What is a First Time Buyer Mortgage?
A first-time buyer mortgage is designed for anyone buying their first home. It often comes with benefits like lower deposit requirements, flexible lending criteria, and additional incentives to help you take your first step onto the property ladder.
Whether you’re saving for a deposit or curious about what you can borrow, we’re here to guide you.
Check what you can afford - Use our Mortgage Affordability Calculator.
What is a Mortgage in Principle (MIP) or Agreement in Principle (AIP)?
A Mortgage in Principle (MIP), also known as an Agreement in Principle (AIP), is a document from a lender that provides an initial indication of how much they might be willing to lend you. It’s not a full mortgage offer but a crucial first step in your home-buying journey.
Here’s why an MIP/AIP is important for first-time buyers:
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Shows You Are a Serious Buyer: Estate agents often require an MIP/AIP before accepting your offer on a property.
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Clarifies Your Budget: It helps you understand how much you could borrow and keeps your property search realistic.
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Strengthens Your Offer: Sellers are more likely to accept your offer knowing you have preliminary approval from a lender.
An MIP/AIP is typically valid for 30 to 90 days, giving you time to find the perfect home.
Why Use a Mortgage Broker for Your First Time Buyer Mortgage?
6 Benefits of Using a Mortgage Broker
Expert Guidance
Mortgage brokers specialize in navigating the mortgage process, helping first-time buyers understand options, terms, and requirements without jargon. Their expertise makes the journey smoother and less stressful.
Help with Complex Applications
If you have unique circumstances, such as being self-employed or having a low credit score, a broker can identify lenders with flexible criteria and advocate on your behalf.
Access to More Lenders
Unlike banks, brokers have access to a wide range of lenders and exclusive deals. This increases the likelihood of finding a mortgage tailored to your specific needs and circumstances.
Personalized Advice
Brokers offer tailored recommendations based on your financial situation, long-term goals, and preferences, ensuring you choose the best mortgage for your needs.
Save Time and Effort
A broker does the heavy lifting for you, comparing mortgage products, handling paperwork, and managing lender communication, saving you time and reducing hassle.
Better Mortgage Rates
Mortgage brokers often have access to exclusive rates and deals that aren’t available directly to the public, helping you secure a more affordable mortgage.
Document Checklist for First Time Buyer Mortgage
1. Proof of Identity
Mortgage lenders need to verify your identity. Ensure you have one of the following:
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Passport (valid and up to date)
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Driving license (with current address)
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National ID card (if applicable)
2. Proof of Address
Lenders will also need to confirm your current residence. Provide at least two of the following documents:
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Utility bills (dated within the last 3 months)
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Council tax statement
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Recent bank or credit card statement
3. Proof of Income
Your income demonstrates your ability to afford mortgage repayments. Requirements vary depending on your employment type:
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Employed Applicants:
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Last 3 months’ payslips
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Latest P60
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Employment contract (if recently started a new job)
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Self-Employed Applicants:
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Last 2-3 years’ tax returns (SA302 forms)
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Recent bank statements showing income deposits
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Accountant-prepared financial statements
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4. Bank Statements
Provide the last 3-6 months of bank statements to give lenders insight into your spending habits, income, and savings. These statements should:
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Show your name and account details
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Highlight consistent income deposits
5. Proof of Deposit
Lenders need evidence of your mortgage deposit, whether it’s savings, a gift, or a bonus. Acceptable proof includes:
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Savings and/or investment account statements
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Lifetime ISA statement (if applicable)
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Gift letter (if deposit is gifted)
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Bonus payment slips
6. Credit History
Lenders will check your credit score and history to assess your financial responsibility.
7. Additional Documents
Depending on your circumstances, lenders might ask for:
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Proof of additional income (e.g., rental income, dividends)
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Debt repayment plans (if applicable)
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ID verification for anyone contributing to your deposit
8. Conveyancer Details
You will need to provide your conveyancer's detail when applying a mortgage. Find your conveyancer here.
Mortgage Calculators
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Is there a fee for your service?Typically we charge a fee of £500 for arranging a mortgage, however the actual fee will depend on your circumstances and if more work is required then we could charge more than this but we will make you aware at the start of the process.
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What is the difference between paid and free brokers?You are about to make your largest purchase in your life. You want the best people on your team. We are the one for you. We are a customer-focused mortgage broker and will deliver the highest level of professionalism and service to your home buying journey. A free mortgage broker gets paid by the bank only and their advice might be biased towards banks that pay them a higher fee. Also, free mortgage broker often does not provide the same level of service and care to their customers as they need to write tons of mortgages to be profitable, which means they do not treat customer with the attention to detail and care you deserved.
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Is your mortgage advice impartial?This is what makes us different from other free online mortgage brokers. We never recommend a product based on how much the lender is compensating us. Instead, we provide professional and impartial mortgage advice to ensure you are treated fairly.
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Should I go with my bank directly rather than using a mortgage broker?Going directly with a bank means you will miss out on other cheaper lenders on the market. Using a mortgage broker often saves you money, and we will also help you relieve the stress of buying a home as we will handle all the research and paperwork for you.
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Are your mortgage brokers qualified and regulated?Our mortgage brokers are CeMAP qualified, and we are regulated under the Financial Conduct Authority (FCA). FCA number 1023518.
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What other services do you provide?We are a one-stop-shop for your homebuying journey. We provide protection (insurance) advise, and we also help you with conveyancing and survey for your home.
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Is your service available online or in person?We offer flexible consultation online or over the phone so you don't have to travel to our office.
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What is a first-time buyer mortgage?A first-time buyer mortgage is a home loan designed for individuals purchasing their first property, often featuring benefits like lower deposits and access to government schemes.
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How much deposit do I need as a first-time buyer?Typically, first-time buyers need a deposit of at least 5% of the property's value. However, a larger deposit can secure better mortgage rates.
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What government schemes are available for first-time buyers?Schemes like Help to Buy, Shared Ownership, and Lifetime ISAs assist first-time buyers in purchasing a home. Learn more in our Knowledge Hub.
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How much can I borrow for my first mortgage?Lenders typically offer 4.5 to 5 times your annual income. However you might able to borrow much more as a first-time buyer. Use our Affordability Calculator to estimate your borrowing potential.
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What is stamp duty, and do first-time buyers need to pay it?Stamp duty is a tax on property purchases. In some regions, first-time buyers are exempt up to a certain property value. Check current thresholds in our Knowledge Hub.
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How does my credit score affect my mortgage application?A higher credit score can improve your chances of mortgage approval and access to better rates. Learn how to boost your score in our Knowledge Hub.
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Should I choose a fixed or variable interest rate mortgage?Fixed rates offer consistent payments, while variable rates can fluctuate. Consider your financial stability and risk tolerance. Contact us for personalized advice.
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What additional costs should I budget for when buying a home?Beyond the deposit, consider expenses like legal fees, surveys, moving costs, and home insurance. Our Knowledge Hub provides a comprehensive list.
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How long does the mortgage application process take?The process typically takes 4 to 8 weeks, but this can vary. Start early to accommodate any delays.
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Can I get a mortgage with a low income?Yes, though your borrowing amount may be limited. Government schemes and lenders with flexible criteria can assist. Explore options in our Knowledge Hub.
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What is an Agreement in Principle (AIP)?An AIP is a lender's indication of how much they'd be willing to lend, based on your financial situation. It's useful when house hunting.
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Do I need a mortgage broker?While not mandatory, a broker can provide access to a wider range of deals and offer expert advice tailored to your needs. Contact us to connect with our experienced brokers.
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What is the difference between freehold and leasehold properties?Freehold means you own the property and the land it's on; leasehold means you own the property for a set number of years but not the land. Learn more in our Knowledge Hub.
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Can I use a gifted deposit for my mortgage?Yes, many lenders accept gifted deposits, typically from family members. Proper documentation will be required.
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What is a mortgage in principle, and how does it differ from a formal offer?A mortgage in principle is an initial estimate of what you can borrow; a formal offer is a binding agreement from the lender after full assessment.
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How does being self-employed affect my mortgage application?Self-employed applicants may need to provide additional proof of income, such as tax returns and business accounts. Our Knowledge Hub offers detailed guidance.
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What is Loan-to-Value (LTV) ratio?LTV is the percentage of the property's value that you're borrowing. A lower LTV can lead to better mortgage rates. Calculate your LTV with our Mortgage Calculator.
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Can I make overpayments on my mortgage?Many mortgages allow overpayments, which can reduce the loan term and interest paid. Check for any early repayment charges.
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What happens if my mortgage application is declined?If declined, assess the reasons, improve your financial situation, and consider seeking advice from a mortgage broker. Contact us for assistance.
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How do I choose the right mortgage term?Shorter terms mean higher monthly payments but less interest over time; longer terms have lower payments but more interest. Use our Mortgage Calculator to compare options.