Back to MortgagesFirst time buyers
Most of us dream of owning our own home, and we’re here to help you get there. If you just want some advice, you can book an appointment to speak to our team.
We’ve put some guidance together so that you feel confident about the process and the basics. Have a read through. Don't worry if there are any terms in it that you’re not familiar with, there’s our Mortgage terms explained page too.
Steps to get a first time buyer mortgage
Step 1
What you could borrow
Use our calculators to work out how much you could borrow and what it'd cost to pay it back per month.
Step 2
Compare our products
We’ve made a mortgage range specifically for first time buyers. We’ve got a selection of government scheme mortgages, too.
Step 3
Get your Decision in Principle
Depending on the product, you can either apply online or over the phone. You'll see the application options on the product information page.
Our mortgages
Our First Time Buyer Mortgages
We know that buying your first home is one of the biggest purchases you’ll ever make, and it’s not the easiest thing to achieve. To help you along, we’ve made a range of mortgages specifically for first time buyers.
Features include
You can start with a minimum deposit of 5%
You could borrow up to five times your income
Fixed monthly payments available over a range of initial terms
Buying schemes
These mortgage ranges are backed by the government, and could be the way you become a home owner.
Shared ownership means you’ll own only a part of the property initially and pay rent on the share you don’t own.
Shared equity means you own 100% of the property, but you may not own 100% of its value as this equity will be shared with a third party. Bear in mind that if your property goes up in value, so will the amount you’ll repay.
This scheme allows those that meet the criteria to purchase a home with a discount of up to 50%.
Applying for a mortgage
What you need to apply
Details of your deposit and where it’s coming from
Information about the type of property you’re looking to buy
Last 3 months of payslips, or the latest 2 years of self-assessments if you're self-employed
Last 3 months' bank statements
Details of any financial commitments, such as credit cards, loans or childcare costs
Apply online
If you apply online, you won't get advice from us. You'll need to make your own choice about which mortgage is suitable for you.
Apply over the phone
If you’d prefer to get some advice on which mortgage is suitable for you, you can book a telephone appointment or call us on 03450 505 075.
Your home could be repossessed if you don’t keep up your mortgage repayments.
Your first home with us
Free mortgage valuation
We'll complete a standard valuation of the property as part of your application. This is free of charge up to £999.
Wide range of mortgage products
We know that everyone's different. That's why we have a broad range of mortgages for you to choose from.
Experian Boost
Factor in payments like streaming services and council tax to potentially 'boost' your credit score in your mortgage application.
Award winning provider
We’re really proud of our awards and how they show what we do for our members.
Still need to save?
If you're not quite at your savings goal yet, we've got a few options to help you get there.
Things to consider
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You can start with a minimum deposit of 5%
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You also need to save and budget for legal fees, house surveys, etc.
Home insurance
Once you’ve applied for your mortgage, it’s important to insure your home. Having appropriate buildings insurance is a condition of your mortgage.
We work with Uinsure to offer 5 star Defaqto cover and award-winning technology to our members. You can get a quote in as little as 30 seconds.
Defaqto rating February 2025.
Life insurance
Life Insurance or Life Insurance with Critical Illness Cover could pay out a cash lump sum or help maintain the standard of living for your loved ones if the worst should happen.
We work with Legal & General to bring our members life insurance from just £6 a month,
First time buyers - common questions
Your deposit is the money that you pay upfront towards the cost of the property. You’ll need a minimum deposit of 5%. The rest will be covered by your mortgage. In general, the more deposit you have, the greater the range of mortgages that will be available.
Read our article on How to build towards a house deposit to find out more.
As well as the deposit and monthly mortgage payments, there are a few other extra costs. Mortgage valuation fees, legal fees, taxes and moving costs are among these.
For more details, take a look at our helpful article on how much money you need to buy a house. We also have a fees checklist to give you an idea of what to expect.
We define a first time buyer as someone who’s not had a mortgage in the last three years.
To be eligible to apply for one of our First Time Buyer Mortgages, at least one applicant must not have had a mortgage within the last 3 years.
Your credit score is a record of all your borrowing history, so lenders use it to assess whether they should lend to you. If you’ve got a record of repaying loans on time, you’re more likely to be offered better mortgage rates.
If your credit score is low, you’d be offered more expensive rates. What counts as a poor credit score depends on the credit reference agency you’re using. For example, Experian’s threshold for a poor credit score is 561-720.
So, it’s important to work on your score to make it as good as it can be. To improve your credit score, you can:
- Pay bills on time - including internet subscriptions and phone contracts
- Pay off existing debts
- Live in one home for an extended period of time
- Register on the electoral roll
You should also keep an eye out for incorrect information or fraudulent activity. By checking your credit report on a fairly regular basis, you can flag up anything that doesn't look right.
For more information, read our Experian Boost article.
Depending on when your new mortgage starts and your chosen payment date, the first mortgage payment covers one or two monthly payments, plus initial interest, at once.
Example 1
If your mortgage starts on the 20th July and the payment date is the 1st of the month, the earliest we could collect the Direct Debit payment from your bank would be the 1st September. This is because we need at least 10 working days to set up the Direct Debit. This payment would include the initial interest charged for July, plus the two regular monthly payments for August and September. So, if the regular monthly payment was £1,000 and the initial interest was £350, the payment on the1st September would be £2,350. Your next payment would then be on the1st October and revert to your normal, regular payment.
Example 2
If your mortgage starts on the 5th July and the payment is due on the 1st of the month, we’d have enough time to set up the Direct Debit collection for the 1st August.
The first payment would include the regular monthly payment for August and the initial interest charged for July. So, if the regular payment was £1,000 and the initial interest was £800, the payment on the 1st August would be £1,800. Your next payment would then be on the 1st September and revert to your normal, regular payment.
We’ll write to you when the mortgage starts to confirm the amount before we take the payment. If you're buying a new home, the letter will come to your new property address. If you're buying a Buy to Let property, the letter will be sent to the correspondence address. If you have any questions, give us a call on 0345 050 5075.
Overpayments are payments that are over and above your standard monthly amount. If you’re making an overpayment, there may be conditions, fees or early repayment charges.
If you’d like to make an extra mortgage payment above your usual monthly payment, check your terms and conditions first to see if there’s any fees you need to pay.
For example, there may be an Early Repayment Charge.
The number of overpayments you can make each year without having to pay any fees or charges depends on the type of mortgage you have.
The limit is usually 10% of the mortgage balance each year. To find out how much you can overpay each year without fees or charges, see the terms and conditions in the mortgage offer you received when you took out your mortgage, or contact us.
Example
If your mortgage balance is £128,000 at the beginning of the year, the maximum amount you can overpay on top of your regular fixed payments is £12,800.
How to make an overpayment
Once you’ve checked this and you’re happy to go ahead with the overpayment, you can pay by:
- Bank transfer e.g. faster payment
- Card payment in branch or over the phone
- Cash or cheque in branch
