First Time Buyer Mortgages


to Lynton Mortgages,

where transparency and honesty guide our dedicated team of mortgage advisers. With access to a vast panel of lenders, we strive to save you time and offer unbiased advice tailored to your needs. Schedule an initial fee-free chat with us to explore your options, whether you’re a first-time buyer, looking to remortgage, or considering buy-to-let. Your financial well-being is our top priority. Contact us today for personalized mortgage solutions.

How is the mortgage process different for First Time Buyers?

The primary distinction for a first time buyer, compared to someone who’s moving home, is the simplified process. As a first time buyer, you won’t have to navigate the complexities of selling a current property or dealing with a property chain.

For home movers, selling a property and ensuring they have adequate equity for the new home can be a significant consideration. While the overall mortgage process remains largely unchanged, first time buyers often appeal to sellers as they aren’t part of a chain of properties.

What is an Agreement in Principle?

There’s a lot to grasp when delving into mortgages. While schools cover topics like the inner workings of a leaf and pythagoras’ theorem, they often skip over the intricacies of mortgages. As a first time buyer, you’re suddenly immersed in unfamiliar terminology and concepts.

Given that purchasing a property is likely the most significant investment you’ll make, any missteps can have hefty consequences. Thus, it’s crucial to gain some insight into the mortgage process as you navigate through it.

One essential term to understand is a dip (decision in principle, agreement in principle, or mortgage in principle) – all referring to pre-approval for your mortgage. Having a dip in place before house hunting can be immensely beneficial.

A dip involves a lender conducting a soft credit search and confirming the maximum amount they’re willing to lend you. Armed with this information, you’ll have a clear understanding of your budget when exploring properties.

Moreover, having a dip can give you an edge over other potential buyers. Picture this: you stumble upon your dream home. With your solicitor ready and your mortgage in principle secured, you’re prepared to make an offer. Meanwhile, other interested parties may not have taken these steps. In such a scenario, sellers are likely to favor the buyer who has everything organized upfront – giving you a better chance of securing your ideal property.

How much can a First Time Buyer borrow?

This varies from one lender to another. If you approach your bank directly, they typically have a fixed set of criteria dictating how much you can borrow. However, when you work with a broker like me, you gain access to a wide range of lenders, ensuring you find the loan that best suits your needs.

While most providers typically offer around 4.5 times your annual income, there are exceptions. Some lenders may consider extending this to 5.5 times, depending on factors such as your income level and the size of your deposit.

As a down-to-earth and honest adviser, my focus is on ensuring my clients secure the best possible deal without any hidden fees or surprises. With my national coverage as a mortgage broker, I’m committed to delivering personalized solutions tailored to your unique circumstances.

What deposit is needed for a First Time Buyer?

The size of your deposit plays a significant role in securing a mortgage. While the minimum requirement is typically 5% of the purchase price, having a larger deposit can greatly improve your chances of approval.

Lenders often offer better interest rates for every additional 5% of deposit you contribute, as it signifies lower risk on their part. As a down-to-earth and honest adviser, I prioritize helping my clients secure great deals with no hidden fees. With my national coverage as a mortgage broker, I ensure personalized solutions tailored to your needs.

Speak to an expert

Our team of down-to-earth mortgage advisers is dedicated to assisting you with purchasing or remortgaging your home. We prioritize protecting your property and lifestyle while saving you valuable time and effort. With a focus on honesty and transparency, I ensure my clients secure competitive deals tailored to their unique needs, all without any hidden fees. As a national mortgage broker with coverage across the country, I am committed to delivering personalized solutions that put your best interests first.

How do I know what my credit score is? How do I improve it?

The first step is to take a look at your credit score. We utilize a platform called checkmyfile* which consolidates information from four different credit agencies, providing a comprehensive overview of your credit profile as seen by lenders.

A simple yet effective method to boost your credit rating is by registering on the electoral roll. It’s essential to ensure you’re staying current with your direct debits and meeting all your monthly payments on time.

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What is the First Time Buyer ISA?

The first time buyer isa has transitioned into what is now known as a lifetime isa. These accounts were introduced to facilitate individuals in stepping onto the property ladder. Essentially, it serves as a savings fund where you can contribute money. When you’re prepared to purchase a home, you receive an additional 25% bonus from the government upon reaching the completion stage of your property transaction.

The maximum annual contribution limit for a lifetime isa is £4,000. This equates to a £1,000 bonus from the government for every year that you maximize your £4,000 allowance.

What other help is available for our First Time Buyers?

As many are aware, property prices have skyrocketed in recent times, making it challenging for many individuals to afford a home on their own.

One beneficial option is shared ownership, which serves as a bridge between renting and full ownership. With shared ownership, you can purchase a percentage share of a property, typically around 50%. As property values increase, you still benefit from equity appreciation and gradually pay off your mortgage. You’ll also pay rent to a housing association for the remaining share, with the opportunity to buy a larger share of the property over time.

Another common concern for first time buyers is meeting the borrowing requirements set by lenders. To address this, there’s a specific mortgage product known as joint borrower sole proprietor (jbsp).

In simple terms, jbsp allows you to own the property solely in your name while having a parent or family member join the mortgage with you. This arrangement enables you to leverage their income to increase the borrowing amount without them having ownership rights to the property.

What fees are involved when buying a house?

During our initial fee-free strategy calls, when you meet with me as your mortgage adviser, we’ll meticulously go over all the associated fees. While saving up for your deposit is crucial, it’s equally important to ensure you have enough funds to cover these additional expenses. Without proper financial planning, your property purchase could hit a roadblock.

One of the primary costs to consider is stamp duty, which applies to first time buyers if the property exceeds a certain value. This threshold tends to fluctuate frequently.

Additionally, there are survey fees, allowing you to opt for various valuation surveys on the property. You’ll also encounter expenses such as mortgage broker fees, solicitor fees, and the costs of conducting searches. These fees collectively contribute to the overall expenses associated with purchasing a property.

How can a mortgage broker help?

So much of this boils down to education. As a first time buyer, it can feel overwhelming – you’re not really given a manual on how any of this works. It’s tough to watch all the hard-earned money you’ve saved vanish into your deposit.

Having someone by your side to guide you through the process makes a world of difference. It ensures you’re fully informed at every step along the way. Much of the anxiety associated with buying your first home stems from the unknown. Having a knowledgeable ally to demystify the process is truly invaluable.


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