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First Time Buyers

Take the next big step in your life and find how to buy your first home. We are here to make it a reality.

First Time Buyer Mortgages

If you are looking to buy your first home, the whole process can seem a bit daunting if you’re not sure where to start.

  • Why use an advisor? Get professional advice along the whole home ownership journey. An advisor will assess your affordability and talk you through your options; making the process as easy as possible.
  • First time buyer? The term ‘first-time buyer’ might seem straightforward, but it actually varies depending on the lender and government regulations. For instance, if you’re part of a couple where one has previously owned a property, or if you have owned a commercial property, you may not be classified as a first-time buyer.
 
First time buyers

You can ask us anything!

There are plenty of rules and regulations when it comes to buying a home so, understandably, you might be confused about where to begin. If you get one mortgage offer from a mortgage provider, you might assume that this represents the kind of offer that you are likely to get from all lenders – but this isn’t necessarily the case.

Town & Country Mortgage Services offer a broker service that delivers expert advice and guidance during this daunting time – we have access to the vast mortgage market so you can be sure you’re getting the best deal.

 

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Types of mortgages for first-time buyers.

Choosing the right mortgage is a key first step. Don’t worry, we won’t overload you! Here’s a breakdown of the most common options for first-time buyers:

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A Fixed Rate Mortgage for buy to let properties mean your monthly payments will stay the same during the duration of your mortgage. You agree on an interest rate for a set period, typically 2 to 10 years. So no matter what the market or the Bank of England does your monthly payments stay the same.

If you’re someone who likes predictability, this type of mortgage is perfect for you. The only catch is the fixed rate will change when you mortgage comes to an end. Once the fixed-rate period ends, the mortgage usually reverts to the lender’s Standard Variable Rate (SVR), which may be higher. But don’t worry, you can simply remortgage to a new fixed rate once your term ends.

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Standard Variable Rate (SVR) Mortgages interest rates fluctuate depending on the Bank of England’s base rate and the lender’s own costs.

This means your monthly payments could go up or down. While this offers less certainty compared to a fixed-rate mortgage, it also means you could benefit from lower payments if the interest rates drop. But, rates can also rise, making your mortgage payments more expensive.

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A Tracker Mortgage is another variable type of buy to let mortgage. The tracker rate usually follows the base rate, plus a bit extra. For example, if the base rate is 1% and the tracker rate is base rate plus 1.5%, you’d pay 2.5%.

Tracker mortgages can be great if you time it right. When interest rates are low or falling. But again, this can be risky if interest rates rise.

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Discounted variable rate mortgages are tied to the mortgage lender’s Standard Variable Rate (SVR). These mortgages offer a discounted rate for a fixed period, typically ranging from 2 to 5 years.

Often presenting the lowest interest rates and smallest monthly repayments, these mortgages can be particularly attractive to first-time buyers. However, it’s crucial to remember that both the interest rates and monthly repayments are subject to change at any time.

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If you’re self-employed, considering using a family member as a guarantor, or facing other unique circumstances, a specialist mortgage could be for you.

These mortgages are designed to assist first-time buyers in overcoming common hurdles to homeownership. Speak to one of our advisors for more information. 

Fixed-rate mortgages rank among the favored choices for homebuyers. This mortgage type secures your interest rate for a set duration, commonly two, three, or five years, with some lenders offering options to fix it for as long as 10 years.

These mortgages aid in financial planning by keeping your mortgage payments consistent throughout the fixed term. During this time, you’re shielded from potential increases in interest rates. However, it’s important to note that you won’t gain any advantage if the interest rates decrease.

Variable-rate mortgages give your lender the flexibility to adjust the interest rate over the term of your mortgage. Every lender has a Standard Variable Rate (SVR) that varies with market changes. Consequently, when interest rates go up, you’ll pay more in interest, but you’ll benefit from lower charges when rates fall.

However, most borrowers tend to steer clear of SVR mortgages, as they typically come with higher interest rates compared to other types of mortgages.

Tracker mortgages are directly linked to the Bank of England base rate. This link means your monthly interest payments will increase if the base rate goes up, but they’ll decrease if the base rate drops.

Usually, a tracker mortgage is set at a certain percentage above the base rate, for instance, base rate plus 1%. So, if the Bank of England base rate is 4%, your mortgage interest rate would be 5%.

Discounted variable rate mortgages are tied to the mortgage lender’s Standard Variable Rate (SVR). These mortgages offer a discounted rate for a fixed period, typically ranging from 2 to 5 years.

Often presenting the lowest interest rates and smallest monthly repayments, these mortgages can be particularly attractive to first-time buyers. However, it’s crucial to remember that both the interest rates and monthly repayments are subject to change at any time.

Explore the diverse range of support options available from lenders for more intricate mortgage needs. Whether you’re self-employed, considering using a family member as a guarantor, or facing other unique circumstances, specialist mortgages cater to a variety of scenarios.

These mortgages are designed to assist first-time buyers in overcoming common hurdles to homeownership. In this section, you’ll gain comprehensive knowledge about the various specialist mortgages that can facilitate your journey onto the property ladder.

What level of mortgage do you qualify for?

Working with a first time buyer mortgage advisor is a great option financially and for peace of mind. We assess your affordability and talk you through all your options to help make your home ownership dream a reality.

  • Online Mortgage Calculator: Use our handy tool to estimate how much you might be able to borrow based on your salary. Play with different scenarios and see how your borrowing power adjusts!
  • Free Expert Consultation: Our team provide in-depth advice based on your earnings and deposit, helping you find the ideal mortgage for your first home.
  • Full Mortgage Management: From creating and submitting your mortgage application to managing all stages of the process, we ensure a seamless and stress-free experience, keeping you informed throughout.
First Time Buyer Moving Into Their Home

FAQ: First-Time Buyer Mortgages

As a first-time buyer in the UK, the deposit you will need to buy a property can range from 5% to 20% of the property’s purchase price. The exact amount can vary based on your mortgage lender and the specific mortgage products available to you.
First time buyers in the UK do not need to pay stamp duty on properties up to £300,000. For properties costing up to £500,000, you will pay no stamp duty on the first £300,000 and 5% on the remaining amount.
Completion day means that your purchase of your new home is finalised! Congratulations, you now own your own home and you will receive the keys to your new property!
Choosing between a new build or an older property depends on your personal preferences and priorities. New builds offer modern design, energy efficiency, and lower maintenance costs, but may carry a premium price. Older properties tend to offer character, potentially larger spaces, and the opportunity to add value through renovations. The decision should be personal to what you are looking for in a home!

Your monthly mortgage payment depends on the loan amount, interest rate, and term of your mortgage. Take a look at our monthly payment calculator here to work out how much you could pay.

The amount you can borrow for a mortgage in the UK is usually 4 to 4.5 times your annual income, although this can vary based on the lender. Take a look at our borrowing calculator here for how much you could borrow. 

Buying your first home can come with a lot of questions and may seem daunting. Working with a mortgage broker offers support the whole way through the process. At T&C we offer a tailored approach to finding your ideal mortgage, offering expert guidance through a wide range of mortgage options, insurance protections, and diverse lenders.

How does Town & Country Mortgage Services work?

At Town & Country Mortgage Services, we streamline the home-buying experience with our expert guidance, ensuring your journey is in professional hands.

As an award-winning, FCA-registered broker, our free mortgage and protection advice is designed to cater to both first-time buyers and experienced investors. Trust in Town & Country Mortgage Services for a comprehensive and hassle-free home-buying experience.

Michael Roberts
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I am more than happy to recommend Ben and his team to anyone seeking a mortgage, particularly first time buyers, as I felt Ben’s approach was not only consultative but also understanding of the stresses’ surrounding buying a first home.
Elisabeth O'Shea
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Lizzie was fantastic from start to finish!! So Professional, really helpful and super friendly!! She is knowledgable, explained everything in detail and offered me lots of options. Made a daunting task simple and straight, forward taking care of everything behind the scenes.
Sam Ali
Read More
We would genuinely recommend Town & Country to anyone, the care, understanding and bespoke and tailored customer experience has been second to none. It's great to have an end-to-end trusted relationship and Town & Country is our trusted recommendation to anyone.

Free Initial Consultation

We'll discuss your current situation and property aspirations, and assess your borrowing potential to guide you towards suitable mortgage lenders.

Agreement in Principle (AIP)

An AIP is prepared, giving an estimate of your borrowing capacity. With an AIP, you can confidently search for properties within your budget and make offers.

Tailored Mortgage Advice

Once an offer is accepted, we provide specific lender and mortgage product recommendations. We handle all aspects of your mortgage application, ensuring a smooth process.

Michael Roberts
Read More
I am more than happy to recommend Ben and his team to anyone seeking a mortgage, particularly first time buyers, as I felt Ben’s approach was not only consultative but also understanding of the stresses’ surrounding buying a first home.
Elisabeth O'Shea
Read More
Lizzie was fantastic from start to finish!! So Professional, really helpful and super friendly!! She is knowledgable, explained everything in detail and offered me lots of options. Made a daunting task simple and straight, forward taking care of everything behind the scenes.
Sam Ali
Read More
We would genuinely recommend Town & Country to anyone, the care, understanding and bespoke and tailored customer experience has been second to none. It's great to have an end-to-end trusted relationship and Town & Country is our trusted recommendation to anyone.

Discover More in Our Expert Guide.

Embark on your home-buying journey with confidence using our comprehensive First-Time Buyers Guide. This detailed resource is specifically created to guide new buyers through the exciting yet complex process of purchasing your first home.

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