At The Mortgage Pod, we’re here to take the stress out of getting a first-time buyer mortgage so that you can focus on the exciting stuff ahead, such as choosing the new carpets! Welcome to the world of mortgages! You’ve no doubt done a bit of research and realised that there are loads of first-time buyer mortgages on the market. There are various types of products, different valuation fees, product fees and a wide range of interest rates to get your head around.
But don’t let the bewildering number of options and industry waffle put you off! The friendly team here at The Mortgage Pod are here to make the whole process clearer, simpler and more enjoyable – not to mention easier on your bank balance!
We are The Mortgage Pod, mortgage brokers for first-time buyers
The Mortgage Pod is your trusted local mortgage broker in Portsmouth. We specialise in helping first-time buyers achieve their dream of home ownership. We’ve been there and experienced the excitement and challenges that come with buying your first home. Our mission is to offer friendly guidance and support to ensure your first property buying experience is as stress-free as possible – dare we say, even enjoyable!
We will help you understand how much you could borrow, what your expected monthly payments might look like and take care of your agreement in principle. We’ll stay by your side throughout the entire home-buying journey and ensure you secure the best mortgage deal for your circumstances.
We’ll even celebrate the big milestones with you, like receiving your mortgage offer, surviving the mortgage completion process and getting your hands on your new keys!
To begin a consultation, please drop us a line, and we’ll be in touch soon.
What are first-time buyer mortgages?
First-time buyer mortgages are specifically designed for borrowers looking to buy their first home. These mortgages often come with favourable terms and incentives and are tailored to meet the unique needs of first-time buyers.
First-time buyer mortgages can take the form of a repayment mortgage or an interest-only mortgage. A repayment mortgage is where you make regular monthly payments that cover both the loan amount and the interest, gradually paying off the mortgage over the loan term. Not to state the obvious, but an interest-only mortgage means that you only pay the interest on the loan each month. You then pay off the loan amount at the end of the mortgage term.
There are many different types, options and rates available, and figuring them all out on your own can be a headache.
Should I take a 25 or a 40-year mortgage term?
Should I take a 2 or 5-year fixed mortgage deal?
What are the risks of going on a variable rate?
The list of questions is endless. But you don’t know what you don’t know! Fear not, you’re certainly not alone, our team will help you understand your choices and provide advice on the most suitable option based on your personal circumstances.
Who qualifies as a first-time buyer?
Generally, a first-time buyer is someone who has never owned a residential property or had a mortgage before. It sounds clear-cut, but, like most things in finance, there are some variations, and eligibility criteria will vary depending on the lender. A mortgage adviser from The Mortgage Pod can help you determine whether you meet the criteria for being a first-time buyer and what options are available to you.
Talk to a mortgage expert today
Our first-time buyer mortgage service
At The Mortgage Pod, our dedicated team of mortgage brokers for first-time buyers will start by getting a thorough understanding of your goals and circumstances before working out how much you could borrow and finding you the best mortgage deal available for your circumstances. Not only that, we’ll be your trusted guide and support you throughout your entire home-buying journey.
We’ll start by helping you to compare rates and options using a specific mortgage calculator to ensure that you are comfortable with the potential monthly payment. Next up, we’ll produce an agreement in principle certificate, i.e. an initial assessment of your income, expenses, and credit history, which we’ll use to approach various lenders on your behalf.
Then we’ll get on with the job of finding the most attractive first-time buyer mortgage deals for your circumstances. Once we get the green light from you, we’ll take care of the mortgage application paperwork to ensure a smooth, positive and stress-free experience.
First-time buyers – individual mortgage
First-time buyers are not just loved-up couples! If you are in the fortunate position to buy a home on your own, we can help you to secure an individual first-time buyer’s mortgage. We’ll explore various lenders, assess your affordability with a mortgage calculator and secure a mortgage to help you achieve your goals.
First-time buyers – joint mortgage
You will need a mortgage in joint names if you’re buying a property with a partner, family member, or even a friend. Buying as a duo means that you can combine your incomes and increase your borrowing capacity, as well as increase how much deposit you can put down, opening up the range of house prices available to you.
We will assist you in understanding the detail of joint mortgages, compare monthly payments and go about finding you the best deal available.
How can The Mortgage Pod help me, as a First-Time Buyer
Taking out your first mortgage is a significant life decision, and we understand that it can be nerve-wracking. But at The Mortgage Pod, we want you to enjoy the experience, which is why we are committed to supporting you throughout your entire home-buying journey.
Whether you’re ready to go and need an agreement in principle right away or if you are just starting to research your options, we’re here for you. No matter how simple or complex your situation is, we will work hard to find you the right deal.
As independent brokers, we’re not tied to any particular mortgage provider. We work with a large variety of high-street banks, specialist lenders, and building societies, so our only motivation is to find the right deal for you.
Communication is essential in the home-buying process, so we ensure we’re always available to you. Just drop us a message, and we’ll be there day or night to answer your questions. We’ll always offer clear and transparent advice without stuffiness or the unnecessary jargon.
You can rest assured that we won’t disappear as soon as your mortgage application has been submitted. We’ll be there to help every step of the way and pop a virtual cork with you when you finally receive your keys!
What are the costs involved in buying a property?
When it comes to buying your first property, it’s not just the deposit you need to fork out for. It’s important to consider the additional costs involved, such as:
- Legal fees: You’ll need a solicitor and/or surveyor to conduct searches, prepare contracts, and ensure a secure transfer of ownership.
- Stamp duty: Depending on the property purchase price, you may also have to pay Stamp Duty Land Transaction tax.
- Product fees: Mortgage products often come with arrangement fees ranging from a couple of hundred to several thousands of pounds. We always recommend the most cost-effective mortgage product over the initial benefit.
- Valuation or survey: You need a valuation or survey to assess the property’s condition, identify potential issues, and determine its accurate market value before going ahead. This allows you to negotiate a fair price.
What else should I think about as a first-time buyer?
As a homeowner and borrower, you need to ensure your home, belongings and debt is protected should something unpredictable happen. The Mortgage Pod will help you find the right protection for the ‘what ifs?’, such as:
- Home insurance (or Buildings Insurance). Home insurance is a condition of your mortgage offer to protect against things like fire and flood damage.
- Life insurance – Could your loved ones keep up with mortgage payments if something happens to you? Critical illness insurance policies offer valuable financial protection, and taking one out is highly recommended.
- Income protection. This type of insurance is a valuable financial safety net and provides a regular income if you are unable to work due to illness, injury, or disability.
How much deposit do first-time buyers need to buy a property?
Most first-time buyers need a deposit to buy a home, whether it’s from their own savings account or via a gift. Deposits are calculated as a percentage and affect the loan-to-value ratio (LTV) of your new mortgage. This is simply the percentage of the property’s value that you borrow. Generally, the more deposit you have, the lower the interest rate. The best mortgage products can be found with a deposit of 40% or more, getting you under the 60% LTV bracket.
Typically, the minimum deposit you need to buy a property is 5% of the property value. However, in certain scenarios, such as a shared ownership purchase or the Track Record Mortgage scheme, you may be eligible to buy without any deposit at all.
What is a good loan-to-value (LTV) ratio for first-time buyers?
Saving a deposit is tougher than ever, but the more you can save, the lower the mortgage rates and, therefore, the lower the mortgage payments you can expect. There are options to get on the property ladder without a deposit using a Track Record Mortgage, a type of no-deposit mortgage scheme, but generally, you need a minimum of a 5% deposit to buy your first property. To get a 95% mortgage, you need a good credit rating (which you can check here), but you can expect higher monthly repayments.
Can I use a personal loan to cover my house deposit?
Yes, subject to your credit rating, it is possible to use a personal loan for your deposit as a first-time buyer. It is important to note that any monthly loan repayments will need to be considered when assessing your affordability and may affect the mortgage amount available to you. Also, not every lender will accept a loan as a deposit, so it’s important to get the advice of a professional mortgage adviser like the team at The Mortgage Pod.
Does The Mortgage Pod work with first-time buyer schemes?
Yes, at The Mortgage Pod, we’re all for getting more people on the property ladder and have a thorough understanding of the various schemes available. The Help to Buy equity loan scheme is now closed, but the government’s mortgage guarantee scheme is extended to December 2023. We can help you determine your eligibility and submit your application for the best chance of success.