Trusted lenders we work with
First-time buyer mortgages
Cleerly's pledge
As the go-to UK mortgage broker for first-time buyers and contractor mortgages for independent professionals, Cleerly will help you to:
- Secure a mortgage with as little as 5% deposit
- Borrow up to 5 times your income
- Benefit from the best deals on the market
First-time buyer mortgage FAQs
Securing a mortgage is a difficult process to navigate at the best of times. If you're a First Time Buyer it can be daunting knowing where to start or which lenders to approach. As a First Time Buyer mortgage broker with over 20 years in the business, our specialists can talk you through your options and help you to create a strong, self-explanatory mortgage application that puts you in the best position to be accepted by a lender.
The good news is a parent, guardian, spouse or even a friend can be a guarantor on a First Time Buyer mortgage.
Securing a first-time mortgage with a poor credit rating can be tough, but not impossible. Your eligibility will depend on a range of factors including income, property value, and the nature of credit issues. Whether due to missed payments or insufficient credit history, there's hope. As seasoned mortgage brokers, we provide tailored advice to enhance your credit standing and frame your application appealingly to lenders, aiding numerous First Time Buyers in securing a mortgage.
When choosing a mortgage, it’s important to understand the differences between repayment and interest-only options:
Repayment Mortgage:
- Monthly Payments: You pay back both the capital (the amount you initially borrowed) and the interest.
- End Goal: By the end of your mortgage term, you’ll have fully repaid the total loan.
Interest-Only Mortgage:
- Monthly Payments: You only pay the interest on your loan each month.
- End Goal: At the end of the mortgage term, you still owe the original amount you borrowed. You'll need to demonstrate how you plan to repay this remaining balance.
Since the financial crash of 2008, interest-only mortgages have become a rare option for First Time Buyers. Understanding these distinctions can help you make a more informed decision on the best mortgage type for your financial situation.
As a First Time Buyer, you might be drawn to a longer-term mortgage because it reduces your monthly payments by spreading the cost over a longer period. Here's what you need to know:
Standard Mortgage Term: Typically, mortgages are set for 25 years.
Longer-Term Mortgages: Many lenders now offer mortgages that extend up to 40 years.
Key Consideration: While lower monthly payments can ease your budget, remember that a longer-term mortgage means you'll pay more in interest over the life of the loan. Understanding these factors can help you make an informed decision that aligns with your financial plans.