Starting Your Property Journey
Buying your first home is exciting but can feel overwhelming. From understanding affordability to choosing between fixed and variable rates, there's a lot to consider. The good news is that many lenders offer products specifically designed for first time buyers, sometimes with preferential rates, cashback offers, or reduced fees.
As a first time buyer, you'll need to consider how much deposit you can save, what monthly payments you can afford, and which type of mortgage suits your circumstances. Understanding these factors helps ensure you choose a deal that works for you now and in the future.
Deposit Requirements
Most lenders require a minimum 5% deposit, though larger deposits unlock better rates. Each threshold - 10%, 15%, 20%, 25% - typically brings improved rates. The jump from 5% to 10% deposit often makes the biggest difference to available rates and monthly payments.
If saving a deposit seems challenging, consider government schemes like Shared Ownership or the Lifetime ISA bonus. Some lenders also accept gifted deposits from family members, though they'll want documentation confirming the gift doesn't need to be repaid.
Government Support Schemes
Several schemes exist to help first time buyers. Shared Ownership lets you buy a share of a property (25-75%) and pay rent on the remainder. The First Homes scheme offers new builds at significant discounts. Lifetime ISAs provide a 25% bonus on savings up to £4,000 annually for first-time purchases.
Each scheme has eligibility criteria and limitations. Our advisors can explain which schemes you might qualify for and how they work alongside a mortgage.
Choosing Your First Mortgage
Most first time buyers choose fixed rate mortgages for payment certainty during their early years of homeownership. Two-year fixes are popular for those who might want flexibility soon, while five-year fixes offer longer-term stability. Consider what matters most to you - low initial payments, payment certainty, or flexibility.
Remember that your first mortgage isn't forever. When your initial deal ends (typically after 2-5 years), you'll have the opportunity to remortgage to a new deal based on your circumstances at that time.