First Time Buyer Shared Mortgages

Mortgage Quote Line

0845 108 0505

• Mortgages
• Credit Cards
• Loans
• Investments
• Life Insurance
• Home Insurance
• Insurance

First Time Buyer FAQs

The mortgage market and getting a mortgage loan can be confusing for first-time buyers.

Read these frequently asked questions for more information about buying a home for the first time.

Use the links within these questions for more information on each of the topics.

As a first-time buyer, why should I buy instead of rent?

Buying a house as a first-time buyer is an investment. When you rent a house, the amount spent on rent goes into the pocket of a landlord. However, when you own your house, every penny you spend on mortgage repayments and improvements is an investment for your future.

Furthermore, house prices usually climb every year, and owning a house can be a fast way to build wealth. Furthermore, having your own home means having your own space.

More: Buying vs renting for first-time buyers

I ran up some debt as a student and missed repayments, I have bad credit. Will this stop me from becoming a first-time buyer?

Being a bad credit first-time buyer does not automatically prevent one from buying property, however it can make the process more difficult and mortgage loans more expensive.

More: Poor credit mortgages guide

As a first-time buyer, how much deposit do I need to buy a house?

The amount of money you need for a deposit will depend on a number of factors, including your credit history, the type of mortgage you want to get and the value of the property you are trying to buy. First-time buyers typically need to save over 5 per cent of the property value, although under 10 per cent of property value may attract higher lending charges. Other types of mortgage loan, such as guarantor mortgages, professional mortgages, 100 per cent mortgages and 125 per cent mortgages may not require the first-time buyer to raise a deposit.

More:

• Graduate mortgages
• 100 per cent mortgages
• 125 per cent mortgages

As a first-time buyer, how do I know if I can get a mortgage?

Using a mortgage calculator is a good way to start.

How do I find a mortgage lender to help me become a first-time buyer?

Finding a mortgage lender can be difficult for first-time buyers. There are literally hundreds of mortgage lenders on the UK market, many of whom are actively seeking first-time buyer customers. These can include specialist mortgage lenders, high street banks and building societies and numerous smaller brokers. The first mortgage lender is not always the best choice for first-time buyers, and getting an idea of the competition can be sensible.

What extra costs do first-time buyers incur when they are getting a mortgage loan?

There are a variety of extra costs on top of simply making a monthly mortgage repayment. These include obvious external costs such as council tax and utilities, as well as a number of mortgage-related costs such as stamp duty, legal fees and valuation fees.

More: First-time buyer extra costs checklist

How long should my first-time buyer mortgage last?

The total repayment period for your mortgage loan will typically be between 20 and 30 years, although this can vary. In this time the first-time buyer will repay the value of the home as well as the interest on the amount borrowed. Early on, most of the repayment is on the interest, but over time more is repaid on the capital.

As a first-time buyer, what do I need to have with me when applying for a mortgage loan?

Prospective first-time buyers, on going to meet their mortgage broker or lender, will be told what they have to bring along to the meeting. This can include identification, tax and income records, bank statements and payslips and evidence of other assets. The more information you are armed with to inform the lender of your financial position the better.

How do I know which mortgage type to choose as a first-time buyer?

There are a massive variety of mortgage loans on the UK market. If you are using a mortgage broker, they should be able to help and advise you on what type of mortgage loan to choose. Please use Mortgages.co.uk to search for independent information about each type of mortgage loan. The majority of first-time buyers choose fixed-rate mortgages or tracker mortgages.