For most people their mortgage is their single largest monthly expenditure, which is why it is important to review to avoid paying over the odds. To help you understand how remortgaging works, we've put together a range of guides to help you. If you want to see if you can save money on your mortgage, our expert advisers are on hand to help 7 days a week. No need to make an appointment – our award-winning fee free mortgage advice is just a phone call away.
The subject of mortgages can feel complicated enough as it is. Trying to arrange one by yourself whilst juggling all your everyday demands can even feel rather daunting!
We also understand that there may be lots of questions you may have or things you feel you want to know more about.
We are here to help you and are happy to give you expert, fee-free advice at all stages of the journey – whether you’re remortgaging, buying a new home or have a rental property.
And, in the meantime, if you’d rather do a little self-learning, or there’s a question we can answer right here, we’ve also put together a range of mortgage guides for you to read if you have a spare 10 minutes. If there’s something you need to know which we haven’t covered in our guides, then just let us know! We’ll either create a new guide for you or help you direct via email or phone.
Finding the right mortgage as a first time buyer
Getting onto the property ladder can seem daunting unless you have the right advice and guidance.
You’ll need to work out if you’re eligible for a mortgage and how much you can borrow, as well as which type of mortgage to go for and how much it’s going to cost you.
The good news is that it’s easy to get started with your first mortgage with Ever North Mortgages Ltd’s online Mortgage Finder. All you need to do is enter your details, including how much you want to borrow and how big a deposit you’ve got to put down and the Mortgage Finder will show you all the deals you are likely to qualify for.
Finding the right mortgage as a first time buyer
Getting onto the property ladder can seem daunting unless you have the right advice and guidance.
You’ll need to work out if you’re eligible for a mortgage and how much you can borrow, as well as which type of mortgage to go for and how much it’s going to cost you.
The good news is that it’s easy to get started with your first mortgage with Ever North Mortgages Ltd’s online Mortgage Finder. All you need to do is enter your details, including how much you want to borrow and how big a deposit you’ve got to put down and the Mortgage Finder will show you all the deals you are likely to qualify for.
In this guide
In this guide
Why apply for your first mortgage with Ever North Mortgages Ltd?
Applying for your first mortgage with Ever North Mortgages Ltd can help save you time, money and hassle.
Our online Mortgage Finder allows you to start your mortgage journey on your desktop or mobile device, either at home or on the go.
- You’ll need to provide information such as the purchase price of the property you’re considering buying, how much you want to borrow, and how long you want to repay your mortgage over.
- The Mortgage Finder will give you a list of personalised results in real time, which will show you all the deals you might be eligible for.
- Once you’ve sent us your completed Mortgage Finder, you’ll get your ‘Decision in Principle’ by email. If we need to check anything, one of our expert advisers will give you a call to confirm your details and fill in any blanks, before sending you a Decision in Principle certificate. This will give you an indication of how much you might be able to borrow before you submit a mortgage application and receive a formal mortgage offer.
- Our advice won’t cost you a penny. Like all other brokers, we receive a payment from the lender when the mortgage completes, but we choose not to charge our customers a fee on top of this. You’ll pay no more applying through us than you would going directly to the lender on the same deal.
Lending criteria & eligibility
You must be aged at least 18 to apply for a mortgage as a first time buyer.
When you submit your application, lenders will look closely at how much you earn. They will also want to know about all your outgoings, such as any loan or credit card repayments, and the amount you spend on things like travel, food and utilities. If you can reduce unnecessary outgoings before you make an application, it could boost your chances of being accepted.
They will check your credit history too, which shows how you’ve managed debts in the past. If you’ve been late with or have missed any payments this might have affected your credit score and may mean your mortgage application is refused. You can find out about this in our guide How does your credit score affect your ability to get a mortgage?
We offer the best mortgage options for first time buyers
There are lots of different mortgage options to choose from, so it’s worth weighing up the pros and cons of each before deciding which one to go for.
- Fixed rate mortgages. As the name suggests, with a fixed rate mortgage your interest rate won’t change for the term of the deal. You can typically lock into a fixed rate mortgage for anything between two and ten years, although sometimes even longer deals are available. Fixed rate mortgages usually appeal to first time buyers who want peace of mind that their monthly payments won’t change, whatever happens to interest rates.
- Tracker mortgages. Tracker mortgages are variable rate mortgages and usually track the Bank of England base rate, plus a set percentage. The main advantage of a tracker deal is that when rates are falling you will benefit. However, when rates start to rise, so will the cost of your payments.
- Discounted mortgages: Discounted mortgages are also variable rate deals, typically offering a discount from the lender’s Standard Variable Rate (SVR). This rate can change over time if the SVR goes up or down.
- Capped rate mortgages. Capped deals are again variable rate mortgages, so the rate and your payments can move up or down over time, but there is a cap or ceiling which the rate cannot exceed. This can provide peace of mind that your monthly payments won’t increase beyond a certain point during the term of the deal, even if rates keep rising.
- Parental support mortgages. Several lenders offer first time buyer mortgages which enable parents to use their savings to help their children get onto the property ladder. Parents usually commit to putting a percentage of the first time buyer’s property value into a savings account held with the lender for a few years. Other lenders may allow parents to borrow extra on their mortgage to gift to children as a deposit.
Find out more about the various kinds of mortgage you can choose from in our guide Different types of mortgage explained.
Choosing your first mortgage
Before you choose your first mortgage, there are a few initial steps you need to take.
- Find out how much you can borrow. The amount you’ll be able to borrow will depend on your income and outgoings, and how much deposit you have to put down. Our How much can I borrow? calculator can give you a quick idea of the likely mortgage amount you can borrow.
- Work out how big a deposit you can afford to put down. You’ll usually need to save a deposit of at least 5% of the property value. However, if you’re able to save more than this, you’ll have access to a wider range of mortgages at more competitive rates, as lenders will consider you a lower risk.
- Factor in other costs. Remember that as well as saving a deposit, you’ll also need to save up for the other costs of buying a home, such as legal fees and moving costs. Fortunately, when it comes to Stamp Duty, there is help available for most first time buyers in England, Northern Ireland and Scotland in the form of first time buyer relief. You can read more about this here.
- Understand the key differences between the different mortgage types. It’s worth getting to grips with how different types of mortgage work so that you can pick the right deal to suit your needs. For example, if budgeting certainty is a top priority, you might decide a fixed rate mortgage is best for you, but if you don’t mind your monthly payments moving up or down over time, you might prefer a variable rate deal.
- Calculate how much your repayments will be each month. Your mortgage needs to be affordable, so you’ll need to make sure your monthly payments aren’t going to be too much of a financial stretch. The longer your mortgage term, the less your monthly payments will cost, but the more interest you’ll end up paying back overall, and vice versa. Use our How much will my mortgage cost? calculator to help you find out the cost of your mortgage.
Remember too that if you’re struggling to get onto the property ladder, there are Government schemes available that may help.
Start your online search for a first time buyer mortgage
Hopefully you’ll now have a clearer idea of which type of mortgage you want and the sort of information lenders will want to see when you apply for a mortgage.
Whether you want a fixed or variable deal, our online Mortgage Finder searches over 90 lenders’ deals on your behalf, which means finding and applying for your first time buyer mortgage needn’t involve filling out lots of mortgage enquiries for different mortgage providers.
Our experts will advise you on the best deal for you, and once you’ve applied for your mortgage, you can then track your application online 24/7 so you know exactly how it’s progressing.
Begin your online mortgage journey using our Mortgage Finder.
First Time Buyer FAQs
A First time buyer mortgages are designed to help those who are trying to get onto the property ladder. They might be available to people with only a small deposit (typically 5% of the property value) to put down, or they might offer cashback to help cover costs.
Find out more about first time buyer mortgages
A The loan to value ratio is a term used by lenders to express how big a mortgage they are prepared to offer you in relation to the value of the property you are buying. For example, if a lender offers a first time buyer mortgage with a 95% LTV, this means they will lend you up to 95% of the property value.
A 100% mortgages used to be more widely available to first time buyers, but today most lenders now require a minimum deposit of at least 5%.
There are deals available which don’t require first time buyers to have a deposit, but parents or other family members must usually agree to put down a percentage of the purchase price of the property into a savings account, or provide other security for the mortgage.
A A 95% mortgage allows you to borrow 95% of the property value.
You therefore need to save a 5% deposit to qualify. For example, if you’re buying a property costing £200,000, you’ll have to put down a deposit of at least £10,000.
A The most common costs associated with getting a first mortgage are:
- Mortgage arrangement fees (sometimes charged by lenders )
- Legal fees
- Valuation fees
However, sometimes lenders offer to cover some of these costs, so depending on which deal you choose, you may not have to pay all of these. Read our guide to the costs of buying a house to find out more.
A There are several Government schemes available to help first time buyers get onto the property ladder. The Help to Buy equity loan scheme in England, for example, enables first time buyers to put down a 5% deposit, and the Government will then lend a further 20% (40% in London) of the property price interest-free for the first five years.
There are also schemes to help first time buyers save up a deposit, such as the Lifetime ISA, with the Government topping up contributions made into these accounts by 25%. Find out more about how these schemes work in our Guide to government schemes for first time buyers.
A A minimum 5% deposit is usually needed to buy your first home. However, if you can save more than this, you’ll have access to a wider range of mortgages at more competitive rates. Find out more about deposits in our guide How much deposit do I need to buy a house?
A With a repayment mortgage, you pay back some of the capital you owe as well as interest each month. An interest only mortgage, as the name suggests, involves only paying back the interest. The capital must be repaid at the end of the mortgage term, so it’s essential to have a clear plan as to how you’ll save up enough to do this.
A Finding the right mortgage for you can be challenging, especially with so many different deals to choose from. A mortgage broker can advise you on the available options and help you find the best deal based on your individual circumstances. They’ll also help you through the application process, ensuring everything runs smoothly. Learn more in our guide What does a mortgage broker do?
