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If you’re a first-time buyer, navigating the mortgage market can be daunting.

With so many options available, it’s hard to know where to start. In this guide, we’ll talk you through the different types of first-time buyer mortgages, their advantages and disadvantages, and what you need to consider before applying.

The two main types of mortgages available to first-time buyers are fixed-rate and variable-rate mortgages.

Fixed-rate mortgages offer a set interest rate for a specific period, usually between two and five years, providing peace of mind that your monthly repayments will remain the same.

Variable-rate mortgages, on the other hand, can fluctuate depending on the Bank of England base rate, meaning your monthly payments could go up or down.

Other options available to first-time buyers include Help to Buy schemes, shared ownership, and guarantor mortgages. Help to Buy schemes have historically provided customers with a loan of up to 20% of the property’s value, interest-free for the first five years.

Shared ownership allows you to buy a share of a property and pay rent on the remaining share. Guarantor mortgages involve a family member or friend providing a guarantee against your mortgage payments, making it easier for you to get approved.

Before applying for a first-time buyer mortgage, there are a few things to consider.

Firstly, it’s important to make sure you have a good credit score. This means paying your bills on time, registering on the electoral roll, and avoiding applying for credit too often.

Secondly, you’ll need to have saved up a deposit. Most lenders require a minimum deposit of 5% of the property’s value, although the more you can save, the better your chances of getting approved for a mortgage with a lower interest rate.

If you are looking for a mortgage as a First Time Buyer, we recommend booking a FREE call with our advisory team. You can do this quickly and simply by following the contact details below.

Talk to us.

We’re a tight and focussed team, so we work strictly by appointment only. Book your initial consultation at a time to work around you.