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.
How much can i borrow?
Our calculator helps you work out how much you might be able to borrow based on your income.
First Time Buyer Guide
When your buying your first home its very normal to have loads of questions! Our first time buyer guide will give you an overview how to buy a property and what the process entails.
Compare mortgage rates
Explore the best mortgage product for you and compare what different lenders have an offer.
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:
Fixed-rate mortgages
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.
Standard variable-rate mortgages
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
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
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.
Specialist mortgages
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.
FAQ: First-Time Buyer Mortgages
How much deposit do I need as a first time buyer?
Do I need to pay stamp duty?
In the UK, you do not need to pay stamp duty as a first-time buyer if the cost of the property you want to buy is under £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.
What happens on completion day as a first time buyer?
Should I buy a new build or an older property?
What will be my monthly payment amount?
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.
How much can I borrow?
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 and your credit score. Take a look at our mortgage calculator to get a rough idea of how much you could borrow, and what you could afford to pay back
Why should I use a mortgage advisor?
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.
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. Once you get an agreement in principle, 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.