First time buyer mortgages
Expert help for those buying their first home
If you're a first time buyer in Bicester, Banbury, Oxford, Aylesbury or Milton Keynes then why not speak to Blueberry Mortgages and let me search the whole mortgage market to find you the perfect first time buyer mortgage.
I am a whole of market mortgage broker based in Bicester covering the whole of Oxfordshire and Buckinghamshire and I offer a completely free and impartial mortgage consultation in person, on the phone or by email. Let me help you find your 1st home so you can be truly happy.
Blueberry Mortgages - FTB mortgage specialists
You've spent so much time and effort finding your dream home don't just take the first mortgage that comes along. Get in touch with Blueberry Mortgages, your first time buyer mortgage specialists and let me search the whole market to ensure you are getting the best deal.
I offer a completely free, no obligation first time buyer mortgage consultation which can be by email, over the phone or in person at a time and place to suit you.
First Time Buyer Mortgage FAQ's
What is a first time buyer mortgage?
A first time buyer mortgage is the name given to any mortgage designed to be used to purchase a home, where the buyer does not already own a property. Although in most instances this will likely be someone’s first home purchase, hence the name, it is possible for someone who has bought a home previously to apply for most first time buyer mortgages as long as they do not currently own a property
Am I eligible for one?
Basically, if you have money for a deposit and a verifiable, regular income along with a clean credit history then yes you will likely be eligible to apply for a mortgage. But even if you don’t tick all of those boxes there may still be a mortgage just right for you as there are thousands of lenders who each have different criteria but it would be advisable to speak to a mortgage broker to find out what your options are
How much can I borrow?
As a rule of thumb most lenders will lend around 4 to 4.5 times your annual salary less any committed expenses. But it is highly advisable to speak to a broker about this to be sure exactly how much you can borrow which could save you wasting your time looking at properties that are out of your budget. And a quick conversation with a mortgage adviser could also reveal that you can borrow more than you were expecting meaning you could be looking at the penthouse in that new development instead of the basement flat
How much deposit will I need?
The first time buyer mortgage market is extremely competitive and it is possible to find many home loans that require just a 5% deposit and even some that require no deposit at all (although usually some other form of security is required) but the thing to remember is the larger your deposit the lower your interest rate is likely to be. And this is because a lender sets the interest rate based on the risk of lending you such a large sum of money. If you get in to trouble and they are forced to repossess the property then they are more likely to find it easy to get their money back if you put up 30% as a deposit than if you put in just 5% and so the interest rate payable will reflect this
What if I have a poor credit history?
Although it will limit the lenders willing to consider you for a first time buyer mortgage there are a number of specialist lenders who are more than happy to consider all sorts of adverse credit records including missed payments, defaults, CCJ’s and even worse. Get in touch and I will give you an idea of what’s available to you
What interest rate will my mortgage have?
This depends on many factors but the interest rate of any mortgage reflects the risk to the lender. So someone with perfect credit, a large deposit and a comfortable salary to loan ratio might be able to secure the most favourable interest rates somewhere below 2%. But as you stray further from this ideal you will notice rates start to rise accordingly. Keep going to other end of the scale to someone with a poor credit history, a small deposit and a stretched salary to loan ratio and they may still be able to get a mortgage but the rate could be as high as 5 or 6%
What is the Help to Buy Scheme?
The Help to Buy Scheme is a government incentive to help anyone who doesn’t already own a property to buy a new-build home. If you are eligible for a mortgage and meet the criteria then the Help to Buy Scheme may effectively loan you 20% of the purchase price of the property in return for 20% equity (an equity loan). This could allow you to buy a home for a higher price than you would otherwise be able to afford but if you do not buy back the 20% equity before you sell you will have to give the Help to Buy Scheme 20% of the sale price of your property which could be considerably more than it was when you bought the home
Is there any other help for first time buyers?
Although some developers offer many incentives to new home buyers, the best help you can get is from family in the form of a gifted deposit whereby someone ‘gifts’ you the money for a deposit as this is by far the hardest part for most first time buyers. It is also possible to get a guarantor mortgage, which is where a close family member acts as a guarantor for your repayments meaning you could borrow significantly more than you could without a guarantor
Why Use a Mortgage Broker
Although I offer a completely free, no obligation mortgage consultation there is a charge if you would like me to apply for a mortgage on your behalf, so why use a mortgage broker instead of going direct to a high street bank?
Making the wrong choice about your mortgage can cost you hundreds – even thousands of pounds – more than you need to pay. And because mortgages are awash with additional fees and charges, it’s all too easy to get tripped up. That’s why it makes a lot of sense to go with a mortgage broker.
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Mortgage brokers possess a wealth of valuable market knowledge and experience, in addition to having to be formally qualified to give advice on financial products. And independent mortgage brokers help you find the best mortgage deals available on the market – not just from a single provider.
Moneyfacts.co.ukHelping you make better decisions
They know which lenders are comfortable with unusual circumstances and they will offer advice and guidance throughout the mortgage process, they will also act as your advocate with the mortgage lenders, making it less stressful. They are also particularly useful if you are in an unusual position.
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They might have exclusive deals with lenders, not otherwise available and they’ll help you take all the costs and features of the mortgage into account, beyond the interest rate. They often complete the paperwork for you, so your application should be dealt with faster and should only recommend a mortgage that is suitable.