If you’re looking to buy your first home and need some help and support, please contact us today for free expert advice.
We can walk you through the process of finding the best mortgage providers for first time buyers and explain how we can help you.
After we’ve talked, it’s up to you how we proceed and whether you want us to be your first-time buyer mortgage advisor.
Sett Mortgages can assist you whether you just want some information on how buying your first home works or you’re ready to take the next steps.
What is a first time buyer?
We frequently hear the questions, “What qualifies as a first-time buyer?” and “Who are first-time buyers?”
Although this appears to be a simple answer, it is not always a quick answer.
For many lenders, first-time buyer status varies, and there are specific rules you must meet to qualify as a “first time buyer” on specific schemes (e.g., Help to Buy).
A first-time buyer is officially defined as:
“A person buying a house or flat who has not previously owned a home and therefore has no property to sell.”
However, there are some things to consider, such as what if you’ve owned a home in another country? What if you received an inherited property? What if you’re buying as a couple but one of you has previously owned somewhere?
This is where things can get confusing if you don’t know which buyer status you have.
So, here are some of the most common scenarios for first-time buyers:
- You are a single person who has never owned a home anywhere in your life.
- You are a couple who have both never purchased a home before.
- You own or have owned commercial property but have never purchased a house or flat to be used as a home (consider if you purchased a shop with a flat attached that can be lived in – if it does, you cannot be a first-time buyer).
Can a first time buyer get a mortgage?
Yes, a first-time buyer can obtain a mortgage depending on factors such as deposit amount, income, and credit score.
The benefits of being a first time buyer
There are numerous advantages to being a first-time buyer, including:
- You are unlikely to be in a chain, making you more appealing and a “quick” option for sellers.
- You may be able to take advantage of schemes such as Help to Buy and Shared Ownership.
- Stamp Duty Land Tax is not required (on properties up to £300,000), which saves you a lot of money.
- You may be qualified for a wide range of mortgage options.
What deposit does a first time buyer need?
Typically, anyone purchasing a home should have at least a 10% deposit. For example, if the home you want to buy costs £250,000, you should have a deposit of £25,000. Check out our guide here to learn more about what deposit you need for a home and how to save for it.
How much can first time buyers borrow?
The amount you can borrow as a first-time buyer is entirely dependent on your personal circumstances. The following factors will influence how much you can borrow:
- The amount of your deposit
- Total household income
- Your credit rating
- Existing loans or credit card payments
How to find the best first time buyer mortgages
There are a huge selection of mortgage options for first time buyers and it can be overwhelming to start with.
Alongside the pressures of saving for a deposit and offering on a home, finding the best mortgages for first-time buyers can be difficult, especially with all of the jargon.
You can find a first-time mortgage and apply for it yourself, but it’s a big process that many people need someone to guide them through, which is why many people use a mortgage broker. You can learn more about what a mortgage broker is and how they can help you by clicking here.
Sett Mortgages is ready to walk you through the home-buying process and make it as simple as possible. We’ve worked with first-time buyers for years and are ready to assist you. We can assist you in finding the best lenders for first-time home buyers at the time, as well as in all other aspects of buying your first house, such as support with insurance policies.
Contact us today for expert help for first time buyers and to begin your property-buying journey.