Question 1

How much deposit do I need as a first-time buyer?

Accepted Answer

The minimum is 5% of the property price, which gives you access to 95% LTV mortgages. A 10% deposit usually unlocks better interest rates, and 15% or more gives you the widest choice of lenders and the lowest rates. Some borrowers with weaker credit scores may need 15% or more to qualify.

Question 2

What government schemes can help me onto the ladder?

Accepted Answer

The main options today are Shared Ownership (buy 25% to 75% of a home and pay rent on the rest), the First Homes scheme (new build properties at a 30%+ discount for local first-time buyers), and the Lifetime ISA (save up to £4,000 a year towards your first home with a 25% government bonus, up to £1,000 a year). Right to Buy is also available for eligible council and housing association tenants.

Question 3

Do first-time buyers pay Stamp Duty in England?

Accepted Answer

First-time buyers in England pay no Stamp Duty on the first £425,000 of a property priced up to £625,000. Between £425,001 and £625,000 a 5% rate applies. If the price is over £625,000, you lose the relief entirely and pay standard rates on the full amount. Scotland (LBTT) and Wales (LTT) have separate rules.

Question 4

What is a mortgage Agreement in Principle (AIP)?

Accepted Answer

An Agreement in Principle, also called a Decision in Principle, is a written statement from a lender showing roughly how much they would lend you based on a soft credit check and basic income details. It is not a binding offer, but estate agents and sellers expect to see one before they take an offer seriously. We can usually get an AIP back within 24 hours.

Question 5

Is a Joint Borrower Sole Proprietor (JBSP) mortgage right for me?

Accepted Answer

A JBSP lets a family member (typically a parent) be named on the mortgage to boost the affordability calculation, without being named on the property deeds. You own the property outright, keep your first-time buyer status and Stamp Duty relief, and benefit from the extra income on the application. It is popular where parents want to help without gifting a deposit.

Question 6

How much can I borrow for my first mortgage?

Accepted Answer

Most lenders offer between 4 and 4.5 times your annual income. A few specialist lenders go to 5x or 5.5x for professionals or higher earners. For joint applications, both incomes are combined. Existing debt, monthly commitments, dependants and deposit size all reduce the final figure. Our affordability calculator gives a rough estimate, and a broker will give you the accurate number.

Question 7

What costs should I budget for beyond the deposit?

Accepted Answer

Plan for solicitor or conveyancing fees of around £1,000 to £2,000, a survey of £300 to £1,500 depending on the level, mortgage arrangement and valuation fees (often £0 to £1,500), broker fees if applicable, removal costs, and money for initial repairs and furnishing. Stamp Duty may also apply if the property is over £425,000.

Question 8

What documents do I need to apply?

Accepted Answer

Lenders typically ask for proof of ID (passport or driving licence), proof of address (recent utility bill or bank statement), the last 3 months of payslips and your most recent P60 (or 2 to 3 years of SA302s and tax year overviews if self-employed), the last 3 months of bank statements, and details of any debts. We send a tailored document list before your application.

Question 9

What is the difference between fixed and variable rate mortgages?

Accepted Answer

A fixed rate locks your interest rate for a set period (commonly 2, 3 or 5 years), so your monthly payment cannot change in that window. A variable rate can move: tracker mortgages move with the Bank of England base rate plus a margin, and the lender's Standard Variable Rate is set at the lender's discretion. Most first-time buyers prefer fixed rates for budget certainty.

Question 10

Should I use a broker or go straight to a bank?

Accepted Answer

A bank can only sell you their own products. A whole of market broker like us has access to thousands of mortgage products from over 100 lenders, including specialist and broker-only deals. We handle the paperwork, chase the lender and manage the application through to offer. Our first appointment is free, so it costs nothing to compare.

Question 11

Can I get a mortgage with a low credit score?

Accepted Answer

Yes. Mainstream lenders prefer scores in the good or excellent range, but specialist lenders cater for missed payments, defaults, CCJs and even discharged bankruptcies. You typically need a larger deposit (often 15% or more) and the rate is higher. Building your score before applying (electoral roll, on-time bills, low credit utilisation) widens your options.

Question 12

Can I buy a property jointly with a friend, partner or family member?

Accepted Answer

Yes. Up to four people can be named on a residential mortgage, and combining incomes increases borrowing capacity. Most joint purchases are between couples, but friends and family can also buy together. A solicitor should prepare a Declaration of Trust or co-ownership agreement covering what happens if one party wants to sell, dies or cannot keep up with payments.

Question 13

How long does the full process take?

Accepted Answer

From application to completion usually takes 8 to 12 weeks. An AIP comes back in 24 hours or less. The full mortgage application and underwriting take 2 to 4 weeks, the survey 1 to 2 weeks, and the conveyancing 4 to 8 weeks. Onward chains, lease extensions or freeholder enquiries can extend this.

Question 14

What if I have been declined for a mortgage?

Accepted Answer

A decline from one bank does not mean you cannot get a mortgage. Lenders use very different criteria and the same case can fail at one and pass at another. Avoid firing off more applications, as multiple hard credit searches hurt your score. Speak to a broker, find out the real reason for the decline, and target lenders whose criteria fit your situation.

Question 15

How can I improve my chances of approval before applying?

Accepted Answer

Check your credit report at all three bureaus and fix any errors, register on the electoral roll at your current address, pay every bill on time, keep credit card balances under 30% of the limit, clear or reduce loans where possible, avoid opening new credit in the 3 to 6 months before applying, and avoid large unexplained deposits or gambling transactions on your bank statements.

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