First-Time Homebuyer: How to get started with mortgages
March 3, 2023
Written by admin
Well done on taking your first step toward becoming a first-time homebuyer!

As a first-time homebuyer, knowing how to get started with mortgages can be just as exciting as it is overwhelming. Particularly if this is your first-ever experience of buying a home.

Whether you choose to obtain a mortgage through your bank, a lender, or a broker, it’s important that you choose the right mortgage for you. With such a wide range of mortgage products available from across the mortgage market, it can be really difficult to know where to start. That’s where we come in as mortgage advisers. We will guide you through the entire buying process from start to finish, and help you make informed decisions about all of the different mortgage options that are available to you.

The benefit in speaking to a mortgage adviser is that you will have access to a wider range of mortgage options from across the mortgage market. Moreover, mortgage advisers can discuss your credit history and future budget whilst clarifying the impacts this can have on your mortgage options.

Who is considered a first-time homebuyer?

A first-time homebuyer is classed as someone who has never owned a residential property before and is looking to purchase one for the first time.

The key ingredient to becoming a first-time homebuyer is to have enough savings together to put down a substantial deposit. Most lenders will require a minimum deposit of 5-10% of the total value of the property from a first-time home buyer. In most cases, the larger the deposit, the lower the risk you are to the lender and therefore the better the mortgage deals available. The deposit not only proves that you’re solvent and have financial discipline, but it also means the mortgage loan is less of a risk for the mortgage lender.

What mortgage types are available to first-time homebuyers?

In the UK there are several mortgage options to choose from if you are a first time homebuyer. We have listed some of the most common types:


Fixed Rate Mortgages:

This is one of the most common types of mortgages that first-time homebuyers start with. Moreover, what makes these mortgages more favorable than others is the fact that your interest rate does not change throughout the agreed term. This is a great option for first-time homebuyers who want to have the security of their mortgage repayments remaining consistent for a defined period of time.


Tracker Mortgages:

The interest rate on this type of mortgage is affected by the Bank of England’s (BOE) base rate. A tracker mortgage tends to be lower than a fixed-rate mortgage. However, it can change as and when the BOE base rate changes.


Discounted Rate Mortgages:

This type of mortgage provides aspiring homeowners with a set discount off the lender’s standard variable rate (SVR). However, this is only applied for an agreed term. Once the term ends, your mortgage repayments will increase/decrease depending on the lender’s current SVR.


Joint Borrower Sole Proprietor:

Joint Borrower Sole Proprietor is a type of mortgage where not all parties to the mortgage are legal owners of the property. For example, if there are two borrowers in the scenario both will be mortgage borrowers, but only one will be named on the title of the property. This is usually taken up by people whose family members want to help them buy their first house or flat.

Capital Repayment:

Capital repayment means that each month you’ll pay off some of what you’ve borrowed and some of the interest on the loan. If you keep your repayments up to date, at the end of the mortgage term you’ll have paid off your mortgage.

Interest Only:

Interest-only means that, you’re only paying the interest on what you’ve borrowed. You’ll be responsible for repaying the original amount you borrowed at the end of the mortgage term.

If none of the above mortgage options suit what you are looking for, there are plenty of more options for you to consider. Speak to one of our mortgage advisers to see what mortgage is most suitable for you.

How to get a mortgage as a first-time homebuyer

The process of applying and securing a mortgage can be overwhelming. However, we aim to make the process as seamless and transparent as possible.

Here are 5 steps to increasing your chances of securing your first ever mortgage!


Maintain a good credit score:

Something that all lenders will run is a credit score check on your finances. This plays a huge factor in whether you will be approved for your mortgage or not.


Gifted deposit:

A gifted deposit is money given by an individual – usually a family member – to a homebuyer to use as a down payment on a property. It could be used for the whole deposit, or just a part of it. The money isn’t a loan and gifted deposits are given with the understanding that the money doesn’t need to be repaid. The person who is gifting the deposit will not be given any stake in the property in return. Their name will not appear on the deeds or the mortgage, for example. They will not hold any ownership or charge over the property.

Save for a deposit:

The more that you can save and put down, the lower you can expect your monthly mortgage repayments to be. This is also a good indication that you will be able to afford to pay back your mortgage loan. Therefore, further increasing your chance of approval. We would recommend aiming for a 15-20% deposit of the total price of the property’s value.


Shop around for different deals and options:

There are so many different suitable mortgage options to pick from. Take the time to really look into what is available to you and keep in mind that not all low rate mortgages may be the most appropriate for you. Some lower rate mortgages come with higher fees which is why it is always good to seek financial advice during this stage.

Organise your documentation:

When applying for a mortgage, you will be required to supply various types of documents that are related to your financial status. This can be documents such as tax returns, bank statements, proof of income and proof of your identity.

See what government schemes are available to you:

Take into consideration what schemes and benefits are available to you. There are various government schemes available to help people purchase their first home. See what government schemes are available to you here. Your mortgage adviser can supply these to you and advise you on what schemes may be most suitable for you and your family.


Securing your first mortgage can be challenging, but certainly isn’t impossible. With the help of a mortgage adviser, you can really make the most out of what is available to you. Before applying for a mortgage, make sure that you have enough income to afford monthly mortgage repayments. Saving for a little longer to put down a bigger deposit, can really relieve some of the financial strain that can come with paying off a mortgage.

If you are unsure whether you qualify for a mortgage, speak to one of our mortgage advisers Birmingham.

Please note

Your home may be repossessed if you do not keep up repayments on your mortgage.

Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 27/02/23.

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