The most important starting point for a ‘first time buyer mortgage’ is finding out how much you can borrow. Lending is based on your total income and is usually calculated using a multiple i.e. 3 ½ times single household income. Lending calculations for first time buyers differ from lender to lender and we recommend you seek advice from a professional mortgage adviser. We offer impartial advice from a team of mortgage professionals who can assess your individual circumstances and find the right mortgage for you.

What kind of mortgage is available to me?

A mortgage for first time buyers is available in 2 basic types, capital repayment and interest only. With a capital and repayment mortgage you pay back interest and an element of the outstanding balance. With an interest only mortgage, you pay back the interest element only over the term of the mortgage and then repay the amount borrowed in full at the end of the term by way of an associated investment policy. We do not give advice on investment products.

What choice of mortgage products are available to me?

In today's market place there is a great choice of first time buyer mortgages. They are available as fixed rate, discounted, tracker, capped and flexible deals with differing options to suit your needs.

There are often early repayment charges applicable if the loan is repaid within the product period.

What fees are involved?

As with any residential mortgage transaction there are a number of fees that you will need to budget for. An up front valuation fee will be required, the cost varying according to the estimated value of the property and it's location.

Some lenders will require arrangement and rate reservation fees, either to be paid up front or in some circumstances be added to the mortgage advance.

You will also need to consider solicitor's costs, buildings insurance, stamp duty fees and any service charges that will apply if the property is a flat.

What if I need help getting on the property ladder?

In today's market it is especially difficult for first time buyer to 'get their foot on the ladder' and buy their first home. There are a number of schemes available which are designed to help people in this situation:

Shared Home Ownership (SHO) schemes allow borrowers to buy a part of the property and rent the remaining share from the housing authority. This allows you to budget and perhaps save to purchase the whole of the property at a later date.

Key Workers Living Schemes - these schemes (which are run by local authorities) offer assistance with first time buyer house purchases for key workers in health, education and other public sector roles. To see if a scheme exists in your area you should contact the relevant local authority.

Guarantor mortgages - There are several options with this type of mortgage but basically the parent or other guarantor agree to take responsibility for all or part of the mortgage loan should you be unable to make the mortgage payments. This offers additional security to the mortgage lender and can be a way to obtain your first mortgage.