First Time Buyer

Helping You to Own Your First Home

Looking to purchase your first house? Getting onto the property ladder can be a huge step. Let us help you get the keys to your new home.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keeup repayments on a mortgage.

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What is a First Time Buyer Mortgage?

First time buyer mortgages are for people who are new to the housing market so they can afford their main residence.

When applying for a mortgage, first-time buyers typically need to provide a deposit, which varies depending on the lender and the property value.

A mortgage is an essential financial tool for many first-time buyers, enabling them to realise their dream of homeownership.

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How Much Deposit do I Need to Buy a House?

If you're considering buying a house, you might wonder "how much deposit do I need for a house?" The answer depends on several factors, but one certainty is that you'll need money saved for a mortgage deposit.

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Calculate Your Deposit

Lenders used to require a deposit of at least 5% of the property's value. Recently, some lenders offer low-interest rate loans with smaller deposit requirements.

Find out how much you can borrow with our mortgage calculator

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Consider Fees

In addition to the initial payment for the deposit, you must budget for legal fees, property surveys, and stamp duty.

These costs add up fast, so consider them when calculating your property budget.

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Save Up Money

Expect to save at least 5% of the property's value.

Consider saving more, factor in additional property expenses, and plan accordingly.

Mortgage Options

When looking to purchase a property, many mortgage options are available. Here are some common types of mortgages, along with their advantages and disadvantages:

  • Fixed Rate Mortgage: A fixed rate mortgage keeps the interest rate constant for a set period of time, usually two to five years. This type of mortgage provides predictability, as your monthly payments won't change during the fixed rate period.
  • Interest Only Mortgage: An interest-only mortgage allows the borrower to pay only the interest for a set period of time, usually five to ten years. This type of mortgage offers lower monthly payments during the interest-only period, but borrowers must pay off the principal later.
  • Variable Rate Mortgage: A variable rate mortgage comes with an interest rate that varies over time, typically tied to the lender's standard variable rate (SVR), which may in turn be influenced by central bank rates, such as the Bank of England's base rate. While this type of mortgage often starts with a lower interest rate than fixed-rate mortgages, it's subject to change. Factors such as changes in the central bank's rate, the lender's individual policies and broader economic conditions can cause the interest rate to increase or decrease. While housing market conditions may indirectly impact the mortgage market overall, they do not directly influence the interest rate of a variable rate mortgage. Therefore, borrowers may see their monthly payments fluctuate over the life of the loan.
  • Offset Mortgage: An offset mortgage is linked to a savings account, with the amount of savings offsetting the mortgage debt. This means the borrower only pays interest on the difference between the mortgage balance and savings balance. This type of mortgage can benefit those with substantial savings, as it can reduce the amount of interest paid over time. Remember, both mortgage and savings accounts must be with the same lender.

Find out what's right for you with our free initial consultation.

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Costs of Buying a Home

When buying a home, it's important to consider the various costs involved in the process. Here are some key expenses to keep in mind:

First-Time Buyer Stamp Duty

If you're a first-time buyer, you may be eligible for a stamp duty exemption. However, if the property you're buying is over a certain value, you may still need to pay stamp duty.

Mortgage Valuation Fee

This fee is charged by your lender to cover the cost of a valuation survey to determine the property's value. The fee can vary depending on the property's value and the lender.

Legal Fees for Buying a House

You will need a solicitor or conveyancer to handle the legal aspects of buying a home. The legal fees can vary depending on the complexity of the purchase.

Mortgage Advisor Fees

If you choose to work with a mortgage advisor, they may charge a fee for their services. Lake District Mortgages offers a no fee initial consultation.

Finding and Choosing Property

Find a Property

The first step is to start looking for properties that meet your needs and budget.

You can do this by browsing property websites or working with an estate agent.

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Property Location

The location of the property is an important consideration.

Think about factors such as proximity to schools, public transport, and local facilities.

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Property Condition

The condition of the property is another important consideration.

Consider the age of the property, any necessary repairs or renovations, and whether the property is move-in ready or requires work.

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Property Value

Before making an offer on a property, it's important to check its value to ensure that you're not overpaying.

You can do this by checking recent sale prices of similar properties in the area or by getting a property valuation.

Moving Home

Moving home can be an exciting but also stressful experience. There are several things to consider when planning your move:

  • Cost of moving home: Moving home can be expensive, with costs including hiring a removals company, paying for packing materials, and transportation costs. It's important to budget for these expenses and get quotes from several different providers to ensure you're getting a fair price.
  • Home repairs: Before moving into your new home, you may need to make repairs or do some redecorating. This can include things like painting, fixing leaks, or replacing broken appliances.

Let Us Help

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First Time Buyer Benefits

As a first-time home buyer, there are several benefits and programs available to help you get onto the property ladder.
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First-Time Home Buyer Programs

The UK government offers programs to help first-time buyers purchase a home. This includes the First Home scheme.

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Lifetime Individual Savings Account (LISA)

A LISA is a savings account designed specifically for first-time buyers. Lake District Mortgages do not provide advice on Lifetime ISAs.

Mortgage Guarantee Scheme

5% deposit required for properties costing up to a maximum of £600,000 to help first-time buyers who are struggling to save a large deposit.

You will incur a lifetime ISA government withdrawal charge (currently 25%) if you transfer funds to a different ISA or withdraw the funds before age 60 and you may therefore get back less than you paid into a lifetime ISA.

By saving in a lifetime ISA instead of enrolling in, or contributing to an auto-enrolment pension scheme, occupational pension scheme, or personal pension scheme:

(i) You may lose the benefit of contributions from your employer (if any) to that scheme; and

(ii) your current and future entitlement to means tested benefits (if any) may be affected.

The amount you can borrow will vary between lenders, but if you pass affordability checks, most lenders allow you to borrow from 4.5 and 5.5 times your annual salary.

When you borrow money, like when you take a mortgage, the bank charges you extra money for lending it to you, which is called interest. But when you save money in a bank, the bank pays you extra money for keeping your money with them, and that's also called interest.

The interest is shown as a percentage of the amount you borrowed or saved.

Some sellers will want to take established plants and other moveable features such as furniture with them when they move out. However, some sellers will also leave features behind such as garden sheds.

To avoid any confusion, make sure that you know exactly what is staying and going before you get the keys to your new home.

Newly marketed properties with little work needed often gain interest quick and sell even quicker. If you have fallen in love with a home like this you might not have much time to make a decision.

Properties that have been on the market for a while could seem less attractive but the owner may be willing to accept a lower offer.

Rather than seeing the survey as an additional cost think of it as a health check for your property. Surveys can uncover issues that would cost you large amounts of money to fix, it can even be used to negotiate a lower price if issues are found.

If the property has switched hands many times in a short period of time it might raise some red flags as to why. There's no need to be put off though, speak to the seller to find out why and always get a survery to check the property.

If the home owner has lived there for a long period of time make sure to review the house to check that maintenance of the house hasn't been neglected.

As a first time buyer you could be eligible to pay as little as 5% of the property value. However, this doesn't mean you have to. If you aren't in a hurry and want to reduce your monthly outgoings, using a larger deposit (6%-20%) can save you money in the long run.

Your credit score is a crucial factor in getting approved for a mortgage. Before applying, it's important to check your credit score to make sure there are no errors or issues that need to be addressed. You can get a free credit report from the major credit bureaus, such as Equifax, Experian, and TransUnion.

A mortgage adviser can help you find the right mortgage deals based on your financial situation and needs. They can also provide advice on the home buying process and help you navigate any issues that arise.

Before you start looking for a home, you need to know how much you can afford to spend. A general rule of thumb is that your mortgage payments should not exceed 35% of your gross monthly income. You also need to factor in other expenses, such as property taxes, insurance, and maintenance costs.

Buying a home can be expensive, and you'll need to save for various fees and expenses.

In the UK, first-time buyers are exempt from paying stamp duty on homes worth up to £425,000. However, you'll still need to pay for other costs, such as estate agent fees, conveyancing fees, and moving costs.

As an independent mortgage advisor Lake District Mortgages can help first-time buyers in various ways.

We offer impartial advice on the different types of mortgages available and which ones are most suitable for your circumstances. We also help buyers understand the costs involved in buying a home and work out what they can afford.


Additionally, our independent mortgage advisor can search the market and work with over 90 lenders to find the most competitive rates and deals.

We even assist with the mortgage application process, liaise with lenders, and help buyers understand the terms and conditions of their mortgage.

Overall, we aim to offer valuable support and guidance to first-time buyers, helping them navigate the complex world of mortgages and ultimately find the right home loan for your needs.

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