First Time Buyer Mortgage Guide

Compare mortgage deals for first time buyers

First Time Buyer 2 Year Fixed Rate - 5% Deposit »NatWest Mortgages

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4.10%Reverts to 3.99% after 2 years


Overall Cost for Comparison 4.10% APRC. This is the cost of the mortgage over the full term. Early redemption charges may apply.

Compare latest first time buyer mortgages - use our mortgage tables below to see a selection of market leading mortgage deals:

Provider

Type

Initial Interest Rate

Initial Term

Max LTV*Product Fee 
Fixed

2.56%

Reverts to 3.99%

2

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term.
Fixed

2.49%

Reverts to 4.79%

3

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.20% APRC. This is the cost of the mortgage over the full term.
Fixed

2.91%

Reverts to 3.99%

2

Years

90%

NoMore Info >
£250 Cashback. Early redemption charges may apply. Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term.
Fixed

3.99%

Reverts to 3.99%

5

Years

90%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.10% APRC. This is the cost of the mortgage over the full term.
Fixed

4.25%

Reverts to 4.79%

2

Years

95%

NoMore Info >
£300 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.70% APRC. This is the cost of the mortgage over the full term.
Fixed

4.25%

Reverts to 4.79%

2

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.70% APRC. This is the cost of the mortgage over the full term.
Fixed

4.34%

Reverts to 4.79%

3

Years

95%

NoMore Info >
£300 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.70% APRC. This is the cost of the mortgage over the full term.
Fixed

4.10%

Reverts to 3.99%

2

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.10% APRC. This is the cost of the mortgage over the full term.
Fixed

4.10%

Reverts to 3.99%

2

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.10% APRC. This is the cost of the mortgage over the full term.
Fixed

4.54%

Reverts to 4.79%

3

Years

95%

NoMore Info >
£300 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.70% APRC. This is the cost of the mortgage over the full term.
Fixed

4.55

Reverts to 3.99%

5

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.
Fixed

4.55%

Reverts to 3.99%

5

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.
Fixed

1.94%

Reverts to 3.69%

2

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.50% APRC. This is the cost of the mortgage over the full term.
Fixed

2.25%

Reverts to 4.79%

2

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.
Fixed

2.56%

Reverts to 3.99%

2

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term.
Fixed

2.49%

Reverts to 4.79%

3

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.20% APRC. This is the cost of the mortgage over the full term.
Fixed

2.91%

Reverts to 3.99%

2

Years

90%

NoMore Info >
£250 Cashback. Early redemption charges may apply. Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term.
Fixed

2.91%

Reverts to 3.99%

5

Years

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.70% APRC. This is the cost of the mortgage over the full term.
Fixed

3.72%

Reverts to 3.99%

5

Years

90%

NoMore Info >
£250 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.00% APRC. This is the cost of the mortgage over the full term.
Fixed

3.72%

Reverts to 3.99%

5

Years

90%

NoMore Info >
£250 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.00% APRC. This is the cost of the mortgage over the full term.

Representative Example:


A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.


The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).


In this example the overall cost for comparison is 3.7% APRC representative.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Choosing your first mortgage

It is no secret that finding a mortgage for the first time can be a tough ask for first time buyers. It is important to remember that generally speaking, lenders will be risk averse, and are much less likely to lend to customers who they feel will be unlikely to repay their loan.


Here are some examples of common factors that may affect your chances of getting a good deal on your mortgage as a first time buyer:

 

  • Credit history is something that is often closely scrutinised by lenders and demonstrating a good record may significantly lower the cost of your mortgage
  • Demonstrating a reliable source of income may also be crucial, companies may be much more likely to offer a good deal to someone who has been gainfully employed for a reasonable length of time
  • Generally speaking, providers will offer better interest rate deals to customers who can afford a larger deposit. So as a first time buyer, it may be well worth saving a little extra before committing to a long term mortgage
  • In some cases, having one or more different bank accounts with a provider help you get a better deal with them


Even with these factors counting in your favour, getting a mortgage as a first time buyer can still be prohibitively expensive for many people. Luckily however, there may be several other options available that will make this process easier.


Single or joint buyers may wish to consider getting a shared mortgage with a number of people in order to reduce their burden financially. However, it should be remembered that these types of agreements may not typically be offered by all lenders.


Repayment Methods
Most mortgages will generally be offered to customers in one of two ways, as either a repayment or interest only agreement. The following is a brief explanation of each:

 

  • Repayment mortgages are often seen as most reliable and secure type of repayment plan, the customer will gradually pay off the borrowed amount with interest included until they own the property outright. These agreements are more expensive initially, but may often be cheaper in the long run compared with an interest only arrangement.
  • Interest only arrangements may be considerably cheaper in the short term, as they allow customers to only repay the interest on their loan on a monthly basis, allowing first time buyers to spend more or other important costs that are associated with setting up their home. However, customers must repay the loan in full at the end of the mortgage, after having hopefully invested their money in a suitable investment vehicle.


Interest Rate Deals
There are several different types of interest rate deal that may be offered customers, however it is important carefully assess the pros and cons of the different offer that are available.


Fixed Rate deals are considered to be one of the most popular types of agreement available. Although their interest rates are often slightly higher compared to other policies, these rates are guaranteed to remain the same for a fixed period, affording customers some considerable security.


Tracker Mortgages have their interest rates adjusted according to the Bank of England’s base rate and not the provider. Although they are generally considered to be quite reliable, it should be remembered that these rates may increase or decrease depending on the current economic climate.


Variable Interest Rate deals are subject to change according to the policy of the lender, although their starting rates may often be quite low compared to many other types of interest rate deal.


Offset Mortgages are best suited for customers with a significant amount of money saved up, as this money can be linked to the mortgage to reduce the cost of interest repayments. However, the starting rates for this type of mortgage are often high compared to other types of interest rate deal.


When searching for an appropriate mortgage, it is strongly recommended to shop around as much as possible, finding a competitively priced mortgage is best achieved by comparing offers from different providers whenever possible for the best deal.

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The above mortgage products highlighted on this website are available directly through lenders who will be able to provide further information about the product you are interested in. If you are unsure about what mortgage product is suitable for you, we suggest you speak to an independent mortgage broker