First Time Buyer Mortgage Broker

Before you begin the process of buying your first home, it’s important to talk to a specialist first time buyer mortgage broker to ensure you’ve got the help and support you need to find your ideal first home.

First time buyer mortgage advice is designed to help you find an estimate of the property you can afford and how much you can borrow within your circumstances.
Our friendly advisors will help you with any questions or concerns you may have in order to find you the most suitable mortgage from over 65 lenders.

What do first time buyers need to consider?

First time buyers will often find that mortgage providers can be cautious about lending to people not currently on the property ladder. However, as long as you’ve met their affordability criteria, these companies will be likely to offer you a property loan. 

Each mortgage lender will prioritize different elements of your application. Depending on the company, your application could be mainly based on your annual earnings or your credit score. Before you begin the process of buying a property, your first time buyer mortgage broker will ask you to ensure you’ve done the following things:

  • You need to have achieved a good credit rating and your credit file shouldn’t have any recent evidence of defaults, County Court Judgements (CCJs), individual voluntary agreements (IVAs), debt management plans or bankruptcies.
  • Depending on the deposit, it is better if (but not essential) to have a good credit history, however, it is possible to get a first time buyer mortgage with bad credit. Subject to status.
  • You’ll need to be able to maintain your credit rating by meeting all your financial obligations on time and fully. This is essential to show lenders that you’re responsible with your payments.
  • You will need to have saved a deposit, gifted deposits from family members are also acceptable - subject to status.
  • The more you’ve saved, the less you’ll need to borrow and therefore, the more likely you are to receive a loan. Most mortgage providers require a minimum of 5% of the cost saved before offering you a loan.

Saving for your deposit

The higher your deposit saved, the more likely you are to have your mortgage offer accepted. The minimum is 5% of the property, so anything lower and you’re highly likely to be rejected, which can impact your future mortgage applications.

However, if you can approach a lender with 10-15% of the purchase price, you’ll find that you’ve got a lot more options available.

Saving 20% or above would be hugely beneficial to you in the long run, as you’ll have access to the best lenders as well as much lower interest rates.

On occasion, you can actually buy a property without a deposit. We don’t advise this, however, as you’ll have to borrow the amount on an unsecured loan, meaning you’ll have to prove that you’re financially capable of paying off both loans.

You will also need to display that your income is enough to both cover your monthly mortgage payments and your living costs. As your mortgage payments will begin immediately once you’ve been accepted, you will need to prove that you’ll be reliable in meeting them.

Applying for an Agreement In Principle

An Agreement in Principle (AIP) is the first step in getting a mortgage. It’s designed to give you a clearer understanding of both how much you can borrow and which properties you can afford. Lenders will frequently enquire about your AIP as it’s a clear indicator of your intention to buy.

Once you have an AIP, you can make a full mortgage application. To apply, you’ll need to provide the bank with your income and outgoings as well as your addresses for the last three years. This process involves a soft credit check, however, this will not affect your credit rating or ability to borrow money in the future. Not all lenders have a soft footprint.

Taking advantage of the Help To Buy initiative

Help To Buy is an equity loan scheme from the government available to help first time buyers get onto the property ladder. Ideal for first time homeowners, this scheme allows you to borrow up to 20% of the cost of a new-build property worth up to £600,000 from the government.

Although you won’t have to pay any fees for the first five years, this loan needs to be paid back less than 25 years after purchase. After the first five years, you will need to pay 1.75% in interest - a figure that will rise with inflation.

Similarly, the Help to Buy Shared Ownership scheme offers you the opportunity to buy a new-build leasehold property from a housing association. Instead of owning the home outright, you will own a 25-75% share with the potential to buy a larger portion in the future.

Why do I need a first time buyer mortgage adviser?

With a first time buyer mortgage broker, you’ll receive support and guidance that can be vital in helping you secure your first property. We can help you through the entire process by helping with any concerns you have and also liaising with a number of third parties involved, including accountants, solicitors and conveyancers, to aid your application.

As your dedicated first time buyer mortgage advisor, Sherwood Mortgages will help you buy the property you’ve been looking for by using your eligibility criteria to find quotes by the lenders most likely to make you a mortgage offer.

If you’re a first time buyer looking for advice on how to get onto the property ladder, Sherwood Mortgages are the brokers for you. We use our expertise to take away the stress when applying for a mortgage, all whilst making sure you’re getting the best deal for you.

To start your journey, contact us today and a member of our team will be in touch as soon as possible to offer you a free personal assessment consultation.

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What are the mortgage product options for first time buyers?

Fixed rate mortgages

A fixed rate mortgage is useful for first time buyers who would prefer to know exactly what they’ll be paying upfront for their home. This product allows you to have a set interest rate for a specific time period - usually between 2-10 years.

Tracker mortgages

Tracker mortgages have fluctuating interest rates depending on the Bank of England’s base rate. Your interest rate will be set at a margin above the base rate and your repayments will increase and decrease as the base rate changes.

Offset mortgages

An offset mortgage allows you to use your own money to reduce your overall balance where interest is charred. An offset mortgage arrangement can lower your monthly mortgage payments, giving you the opportunity to use your savings to shorten your term.

What if I have a poor credit score?

Your credit score is one of the key elements that build your application for a mortgage. If you have a poor credit history, you should always take the necessary steps to boost your score.

As a first time buyer, you may still be able to find a lender willing to offer you a mortgage to buy your first home. These are called Adverse Credit Mortgages and look into a range of different factors that have affected your circumstances.

What other costs do I need to budget for?

Buying a property involves more than just paying the mortgage alone. Your first time buyer mortgage broker will inform you of all the extra costs you’ll need to pay in the process. These costs can include:

  • Occasional legal fees
  • Property searches and surveys
  • Mortgage arrangement fees
  • Stamp duty and home insurance
  • Conveyancing services

What insurance will I need?

Once you own your home, it’s important to take out buildings and contents insurance in order to keep all your assets and possessions safe. The cost of this insurance depends on your house’s value and the area you live in. There are also several extras you can add to your policy including damage cover.

In case of adverse circumstances including you becoming ill, being unable to work or even death, it’s important to take out a mortgage protection policy to ensure your home is taken care of.

FAQs

How much does first time buyer mortgage advice cost?

In order to evaluate your current circumstances, Sherwood Mortgages will offer you a personal assessment consultation. This initial meeting will be carried out on a free, no-obligation basis - it’s simply for us to assess how we can help you get the best mortgage possible.

Should we continue to work together, there will be a fee (approximately usually £295) to cover our in-depth research and further mortgage selection. This will also cover the administration of the application and other insurance applications all the way up to completion of the purchase. We will also receive commission from the provider.

How long does the free personal assessment take?

This free mortgage consultation will last roughly an hour. Once we’ve assessed your current situation, we will provide you with our expert recommendations. You can decide whether or not to proceed with us based on this deal, however, there is no obligation to.

What do I need to bring to my appointment?

To prove you’re in regular work, you will need to provide evidence depending on your status. If you’re employed by someone else, you will need to provide three payslips and you are self-employed, you will have to produce accounts for the past two years.

You must also provide proof of ID, the last three years’ addresses and bank statements from the last three months.

How long does the overall mortgage process take on average?

Once the initial consultation is complete, you can receive your Agreement in Principle within 24 hours of applying. You should receive a formal offer on your mortgage application usually within 1-3 weeks. 

Call to ask any questions:

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About Us

Sherwood Mortgages of Worksop, Nottinghamshire has been advising customers for over 11 years and can assist you in finding the best UK mortgage to suit your requirements and needs.

Read more About Us and what we do by clicking HERE.

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