structurally sound. You will get a report with approximately 20-pages on the condition of the property and many concerns the surveyor has.

    Will I need a Solicitor?

    You will need a solicitor or conveyancer when buying your first home. The solicitor looks after the legal part of you purchasing your first home. They will write to the local authority where the property you are purchasing is located. This is called a local authority search. It checks that there is no issues that you do not know about before you purchase the property. ie road widening or a supermarket being built at the end of the road.

    The solicitor also technically buys the property for you. They draw down the mortgage money and together with your deposit they send it to the solicitor who represents the owner of the property to finalise the purchase.

    What other fees can I expect to pay?

    With the help of your Mortgage Broker, it should be possible to avoid other fees. Usually, lenders will charge arrangement fees however there are many lenders that do not charge these for first-time buyers.

    What next?

    Can YesCanDo help you with a mortgage or move home?

    YesCanDo Money is a family-run independent mortgage broker near Portsmouth. We are whole of market which means we will search the whole mortgage market to get you the best deal and the lowest interest rate. Also, we are a NO FEE mortgage broker which means we will not charge you one penny for our services.

    YesCanDo Money has a great team of very experienced mortgage advisers and mortgage managers on hand to help you every step. We make mortgages simply. We have access to all mortgages available. We live and breathe mortgages and thrive of saving our customers money. So give us a call on 02392 373235 or email us at [email protected] and see how we can help you. Alternatively you can WhatsApp us here and book in a video call with a local mortgage adviser.

    Frequently Asked Questions

    Will I be protected if I use a mortgage broker?

    Yes, you will be protected. All UK mortgage brokers are authorised and regulated by the financial conduct authority.

    Mortgage brokers near me that really look after the first-time buyer – Speak to YesCanDo

    I have heard that mortgage lenders dislike betting

    This is true. Mortgage lenders do not like gambling of any sort. When you apply for a mortgage the mortgage lender will want to see your latest 3 months bank statements and any online betting will show on these. Therefore if you are about to buy a house now might be a good time to stop those football bets!

    What is a standard variable rate mortgage?

    A standard variable rate will not be open to you and nor would you want one. Each lender has there own variable interest rate that you will revert to and the end of your fixed rate. It usually increases your monthly payment and is to be avoided.

    Is it important to have a good credit score?

    It is important however please do not worry too much about this. If you are on the electoral roll where you live and you are up to date with all your payments you should be fine. If you want to make certain that your credit score is good then you can simply

    Mortgage Advisors near me that really look after the first-time buyer – Speak to YesCanDo

    Can I buy the house I am currently renting?

    It may be the case that you are currently renting and you are looking to buy your first home. What if you don’t want to leave your current home, could buying your rental house from your landlord be an option?

    Who are the FCA?

    All mortgage brokers are authorised and regulated by the Financial Conduct Authority FCA. This is for your protection and to make sure that the service and deal you get is the right one for you.

    Do first-time buyers pay stamp duty?

    Great news! The majority of first-time buyers no longer pay stamp duty due to stamp duty relief for a first time buyers.

    Read our guide to learn more: First Time Buyer Stamp Duty Explained

    Are you looking for Mortgage advisers near me that really look after First Time Buyers? Speak to YesCanDo

    Contact our FEE-FREE Mortgage Advisers

    Put the odds of mortgage approval in your favour with the help of a qualified and experienced mortgage broker.
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    Megan Stoyles
    Megan Stoyles

    Megan CeMAP is a dedicated Mortgage & Protection Adviser at YesCanDo Money. With her fresh and approachable style, she specialises in guiding clients through the mortgage process, whether they're first-time buyers, home movers, or interested in buy-to-let. Megan's passion for helping people find their dream homes and ensuring their financial security sets her apart.

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