Supporting you every step of the way.
Whether you’ve already started looking, or you’re just starting to save your deposit & want to learn more about how mortgages work, we’re here to help!
Being a First Time Buyer is an exciting time. The next step in life! We love doing First Time Buyer Mortgages. We’ll have a conversation about your current situation & future plans and work together to help you understand which mortgage is best for you, and when you might be able to get it.
We have access to exclusive First Time Buyer deals that are designed specifically to help you get on the property ladder. We work with a comprehensive wide range of mortgage lenders & do all the hard work for you to make sure our recommendation is the best thing available to you.
It’s always good to speak to us to get a clear understanding of the amount you could borrow & how much it would cost monthly to borrow that amount. This helps you budget & means you can filter your property search to see only those properties that are affordable based on your circumstances.
We can provide you with a Decision in Principle (DIP). A DIP is also known as a Mortgage In Principle & is an initial indication from a lender on the amount you may be eligible to borrow. It shows how much they could lend to you after they have conducted a ‘soft’ search on your credit file (which doesn’t affect your credit score). This document is provided as a certificate and is usually valid for between 30-90 as standard. If it expires, we can renew it for you as many times as you need. It’s not a guaranteed agreement to lend, but it gives Estate Agents peace of mind, showing that you are a good candidate for a mortgage & can borrow the required amount to purchase the property they are listing.
When booking viewings or making formal offers, Estate Agents will often ask what your buying position is & if you have PROOF OF FUNDS (Your Decision in Principle). Without a Decision in Principle, your offer isn’t likely to be taken seriously (uh-oh).
Estate Agents & sellers LOVE First time Buyers (yay!) because often you’re buying without a chain. This means that you’re not relying on selling a property to purchase the new one. This puts you in a strong buying position because it means there are likely to be less complications & your purchase is expected to complete faster, which is appealing to sellers.
It’s important that when you put in an offer, it’s within your affordable borrowing limits. When deciding how much to offer, we recommend that you do your own research. Go to RightMove & Zoopla Sold Prices & see what properties nearby have sold for & offer what you believe to be a fair price… & don’t be surprised if there’s some negotiation involved.
Our job is to get you from initial enquiry to completion, answering all of your questions along the way & supporting you through it all. There’s no such thing as a stupid question & we’re always only a phone call away.
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A deposit for a house is the amount you have in savings to put towards the purchase. You’re in a good position if you’ve saved at least 5% of the purchase price as your deposit.
The larger the deposit, the easier it will be to secure a mortgage because not all mortgage lenders offer 95% mortgages, so you’ll have more choice.
The bigger your deposit, the lower the interest rate is likely to be, depending on your circumstances. So the interest rate for a 90% mortgage is likely to be slightly lower than the interest rate for a 95% mortgage because there is less risk for the mortgage lender. The lower the interest rate, the better it is for you.
If you haven’t managed to save 5% or more yourself, GIFTED DEPOSITS are an acceptable form of deposit. The Bank of Mum & Dad can often come in handy in these situations.
If you aren’t fortunate enough to have saved a 5% deposit yet, that’s ok! Housing schemes such as SHARED OWNERSHIP & FIRST HOME SCHEME (Detailed more on the First Time Buyer Support Schemes tab above) have been created to help people like you get on to the property ladder. If you prefer a standard purchase, we can talk about methods of saving for your first home such as the LIFETIME ISA
Don’t forget!!! When buying your first home, you need to have more than just your deposit saved. We’ll always factor these things into your budget right from the word go!
Below is a list of other costs to consider:
We’ll always factor in these costs upfront in our first conversation & make you aware of them before we discuss your budget.
A Lifetime ISA (Also known as a LISA) is an ISA designed to help you save for your first home, or for retirement. The government will give you a bonus of 25% of what you pay in up to a maximum of £1,000 per tax year.
You can put a maximum of £4,000 in to your LISA per tax year. You have to be between 18-40 years old to open an account & a UK resident. You can keep paying into a LISA until you’re 50.
ONLY First Time Buyers can use a Lifetime ISA as their deposit to buy a home worth less than £450,000: you can’t have owned a property before. The first home you buy must be a property you plan to live in & you must be using a mortgage to buy the property on a traditional repayment basis.
If you’re buying with someone else, you can both use your Lifetime ISA towards the deposit.
To withdraw funds from your LISA the account must have been open for AT LEAST 12 MONTHS. You’ll need to make your conveyancing solicitor aware of it so they can request the funds to use towards your purchase. Funds have to be drawn down by your solicitor.
If you withdraw the funds & you are NOT buying your first home, or you are ineligible based on the above, you’ll pay a 25% penalty.
If you have a Help to Buy ISA from a long time ago, beware that you cannot use BOTH your Help to Buy ISA & your LISA. Help to Buy ISA’s are now closed to new applicants but can still be used until November 2030.
The First Homes Scheme is available to first time buyers aged 18 or older who are able to get a mortgage for at least half the price of the home. This scheme is not available if the household combined income is more than £80,000 (or £90,000 in London).
Developers offer these homes at 30-50% BELOW Market value but the property must then be sold at a later date at the same discount to someone else who is eligible for the First Homes Scheme.
Homes cannot cost more than £250,000 (or £420,000 in London).
Availability is very limited & local council eligibility conditions apply. Priority may be given to essential workers or those on lower incomes or those who already live in the area.
To apply you must contact the developer who will do an application with you that will then be sent to the council to make sure you’re eligible. Make sure you tell the developer we’re your Mortgage Advisor when you apply. You do not have to use the broker they recommend.
If you’re eligible, they’ll contact you & it’s time to apply for your mortgage.
Be aware that it may be more difficult to resell these properties in the future due to many of the UK population not being eligible under the First Homes Scheme requirements.
The deposit unlock scheme is to help first-time buyers & home movers buy a new build property with just a 5% deposit. Traditionally you need at least a 15% deposit to buy a new build property, but this scheme has reduced that figure, making new builds more accessible for first-time buyers & home movers.
A very limited number of lenders are taking part in this scheme, but we can help you find them! It has given developers confidence to keep building knowing more people will be eligible to buy their properties.
House builders pay to insure the mortgages meaning that lenders can offer higher value mortgages to their customers. This scheme is available from participaying homebuilders only.
It’s important to note that 95% mortgage are widely available on second-hand properties without as many limitations, so you may want to consider that option as well.
Shared Ownership isn’t specific to First Time Buyers but could still help you, depending on your circumstances. If you’re struggling to save a large enough deposit but you’re itching to get started now, have you considered Shared ownership?
Click HERE to view our Shared Ownership page
Your home may be repossessed if you do not keep up repayments on your mortgage
Whether you’re just getting started & want to ask some questions, or you’ve already been looking & need a Decision in Principle quickly, it all starts here. Get in touch for an initial, no obligation, informal chat
Plura is a trading name of Plura Mortgage Advice Ltd which is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd. First Complete Ltd is authorised and regulated by the Financial Conduct Authority. Registered Office 25-29 Sandy Way. Yeadon, Leeds, LS19 7EW. Registered in England & Wales with company number 14931418. We charge a fee for Mortgage Advice, usually £395, but this can vary depending on the service you are receiving. We’re also paid commission from the lender
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK
