First Time Buyer Mortgage Rates

As a first time buyer in the UK, you are eligible for first-time mortgage rates. To be considered a first-time buyer, the following must apply:

  • You have never owned property.
  • You have never inherited property.

You are not eligible for the following reasons:

  • You have owned commercial property with included living space.
  • You are looking for a property with someone to whom the above criteria apply.

If you are eligible, please read the following article to discover what you need to know about mortgage rates for a first-time buyer and how you can apply via Airborne Mortgage Solutions.

The Difference with a First Time Mortgage

As a first-time buyer, there are offers available to help you get on the property ladder. First, you might be eligible for a property loan with a 5% deposit. Also, you could take advantage of the First Homes scheme, which can reduce your cost by up to 30% of the home’s market value.

How Your First Time Mortgage is Calculated

Mortgage calculators will give you an estimate of how much you can borrow. Multiple criteria are used, such as disposable income, employment situation and affordability. You can provide rough estimates if you cannot remember details, and it won’t affect your credit score.

Your mortgage is the total monthly mortgage payment against the principal loan amount. Your lender will provide the annual repayment rate, which you need to divide by 12 to see how much you need to pay each month. They will also provide you with your total number of mortgage payments.

  • Other factors include:
  • Any debts you may have
  • Your credit score
  • Work history 
  • The condition of the property

The Different Options Available

There are numerous mortgage options available, including:

  • Help To Buy: a range of UK government-backed schemes for help with first-time purchases.
  • Variable Rate: fluctuating interest rates that could be cheaper or more expensive.
  • Fixed-Rate: a set interest rate that doesn’t change over a fixed period.
  • Tracker: owed interest is determined by the Bank of England interest rates.
  • Offset: you can deduct interest from the total based on your savings.
first time buyer

Competitive Mortgage Rates

Interest rates are typically determined by world and market events. However, some lenders and brokers are more competitive. There are many reasons for this, but the most common include attracting new customers, business overheads and closing costs. At Airborne, we also offer optional insurance options to protect your investment should the worst happen.

Mortgage rates for a first-time buyer come with many excellent options. Yet you are also limited based on your situation.

Pros

  • Generous schemes are available.
  • Lenders are willing to accept a lower deposit.
  • Competition works in your favour.

Cons

  • Your total loan may be restricted.
  • Available options would be limited to a specific period.
  • There could be a considerable increase in costs.

Key Considerations

As a first time buyer, you should consider your deposit. The more you can put down, the more equity you will have in your home. You can then negotiate a better interest rate which equates to lower monthly payments towards your mortgage. 

5 Things You Need to be Aware Of

  1. Being self-employed will affect eligibility post-Covid.
  2. An application will impact your Credit Score.
  3. Your deposit will determine your options.
  4. World events determine interest rates. Time it right.
  5. A mortgage advisor can help get your application in order.

Please Contact Us

For more information on first-time buyer mortgages, consultation and how you can apply, please get in touch with Airborne Mortgage Solutions