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Compare First time buyer mortgages

Everything you need to know about the best deals for first-time buyers, including incentives like cashback, low fees, or a contribution towards legal costs.

First time buyer mortgages

Choosing a mortgage is daunting, especially if it’s your first one. But there’s no need to be anxious – we’ve put together advice on what to consider and how to find the best one for you.

Warning: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Overall representative example:

Based on borrowing

Initial rate

Lender fee

£170,000 over 25 years

2.27% fixed for 2 years (24 instalments of £737.41pm)

£565

The overall cost of comparison

Subsequent rate (SVR)

Total amount payable

4.02% APRC representative

4.31% variable for the remaining 23 years (276 instalments of £913.57pm)

£270,408.44

First Time Buyer – Frequently Asked Questions

What is a first-time buyer mortgage?

Many lenders have mortgages aimed specifically at first-time buyers. They often include deals and incentives, such as cashback or a higher LTV (which means your deposit will be lower), with the aim of helping you to get on the housing ladder (and to tempt you to do it with them).

First-time buyer mortgages tend to share all the other features of a typical mortgage, so you’ll have a loan to value ratio, a mortgage term (the length of the mortgage), and you’ll need to pay back your mortgage every month.

Housing schemes for first-time buyers

Over recent years there’s been a steady increase in the number of people purchasing their first home.

While the financial crisis of 2008 gave way to ‘generation rent’, financing options have responded to the needs of first time buyers in the current climate. These options have helped first time buyers increase by 75% since the year of the recession:

  • There’s a range of government schemes designed to help first-time buyers.
  • Equally, there’s thousands of mortgages on the market all of which are theoretically available to first-time buyers.
  • Banks and building societies also package specific deals for first-time buyers, which may include incentives such as cashback, low fees or a contribution towards legal costs.

How much can I borrow as a first-time buyer?

As with any other form of borrowing, it depends on a number of factors. Lenders will take into account your credit rating and history, your income and outgoings, and how much you have as a deposit.

They’ll also need to factor in other influences, such as how an increase in interest rates might affect your ability to pay back your mortgage. A mortgage provider will consider all these factors when deciding whether they want to offer you a mortgage and, if so, how much you can borrow.

What mortgage is right for me as a first-time buyer?

Claimanything makes it easy for first-time buyers to choose the right mortgage. Whether you have a big deposit or small, want a fixed or a variable rate deal, we compare first-time buyer mortgages from a wide range of lenders so it’s one less thing for you to worry about. What’s more, our comparison service is free, independent and online.

Fees for first-time buyer mortgages

Don’t forget to factor fees into your cost calculations. Most lenders charge an arrangement fee for your mortgage, which could be £1,000 or more. Some also levy a non-refundable booking fee of several hundred pounds.

Also, don’t forget the other fees and costs associated with buying a home – you’ll have to pay for a survey and for the conveyancing. Then of course, there’s the cost of furnishing your first home.

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Claim Anything is a credit broker, not a lender to provide this mortgage comparison service. Our services are provided at no cost to you, but we may receive a commission from the companies we refer you to.