First Time Buyers Guide On How To Get A Mortgage

First Time Buyers Guide On How To Get A Mortgage

Getting a mortgage can be an extremely scary, stressful and expensive thing for first time buyers. This is understandable seeing as though the housing market has made such a bad name for itself when it comes to first time buying. Although the economy isn’t out of the woods just yet, things are indeed looking up. More mortgages are available to those with a 10% deposit, and the mortgage market is generally beginning to look much healthier than in previous years.


If you are a first time buyer and need some mortgage information, then I have put this little guide together to help make sure you are fully in the know about the process of getting a mortgage! That way you have the best possible chance of getting a great mortgage rate whilst saving yourself a large amount of money in the process!

There are a few things to consider before you begin looking into taking out your mortgage. Are your finances under control? How much can you afford for a deposit? and what will the overall cost be? These are all good places to start.  

Firstly, run a simple credit check on yourself. The better your credit rating and the bigger your deposit, the more options you will have. New rules now mean that lenders have to carry out stricter checks on borrowers, therefore by doing a credit check you can see what the lenders will be looking at when they check you.

Another thing to be aware of is the Mortgage Market Review, set up by the Financial Conduct Authority to ensure thorough research is conducted into what you have coming in each month and what you will be spending. So expect to be quizzed in detail about your habitual spending on everyday things such as your energy bills, childcare, food shopping, and even phone contracts and gym memberships.

By far the biggest factor when it comes to your mortgage rate is the size of your deposit and how big of the property’s value you can afford to put down. Before you even start to look at mortgages you should start saving, generally between 5 – 20%  of the cost of your home. Although the benchmark figure is 25%, and those who can provide that amount will be getting near enough the best rates, however if you can’t afford that hefty amount then don’t panic. Things are now looking up for those of you with only 5 percent deposit and it is now possible for you to get a mortgage with a smaller amount.


How To Get The Right Mortgage Deal For You

Finding a mortgage deal thats right for you can be a tricky process as there are so many deals to choose from and there are so many factors to consider. This is why it could be a good idea to seek advice from the expert mortgage brokers. They can help you look beyond the interest rate and properly compare the overall cost of the mortgage and they may also have exclusive access to deals including lender direct deals. I would definitely recommend getting a broker involved as they can also help out with the paperwork and speed up the process. Many brokers don’t charge a fee and are instead paid by commission from the lender which would be ideal for many of you.

The next big question you are faced with is should you go with a fixed rate mortgage or a variable rate. Fixed rates will not change for a certain period of time, whereas variable rates can change at any time.  


Standard Variable Rate Mortgage – This is one of the most common types of mortgages and can adjust its interest rates according to the conditions in the market. The rate can move up and down at any point.

Fixed-Rate Mortgage – The name suggests that this type of mortgage is pre determined. However, the rate is only fixed for a certain period of time and will eventually transform into a variable rate mortgage.

Tracker Mortgage – This type of mortgage is very similar to variable rate mortgages because they follow the base rates of The Bank Of England. As soon as the banks interest rate rises, your monthly rate increases as well or vice versa.

Discounted Mortgage – This type of mortgage offers you a discount on your variable rate for a fixed amount of time. However, your monthly rate could still rise or fall depending on how your lender charges the rate.

Every type of mortgage has its advantages and disadvantages. Which one to choose depends on your personal preferences and financial condition. It’s unsurprising that most first time buyers choose the security of a fixed rate. However if you do decide to go for the variable then I’d suggest opting for the tracker option as these can not be changed at the hands of the lender!

Once you have chosen your mortgage and went through the rather lengthy application process, you should receive your mortgage offer within two to four weeks!

I hope this guide has been useful to some of you and happy house hunting!

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