First Time Buyer Mortgage Brokers & Advice
Start your journey today with our free advice service. Or if you have found a property and require a mortgage in principle or require a mortgage advisor, get in touch now.
In this guide
Why should I obtain mortgage advice as a first time buyer?
Our expert first time buyer mortgage advisors are passionate about making sure you get the best available mortgage for your first step onto the property ladder. The right mortgage can save you money, at a time when every last penny is particularly important!
YesCanDo are ‘whole of market’ which means we search the entire market for every available mortgage to get you the best rates and deals. We do not charge for our services as different mortgage lenders pay us.
Our fee-free first time buyer mortgage advisors are there to guide you throughout the home-buying process. While we focus on the mortgage application, you can focus on the excitement of property hunting.
What is the process for first time buyers to get a mortgage?
Our mortgage advisors have helped thousands of first-time buyers purchase their first home.
Our UK independent mortgage advisors are here to advise and look after you during the property buying process.
The YesCanDo Money team have the knowledge and experience to help you achieve the best mortgage to buy your first home. We will be there for you every step throughout this journey.
Detailed below is the process of how to get your first mortgage broken down into 10 steps:
Step 1: Work out your deposit and how much you can borrow
When you’re buying your first home you will need to pay a deposit as part of your mortgage. This goes towards the cost of the property you’re buying alongside what you borrow.
A bigger deposit will give you access to better interest rates.
The minimum deposit you will need as a first time buyer is 5%.
- Learn how much deposit you need for a house.
- Learn how to raise money for a house deposit and where to save it.
Loan to Value
You may have heard the term ‘loan-to-value’ or ‘LTV’ before. This is the amount of your home that you own outright vs the amount that is secured against a mortgage.
For example, a £25,000 deposit on a £250,000 property means that the deposit is 10% of the price of the property and the loan to value or LTV is the remaining 90%.
Your interest rate is likely to be lower if your LTV is lower. This is because smaller loans are much less of a risk for mortgage lenders.
How much can you borrow?
Before you start house hunting, it’s important to work out how much you can borrow.
This will help you narrow down your house search when you’re looking at properties.
It’s also important to consider how much you can realistically afford to borrow.
To work out how much you may be able to borrow, you could use one of many mortgage calculators. However, you don’t need to do this as a free mortgage broker can work out all these figures for you. Speak to one of our mortgage advisers for free advice.
After finding how much you may be able to borrow, you should add up all the other costs that relate to the mortgage application and your house move. Such costs include:
- Stamp duty – As a first time buyer, you will pay no stamp duty if your purchase price is below £500,000.
- Appraisal fees
- Legal costs
- Application fees
Some brokers will also charge a fee. At YesCanDo Money, we do NOT charge a fee when you use our services. We compare mortgages from the whole market to find you the best available rate and deal.
If your thinking about getting an interest-only mortgage for first time buyers < then read this.
Step 2: Get a mortgage in principle (MIP)
A mortgage decision in principle is an agreement from a bank or building society that they will lend you a pre-agreed mortgage amount to enable you to buy your first home. This can also be called a decision in principle.
Once your offer on a property is accepted we will then be able to get started on your full mortgage application.
Getting a Mortgage in Principle is always recommended.
A broker or lender will look at your income, credit commitments and other outgoings to check your affordability for a mortgage. Once you have chosen a mortgage product, we will secure the agreement in principle.
The agreement in principle isn’t a legal document. The lender could still refuse the mortgage on the terms they have set out, but it is a useful indicator of how much you may be able to borrow.
The Mortgage In Principle will:
- Give you a better idea of what houses you may be able to afford
- Show any estate agent that you’re a serious buyer with proof of a mortgage loan
YesCanDo Money can create and provide the mortgage in principle for you within 24 hours. Get in touch with us to learn more. Speak to us before applying for a mortgage with a high street bank or building society.
The MIP is also known as an ‘agreement in principle’ or even a ‘decision in principle’.
We have more advice here: How to get a mortgage in principle.
Step 3: Get house hunting
When you know how much you may be able to borrow you can begin house hunting for the property you want to buy. Popular websites to consider include:
You don’t need to hurry the house hunting process as it’s important to find the right home for you. However, it’s worth noting that mortgage in principles last for between 30 and 90 days. If you haven’t found a property in that time, you will need to re-apply for another.
Step 4: Choose your best-suited mortgage
Different types of mortgages are available in the UK. These include:
- Fixed-rate mortgages
- Help to Buy mortgages
- Buy-to-let mortgages
- Capped mortgages
- Small deposit mortgages
- Discounted mortgages
- Offset mortgages
- Tracker mortgages
We explain in more detail about the different types of interest here.
We will explain Fixed-rate mortgages below as this is the most common type of mortgages.
Considered the most common type of mortgage interest rate is the fixed-rate mortgage. As the name indicates, a fixed-rate mortgage has a fixed rate of interest for a set period of time. This mortgage term tends to vary between two and ten years, however, there are some deals where a longer term is available.
The main advantage associated with this type of mortgage is that you have the peace of mind that you are going to be paying the same monthly payment every month for the fixed period/term. Make sure you get advice from a mortgage adviser before you pick one of the many fixed-rate mortgages with a long term. Having to stop a fixed mortgage rate because you are moving home or wanting to change your mortgage can be very costly sending on your financial situation.
At YesCanDo Money, we can search the whole market and help you find the best mortgage for you.
Step 5: Find a conveyancing solicitor
A conveyancing solicitor will handle the legal aspects that relate to buying and selling a property.
You should choose a solicitor as soon as you have agreed to an offer.
To find a solicitor:
- Ask for recommendations from friends and family members
- Read their online reviews
- Speak to a broker for advice
Your lender might recommend a solicitor to you but you do not have to use them.
We have more advice here: How to find a conveyancing solicitor.
Step 6: Apply for a mortgage
When it comes time to apply for your mortgage, give your mortgage broker the documents they need to begin the process.
As well as your bank statements, they will need documents that give proof of your ID, address, and income. Such documents can include:
- Tax returns
- Driving licence
- Gift letters
Contact us to learn more.
Step 7: Valuations and Surveys
Your lender will ask for a valuation to check that the property value matches up with what it was valued it by yourself or the estate agent.
This valuation will be carried out by somebody with surveying experience. Some lenders will ask you to pay for the valuation as one of your mortgage fees.
After the valuation, they will decide how much to give you for your mortgage.
If the lender offers you a mortgage at less than the buyer’s asking price, you can either:
- Source the rest of the money needed elsewhere
- Renegotiate with the seller
- Find a different lender
Most lenders offer a free basic survey to your first home. The survey is for yours and the lenders peace of mind that the property is in good shape.
The are many different types of survey that you can learn about via the links below.
- Homebuyer Surveys and Costs
- Get a free instant online survey and conveyancing quotes.
Step 8: Get your mortgage offer
When you get your mortgage offer, you are finally on the way to securing your new home. Once you have the offer, it is usually valid for between 3-6 months.
The mortgage offer will be given to you after:
- You have successfully completed your mortgage application
- The valuation report has been completed
If you are happy with the mortgage offer you can accept and sign it. Your solicitor will then start the final phase of the buying process, including the exchanging of contracts between you and the house seller (vendor).
If your application is initially declined, your journey isn’t over. It might be that you didn’t meet the lender’s lending criteria. Our mortgage advisers will help you find a more suitable lender as there’s hundreds to choose from.
Step 9: Exchange Contracts
This is where you seal the deal between you and the house seller.
Both yours and the seller’s solicitors will exchange contracts. All you need to do is sign yours.
After contracts have been exchanged, a date will be agreed for receiving the keys to your new home. This is called Completing.
Step 10: Completion & moving into your first home
Here’s the exciting part!
You have now completed on your first home purchase! You can now get your keys and move into the home on the agreed date. Heres to begining the next chapter of your life. Hoorah!
YesCanDo will then look after you and make sure you remortgage to save money when you need to.
Frequently Asked Questions
What information will I need to get a mortgage?
Maybe you are worried about what information you will need to get together before you can get the mortgage underway. The information you need varies depending on which bank or building society you are getting a mortgage from however here is a list of information that will always be required from you as a starting point: –
- Driving licence
- Proof of name & address
- Proof of income
- Proof of deposit
- Latest 3 months bank statements
Read more on what information you will need before applying for a mortgage here »
How do our mortgage advisors find you the best mortgage?
There are so many options out there that it can be very confusing. Here at YesCanDo Money we give honest straight-forward and easy to understand financial advice.
We take care of all the mortgage administration and liaise with estate agents, mortgage lenders and solicitors to make sure the process is as smooth and hassle free for you as possible. Our mortgage brokers will find the best deal for YOU!
Being an independent business, we provide a service based on how we would like to be treated ourselves by offering appointments at a time and place most convenient for you – call us today to book a daytime or evening appointment at either our office or your home. We don’t think that is an offer you will see many other places!
How do I work out what mortgage I can afford?
It is important you know how much you can afford to borrow. It is not ideal to stretch yourself if you are likely to struggle to keep up with the mortgage repayments.
Our FREE mortgage service exists to expand your knowledge on mortgages and everything that comes with it. We will go over your options in a clear and understandable way and help you feel confident in what is achievable for your situation.
All mortgage lenders will want to see proof of your income, certain expenditure and any debts you may have. They might even ask for information about other household bills, child maintenance, and personal expenses.
Mortgage lenders require this information as their aim is to prove that you are able to keep up with the mortgage repayments if interest rates rise.
You will also need to consider your costs of owning a home such as household bills, council tax, insurances and flat costs (if applicable).
Lenders may refuse to offer you a mortgage if they don’t think you’ll be able to afford it or if your credit score isn’t high enough. We highly recommend that you read the below blog to make sure you a mortgage ready!
What are the different types of mortgages available for first time buyers?
You will have a choice of both fixed or variable interest rates with your chosen mortgage.
A fixed-rate mortgage means your repayments will continue to be the same for a certain time period. This is usually between two to five years.
These rates will be fixed regardless of what interest rates are doing through the mortgage market which means your interest and repayments will remain stable. However, if rates change you will lose out on the benefit of a lower rate.
The rate paid on a variable-rate mortgage can increase or decrease in line with the Bank of England base rate.
If you choose a variable-rate mortgage, then the interest rate you pay will move up and down depending on the market. Your interest and repayments are then fully dependent on the market at the present time.
What are the different types of mortgage repayments for first time buyers?
A repayment mortgage is where you pay both the interest and part of the capital off every month. When the term comes to an end, you should be at a point where you have paid it all off and therefore you own your home.
This is what it says on the tin, interest-only mortgages mean you only pay the interest on the mortgage loan. This, however, means you will pay nothing off the capital (the amount you borrowed).
These mortgages are becoming both unfavoured and unheard of. This is because as you are only paying off the interest, you will be left with a debt that could potentially stay with you without the means to repay it.
This means that these mortgages are becoming much harder to come by as lenders and regulators are worried about homeowners being left with a huge debt and no way of reducing it.
If you do get an interest-only mortgage, you will have to have a separate repayment plan. This plan will decide how you repay the original loan (capital) at the end of the mortgage term.
Combination of repayment and interest-only mortgages
There are mortgages out there which will allow you to split your mortgage repayments between both repayment and interest-only mortgage.
How can I make sure I have a good credit rating?
When it comes to getting a mortgage, it’s best to have a clean slate but we understand that this isn’t always the case. Most mortgage lenders look back at your past 6 years credit history therefore you want to make your credit file look as clean and strong as possible. You can achieve this by ensuring/having/areas to focus on/focusing on these areas:
- NO Defaults and late payments
- NO to Pay Day Loans
- NO to Gambling
- Your Overall Credit Score and Debt
Read more on What Credit score is needed to buy a house »
When should a first time buyer get life Insurance?
There are many different arguments for the right or ideal age to get life insurance but actually the simple answer to this is that once you have someone who will financially suffer if you were to die or be diagnosed with a critical illness then it should be in place. The youngest age you can get life insurance is age 16.
Mortgage protection is very important! Read more about life and critical illness insurance here »
FREE First Mortgage Specialists
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Get in contact and let us know what the best time is for us to call you. We will get one of our mortgage advisors will be in touch to talk through your situation and available options.