First Time Buyer Mortgage Advice 

First Time Buyer Mortgage Advice  

Congratulations! You are ready to take the first step on the property ladder. Exciting times. And it can also be a confusing time- there is so much terminology surrounding property purchase, and so many different products available that it’s easy to get confused and overwhelmed. 
Before you find your dream home, we recommend having a chat with an independent mortgage consultant. That way you will get a clear idea of your budget, based on what you can reasonably afford to repay every month. 
At Reeds Financial, we will steer you towards the right kind of mortgage for first time buyers and help you understand the other elements you need in place too. It’s our job to know the difference between repayment, fixed rate, variable rate and so on, and we will help you find a deal within your means as well as directing you through the property buying maze. 
You will have questions about the process so please don’t ever be afraid to ask. We have tried to answer some of them here but do call us if there’s anything at all you want to know. We are here to put your mind at rest. 

Contents 

First time mortgage tips & advice 
Services we can also help with 
First time buyer FAQs 

How we can help First Time Buyers 

How we can help 

We are whole of market 

You wouldn’t settle for any old home, so why would you settle for any old mortgage? We’re an independent mortgage broker, which means we’re not tied to any lenders. We look at the whole market to deliver competitive mortgage rates for first-time buyers. 

We make it easy 

It’s hard to know what your options are when you’ve never taken out this kind of loan before. Your personal mortgage adviser guides you through the journey, from your very first call with us to the day you move in. We’ll even be here to help should your situation – and therefore your mortgage needs - change in the future. 

We can save you money 

Your mortgage consultant learns everything they need to know about your circumstances, so they can find you rates for your situation. We could potentially save you up to tens of thousands throughout the term of your mortgage – that’s money you could spend on your new home. 

First time mortgage advice & tips 

First time mortgage tips & advice 

There are a few things you should bear in mind when you take out a mortgage to buy a property for the first time. These include certain arrangements you need to put in place and extra costs involved. 

Credit Report 

Lenders generally use their own system to work out your score based on the information in your Credit Report and they routinely check your information at more than one Credit Reference Agency. Your checkmyfile Credit Score is based on all of the Credit Report information gathered from Equifax, Experian, TransUnion and Crediva to help you better understand how you are likely to be assessed when applying for mortgage or other credit. 

Deposit 

The biggie. We’re always hearing about how first-time buyers are struggling to save a deposit large enough to buy a home. The amount you’ll have to pay in deposit depends on the value of the property you want to buy and the loan-to-value - the loan amount compared to the value of the property - required by the lender. 
The minimum deposit you can put down on a mortgage is 5% of the value of the property. Your mortgage makes up the rest, i.e. 95%. In this case, the loan-to-value is 95%. 

Other costs when buying a property 

When you take out a mortgage you need to organise and pay for: 
Conveyancing/Solicitors’ fees 
Insurance – this should be in place from the exchange of contracts 

There are some additional costs you should to factor in: 

Valuation for lender purposes – this is the most basic valuation and the lender will organise it. Some lenders pay for the valuation, but others will expect you to 
Stamp Duty Land Tax – as a first-time buyer, you won’t be liable to pay any Stamp Duty unless you’re buying a property over £300,000 
Removal fees 

Don't just take our word for it 

Don't just take our word for it 

Here are a few ways we have changed our customers’ lives. 

Services we can also help with 

Services we can also help with 

We’re not the kind of broker who only helps you up until you’ve accepted your mortgage offer. Our long-standing partnerships with our clients and other businesses mean we can deliver the highest quality of service right up to the day you move in. 

Concierge 

We can help you move into your property, set up utilities, register for Council Tax and more with our Concierge Service – available through Please Connect Me. 

Legals 

We can refer you to a solicitor who’ll manage the conveyancing part of the process. We choose from a carefully selected panel of conveyancers and solicitors. 

Protection 

We can organise bespoke life assurances for you by selecting from our superb panel of providers. We charge no arrangement fees for this service. 

Property Surveys 

With our National partners GoTo Group we don't just stop at mortgages, we can also help you arrange a property survey to know it's true condition. 

Insurance 

First time buyer? Or just wanting to change insurance providers? We can find you 5* defatqo rated buildings and contents insurance tailored to suit your needs. 

Wills & Trusts 

Our National partners Paradigm Wills can provide a cost effective solution to any type of situation no matter how complex it is when it comes to Will and Estate Planning and more. 

First Time Buyer FAQs 

First Time Buyer FAQs 

 
A mortgage is a loan from a bank or building society for a set period of years. You borrow the amount you need to buy the property, less your deposit, and agree to repay it over a set term, usually 25 years. At the end of the agreed term, the property will be yours. 
 
It is true that you can find some mortgage deals online or by going into your bank or building society. But talking to an independent adviser, like Reeds Financial, gives you access to the whole of market, so every mortgage available. You will receive free, impartial advice and we can also talk you through the rest of the buying process and let you know what else you’ll need in place. You don’t want any nasty – or costly - surprises to hold you up. 
 
Mortgage providers can be less keen to loan to first time buyers but the majority of them recognise that you need to start somewhere and so have specific products tailored to first time buyers. Generally, you will need to provide proof of earnings to show you can comfortably cover the repayments, demonstrate a good credit history and have a deposit saved up. A mortgage broker will have experience of applying for a mortgage for a first-time buyer and will be able to guide you through the process. 
 
The more you can save the better. The absolute minimum is 5% of the purchase price, which means the lender will loan you the other 95%. (It is possible to get 100% mortgages, but they come with a much higher risk). If you have more than 5% saved, you will have more mortgage options and your monthly repayments are likely to be lower. Your mortgage adviser can help you understand deposits and show you the mortgages available to you. 
 
A mortgage is likely to be the single biggest loan – and therefore debt – that you ever have. The risk is your ability to repay. Because the lender owns the property until you repay them entirely, they could repossess it if you cannot make the regular payments. Your mortgage adviser will make sure you are aware of the risks before you enter into any agreement. 
 
The government have a scheme to help certain people get on to the property ladder, including first time buyers. There are different criteria for different regions, but essentially the government lend you a portion of the mortgage and you pay a reduced mortgage amount for the first few years. 
 
Yes, you can. If you re self-employed or freelance, the best thing you can do is speak to an independent specialist. Reeds Financial is expert at helping the self-employed buy their own home and we can steer you towards the best deal for you and advise you on what you’ll need in place to be able to secure a mortgage. Take a look at our Specialist Mortgages page for more details. 

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. 

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