Question 1

Is It Difficult to Get a Mortgage as a First-Time Buyer?

Accepted Answer

Getting your first mortgage can be fairly straightforward if you have a regular income, a deposit saved and a good credit history.

You don’t need any previous mortgage experience, and lenders don’t expect first-time buyers to understand the process before applying.

The difficulty usually comes down to your financial circumstances and how well they meet a lender’s requirements.

For example, you might have recently started a new job, receive part of your income through overtime or have missed a credit payment in the past.

These aren’t necessarily reasons for a mortgage application to be declined, although they can affect which lenders are willing to consider you.

It’s worth speaking to a mortgage broker before making an application, particularly if you’re unsure how something in your financial history might affect your chances.

We can look at your circumstances and help you establish which lenders may be suitable before you start applying.

Question 2

How Do Mortgage Lenders Assess My Income?

Accepted Answer

Mortgage lenders look at your earnings to establish how much of your income they can use towards a mortgage application.

If you’re employed, your basic salary is usually the starting point. You may also receive overtime, bonuses, commission or income from a second job, which certain lenders can take into account.

For example, if your salary is £28,000 and you earn an additional £5,000 through overtime, a lender may be willing to use some or all of that extra income when calculating your borrowing amount.

They’ll normally review your recent payslips to see how regularly you’re paid and check any additional earnings you’ve received.

You’ll also need to provide details of your existing financial commitments, such as loan repayments, credit card balances and regular household expenses.

Lenders use this information alongside your earnings to work out what mortgage repayments they believe you can afford.

If your income varies throughout the year, it can be worth checking how different lenders calculate it before deciding how much to offer on a property.

Question 3

Do I Need an Agreement in Principle Before Viewing Houses?

Accepted Answer

You don’t need an Agreement in Principle (AIP) to start viewing properties, although having one ready can be useful when you’re serious about buying.

An AIP is a statement from a mortgage lender indicating how much they may be prepared to lend you, based on an initial assessment of your finances.

It’s not a guaranteed mortgage offer, as the lender will still need to complete their checks when you make a full application.

Some sellers and estate agents may ask if you have an AIP before arranging viewings or considering an offer.

Having one can show that you’ve already taken steps to establish your borrowing position.

If you’re ready to start looking for your first home, we can often arrange an AIP within 24 hours of your initial mortgage appointment.

Question 4

Can I Get a First-Time Buyer Mortgage if I'm Self-Employed?

Accepted Answer

Yes, you can get a first-time buyer mortgage if you’re self-employed. You don’t need to be employed by a company to qualify for a mortgage.

Lenders will usually want to see evidence of your earnings over the last one or two years, although their requirements can vary.

If you’re a sole trader, they’ll typically look at your taxable profits. If you’re a limited company director, they may consider your salary and dividends, with some lenders also looking at your share of company profits.

This can make a difference if you leave money in your business rather than taking everything as personal income.

Being newly self-employed can make things more restrictive, particularly if you haven’t completed your first year of trading or submitted a tax return.

We can review how your income is structured and look at lenders who are more suited to your circumstances.

You don’t necessarily need to wait until you’ve been trading for three years to apply for your first mortgage.

Question 5

Can My Parents Help Me Get My First Mortgage?

Accepted Answer

Yes, your parents can help you buy your first home, even if they aren’t in a position to give you money towards a deposit.

A gifted deposit is one of the most common ways parents help. This is money given towards your purchase that doesn’t need to be repaid.

Lenders will usually ask for a signed letter confirming the gift and where the funds have come from.

There are also mortgage arrangements that allow parents to support your application using their income or savings.

For example, a Joint Borrower Sole Proprietor mortgage allows a parent to contribute their income towards the affordability assessment without becoming a legal owner of the property.

They would still be responsible for the mortgage repayments alongside you. If your parents are considering helping, it’s worth looking at the different arrangements before deciding which one makes sense.

Their own finances, future plans and responsibilities will need to be considered too.

Question 6

Can I Get a First-Time Buyer Mortgage With Bad Credit?

Accepted Answer

Yes, getting a first-time buyer mortgage with bad credit may still be possible, depending on the issues recorded on your credit file and how recently they happened.

A missed payment from several years ago is likely to be viewed differently from a recent default or an outstanding County Court Judgement (CCJ).

Lenders will also consider the amounts involved, how you’ve managed your finances since and whether you have any outstanding debts.

You may find that your choice of lenders is more limited, particularly if you’ve experienced several credit problems or have only recently started rebuilding your credit history.

If you’re concerned about your credit record, checking it before applying can help you identify anything that needs attention.

We can look at the circumstances behind previous credit issues and establish which lenders may be willing to consider an application.

This can help you avoid making applications that are unlikely to be accepted.

Question 7

Can I Get a Mortgage With My Partner or a Friend?

Accepted Answer

Yes, you can apply for a joint mortgage with your partner, a friend or another person you intend to buy a property with.

With a joint application, the lender will assess both applicants’ incomes and financial commitments.

Combining your earnings could increase the amount you’re able to borrow, although existing debts and other expenses will still affect affordability.

Most joint mortgages involve two applicants, although certain lenders will consider more people.

One important point to understand is that joint borrowers are normally jointly and severally liable for the mortgage.

This means each person is responsible for the full mortgage debt, not simply their share of the monthly repayments.

If you’re buying with a friend or someone you’re not married to, it’s also worth speaking to a solicitor about how you’ll own the property and what happens if one of you wants to sell or move out.

Question 8

What Is the Difference Between a Fixed-Rate and Tracker Mortgage?

Accepted Answer

The main difference is how your mortgage interest rate behaves during the deal period.

With a fixed-rate mortgage, your interest rate stays the same for an agreed number of years, commonly two or five.

This means your monthly mortgage repayments remain consistent throughout that period, provided you don’t make changes to the mortgage.

A tracker mortgage has a variable interest rate that follows a specified benchmark, usually the Bank of England base rate, plus a set percentage.

If the base rate falls, your tracker mortgage rate will usually fall too. If it rises, your monthly repayments are likely to increase.

For first-time buyers, a fixed-rate mortgage can make budgeting easier because you know what your payments will be each month.

A tracker may be worth considering if you’re comfortable with your repayments changing, although you should also check for early repayment charges and any limits on how the rate can move.

The right choice comes down to the mortgage terms, overall cost and how comfortable you are with changes to your monthly payments.

Question 9

How Long Should I Fix My First Mortgage For?

Accepted Answer

Most first-time buyers choose a fixed-rate mortgage lasting two or five years, although other fixed-rate periods are available.

A two-year fixed rate gives you the opportunity to review your mortgage sooner. This could be useful if you expect your circumstances to change or want to reassess your options in a couple of years.

A five-year fixed rate provides greater certainty over your monthly repayments for a longer period. This can make budgeting easier when you’re settling into your first home and getting used to the additional costs of owning a property.

It’s also worth looking at the fees and restrictions attached to each deal. Fixed-rate mortgages often have early repayment charges if you leave the deal before it ends, which could be important if you’re planning to move again.

You don’t necessarily need to choose the shortest fixed period to get the lowest rate, either.

Mortgage pricing changes regularly, so it’s worth comparing the actual products available when you’re ready to apply.

Question 10

Can I Make an Offer on a House Before Getting a Mortgage?

Accepted Answer

Yes, you can make an offer on a property before you’ve formally applied for a mortgage.

In fact, most buyers won’t submit their full mortgage application until they’ve had an offer accepted.

You don’t need a confirmed mortgage offer at this stage, although it’s sensible to establish how much you may be able to borrow before committing to a purchase.

An Agreement in Principle can help with this. It provides an indication of the amount a lender may be prepared to offer, subject to further checks.

When making an offer, the seller or estate agent may ask about your deposit, mortgage arrangements and position as a buyer.

Being a first-time buyer can sometimes work in your favour because you don’t have another property to sell, meaning there’s no related sale holding up your purchase.

If your offer is accepted, you’ll normally need to provide evidence that you’re able to proceed. Having your finances organised in advance can make this part of the process easier.

Question 11

What Happens After My Offer on a House Is Accepted?

Accepted Answer

Once your offer has been accepted, you’ll be ready to start the formal mortgage application and legal work involved in buying the property.

Your mortgage advisor can help you select a suitable deal and submit your application to the lender. This usually involves providing evidence of your income, deposit and existing financial commitments.

The lender will assess your application and arrange a mortgage valuation to check that the property provides suitable security for the amount you’re borrowing.

You’ll also need to appoint a solicitor or conveyancer to deal with the legal side of the purchase. They’ll carry out property searches, review the contract and make enquiries about anything that needs clarification before you buy.

You may also want to arrange a property survey, as the lender’s valuation isn’t a detailed assessment of the property’s condition.

Once the lender has completed its checks and is satisfied with your application, it can issue a formal mortgage offer.

Your solicitor will then work towards exchanging contracts (or concluding missives in Scotland), and arranging completion. This is when the purchase is finalised and you receive the keys to your first home.

Question 12

Can I Get a Mortgage With No Credit History?

Accepted Answer

Yes, it’s possible to get a mortgage with little or no credit history, although some lenders may find it harder to assess your borrowing record.

This can be particularly relevant to younger first-time buyers who have never needed a credit card, personal loan or other form of borrowing.

Having no credit history isn’t the same as having bad credit. It simply means there may be limited information available about how you’ve managed credit agreements in the past.

Mortgage lenders will still look at your income, deposit, regular spending and overall financial position when assessing an application.

Being registered on the electoral roll, having accurate address information and keeping up with any existing financial commitments can also help ensure your credit file reflects your circumstances correctly.

You don’t need to take out unnecessary borrowing simply to build a credit history before applying for a mortgage.

If your credit file contains very little information, we can look at lenders who may be more comfortable assessing applicants with a limited borrowing record, rather than assuming you’ll need to wait before buying your first home.

Question 13

What Extra Costs Do First-Time Buyers Need to Budget For?

Accepted Answer

Alongside your deposit, there are several other costs to consider when buying your first home.

You’ll usually need to pay for a solicitor or conveyancer to handle the legal work, including property searches and transferring ownership into your name.

A property survey is another expense worth allowing for. This can help identify problems with the property before you commit to buying it, particularly if you’re purchasing an older home.

You may also have mortgage-related costs, such as a product fee, valuation fee or mortgage advice fee. Not every mortgage has these charges, so it’s worth checking what’s included when comparing deals.

Depending on the property price and where you’re buying, you could also need to pay Stamp Duty Land Tax in England, Land Transaction Tax in Wales or Land and Buildings Transaction Tax in Scotland.

Then there are the costs of moving, furnishing your home and arranging buildings insurance.

It’s sensible to keep some savings aside rather than putting everything towards your deposit. This gives you money available for unexpected expenses once you’ve moved in.

Question 14

What Documents Do I Need for a First-Time Buyer Mortgage?

Accepted Answer

You’ll normally need proof of your identity, income, deposit and financial circumstances when applying for your first mortgage.

For most employed applicants, lenders will ask for recent payslips and bank statements, usually covering the last three months.

You may also need to provide your latest P60 or employment contract, depending on the lender.

A valid passport or driving licence can be used to confirm your identity, while bank statements can help demonstrate where your deposit has come from.

If part of your deposit has been gifted by a family member, the lender will usually need a gifted deposit letter and may request further evidence about the person providing the money.

Self-employed applicants may need to provide tax calculations, tax year overviews or business accounts to evidence their earnings.

The exact documents required will depend on the lender and your circumstances, so it’s worth checking before submitting an application.

We can let you know what you’ll need to prepare and help you gather the relevant information before your mortgage application is submitted.

Question 15

What Happens if My First Mortgage Application Is Declined?

Accepted Answer

If your first mortgage application is declined, it doesn’t automatically mean you won’t be able to buy a home.

The first thing to establish is why the lender rejected your application. This could relate to affordability, credit history, employment circumstances or something identified during the lender’s checks.

In some cases, the property itself may be the issue, rather than your personal finances. For example, a lender might have concerns about the construction type or the valuation.

You should avoid submitting several new applications without understanding what went wrong, as repeated credit searches could make matters more difficult.

A declined application from one lender doesn’t necessarily mean another will reach the same decision. Lending requirements vary, particularly for applicants with less straightforward income or previous credit problems.

Our mortgage advisors can review the reason for the decline and establish if there’s a suitable alternative lender worth approaching.

Sometimes, it may be better to address an issue before applying again, such as correcting information on your credit file or reducing an existing financial commitment.

The important thing is understanding what prevented the original application from progressing before deciding what to do next.

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First Time Buyer Mortgages

How Much Can You Borrow as a First-Time Buyer?

How Much Deposit Do First-Time Buyers Need?

How Can We Help You Get Your First Mortgage?

Important information

First Time Buyer Video Playlist

How We Can Help First Time Buyers

What is a First-Time Buyer Mortgage?

What Deposit Do I Need For a Mortgage?

How Much Can I Borrow For a Mortgage?

What Credit Score Do I Need?

How to Make an Offer on a Property

When Should I Get a Mortgage in Principle?

What is a Shared Ownership Mortgage?

How Does the Lifetime ISA Work?

What is Stamp Duty Tax?

What is Freehold and Leasehold?

What Does Conveyancing Mean?

Do I Need Insurance For a Mortgage?

How Do Lenders Calculate What I Can Borrow?

How to Make an Offer on a Property

What is a First Time Buyer?

What Do Lenders Look For On My Bank Statements?

Do First Time Buyers Pay Stamp Duty?

Your Essential Mortgage Guide: Answering Your Top Questions

Still Have Questions?

Is It Difficult to Get a Mortgage as a First-Time Buyer?

How Do Mortgage Lenders Assess My Income?

Do I Need an Agreement in Principle Before Viewing Houses?

Can I Get a First-Time Buyer Mortgage if I'm Self-Employed?

Can My Parents Help Me Get My First Mortgage?

Can I Get a First-Time Buyer Mortgage With Bad Credit?

Can I Get a Mortgage With My Partner or a Friend?

What Is the Difference Between a Fixed-Rate and Tracker Mortgage?

How Long Should I Fix My First Mortgage For?

Can I Make an Offer on a House Before Getting a Mortgage?

What Happens After My Offer on a House Is Accepted?

Can I Get a Mortgage With No Credit History?

What Extra Costs Do First-Time Buyers Need to Budget For?

What Documents Do I Need for a First-Time Buyer Mortgage?

What Happens if My First Mortgage Application Is Declined?

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