First Time Buyers Mortgage Advice: A Clear Guide for New Homeowners

Buying your first home is a huge milestone, but it can feel completely overwhelming – especially when you start looking into mortgages. The paperwork, the jargon, the decisions… it’s no surprise that many first-time buyers feel stuck before they even get started.

That’s where solid, straightforward first time buyers mortgage advice can make a big difference. Whether you’re unsure how much you can borrow, what deposit you need, or which lender to choose, this guide is here to help.

At Chatsworth Mortgage Group, we understand how confusing it can all seem. This guide will walk you through every stage of the process in plain English, offering practical tips and real-world context so you can make informed choices with confidence.

We’ll explain what a first time buyer mortgage actually is, how to find the right deal for your needs, and how to avoid common mistakes along the way. From saving your deposit to understanding mortgage types, this is your no-nonsense companion to getting on the property ladder.

If you’re just starting out, this is everything you need to know.

What Is a First Time Buyer Mortgage?

Let’s start with the basics. A first time buyer is someone who has never owned a home before anywhere in the world. If you’re buying a property for the first time and plan to live in it, you’re classed as a first time buyer.

A first time buyer mortgage is a home loan specifically tailored for people in this position. While the core structure of the loan is similar to any other mortgage, there are often a few helpful differences. Some lenders offer lower deposit options, more flexible terms, or cashback incentives to make things more accessible for new buyers.

Most lenders will expect you to put down a deposit of at least 5 to 10 percent. They’ll also look at your income, credit history, current debts, and employment status to decide how much they’re willing to lend you. This is where planning ahead really matters. Getting your finances in good shape early can make a big difference to the offers you receive.

Many people don’t realise how varied mortgage deals can be. Rates, fees, and terms all differ, and the smallest details can affect how much you’ll repay overall.

That’s why first time buyer mortgage tips from a professional can really help. If you understand the key requirements and what lenders are looking for, you’ll be in a stronger position when it comes to buying your first home mortgage.

How Much Can You Borrow?

One of the first questions most first-time buyers ask is, “How much can I borrow?” The answer depends on several things, and each lender will assess your situation slightly differently.

They’ll start by looking at your income, including your salary and any other sources of regular money, such as bonuses or benefits. Next, they’ll consider your existing debts – credit cards, car finance, or student loans all count. The cleaner your financial background, the better.

Your credit score also plays a big part. A good score tells lenders you’re reliable with money, and that lowers their risk. If your score isn’t perfect, don’t panic. There are still options available, but it’s worth taking steps to improve it before you apply.

Lenders will also carry out affordability checks. This is where they look at your regular spending – things like rent, bills, childcare, and subscriptions – to make sure you can realistically afford mortgage repayments alongside everyday life.

To boost your borrowing potential, consider paying down debts, cutting unnecessary expenses, and avoiding new credit applications in the months before you apply.

This is where mortgage brokers can be a huge help. At Chatsworth Mortgage Group, we understand how different lenders assess applications and can guide you towards the most suitable options based on your circumstances.

If you’re unsure how much you could borrow, it’s worth speaking to an expert early on.

Saving for a Deposit and Other Costs

Saving for a deposit is usually the biggest hurdle for first time buyers. In most cases, you’ll need at least 5% of the property’s value as a minimum. For example, if the home you want costs £200,000, you’ll need a £10,000 deposit.

This is where the term LTV (loan-to-value) comes in. It’s the ratio of how much you borrow compared to the value of the property. If you put down a 10 percent deposit, your LTV is 90 percent. Generally, the lower your LTV, the better the mortgage deal you’ll be offered.

But the deposit isn’t the only cost. You’ll also need to budget for:

• Legal fees (conveyancing)

• Stamp duty (often discounted or exempt for first time buyers)

• Survey costs

• Mortgage arrangement fees

• Moving costs and furnishings

All of these can add up, so it’s important to plan ahead and know what’s coming. It’s not just about saving for the deposit – it’s about having enough left over to complete the process and settle in comfortably.

Some buyers find it helpful to use a separate savings account for their deposit to keep things clear and focused. Budgeting apps can also be useful.

When it comes to deposit advice for first time buyers or understanding mortgage costs explained, a mortgage broker can help you work out exactly what you need to aim for and create a clear financial plan.

Government Schemes for First Time Buyers

Buying your first home is a big step, and the UK government offers several schemes to make it more accessible. These can help with either raising a deposit or lowering the cost of a home.

Shared Ownership allows you to buy a portion of a property (usually between 25 to 75 percent) and pay rent on the remaining part. This lowers the upfront cost but means you’re both a homeowner and a tenant.

The Lifetime ISA (LISA) lets you save up to £4,000 a year towards your first home. The government adds a 25 percent bonus. It’s only available if you’re aged 18 to 39, but it’s a helpful tool if you plan ahead.

The First Homes Scheme offers discounts of up to 30 percent on new-build properties for local first time buyers and key workers. This discount remains with the property when it’s sold in future.

Help to Buy closed to new applicants in 2023, but some buyers might still encounter existing properties bought through the scheme.

Each of these options has pros and cons. Some limit the type of home you can buy, or who you can sell to later. It’s important to check the details before committing.

A mortgage broker can give you First Time Buyers Mortgage Advice and also help you work out which schemes you’re eligible for and whether they suit your plans. Chatsworth Mortgage Group is happy to walk you through each option.

Choosing the Right Mortgage Deal

Once you’ve saved your deposit and are ready to apply, the next step is picking the right mortgage deal. But with so many options out there, how do you decide?

Let’s break down the main types:

• Fixed rate mortgages: Your interest rate stays the same for a set time (usually 2, 3 or 5 years). This means predictable payments and peace of mind.

• Variable rate mortgages: Your rate can go up or down depending on the lender’s changes. These are more flexible but come with less certainty.

• Tracker mortgages: These follow the Bank of England base rate, plus a fixed percentage. When the base rate changes, your payments change too.

When comparing deals, don’t just look at the interest rate. Consider:

• Upfront fees (such as arrangement or booking fees)

• Whether you can overpay without penalties

• The length of the initial term

• Any early repayment charges

Even two mortgages with the same rate can cost very different amounts over time, depending on these extras.

Getting First Time Buyers Mortgage Advice can save you serious money. A mortgage broker, like Chatsworth Mortgage Group, will help you compare your options, explain the details clearly, and match you with a deal that suits your situation.

Need help making sense of the choices? Just ask. We’re here to make mortgages less complicated.

Why Work with a Mortgage Broker

If you’re buying your first home, a mortgage broker can be one of your best assets. They have access to a wide range of lenders, not just the big names you see online or on the high street. That means better chances of finding a deal that suits your needs.

Brokers also help explain everything in plain language, take care of paperwork, and guide you through each step. It’s like having someone in your corner who understands the whole process.

At Chatsworth Mortgage Group, we specialise in helping first time buyers get started. Whether you’ve got questions about your deposit, your credit score, or how the process works, we’re here to help.

Reach out for a no-pressure chat. You don’t need to have it all figured out – we’ll help you get there.

Final Thoughts: First Time Buyers Mortgage Advice

Buying your first home doesn’t have to be confusing or stressful. With the right advice and a clear plan, it can be exciting and rewarding.

Don’t be afraid to ask questions. It’s completely normal to feel unsure at first. What matters most is that you get support that works for you.

Chatsworth Mortgage Group is here to guide you from your first thought to your first set of keys. We’ll make sure you understand your options and feel confident every step of the way.

📧 josh@chatsworthmortgage.co.uk
📞 07552 239 881

If you are looking for First Time Buyers Mortgage Advice – Get in touch and let’s start the conversation.