First Time Buyers
A guide to buying your first home
Congratulations on taking the first steps towards buying your first home! This guide is designed to help you navigate the process of becoming a homeowner with a mortgage. From understanding the UK property market to securing a mortgage and completing the purchase, we'll cover the essential steps to make the process as smooth and rewarding as possible.
Why Choose Us?
There are many considerations when choosing someone to help you with your first mortgage. Getting it right could save you thousands. During our initial consultation we will go through the process together and assess your suitability. We offer a comprehensive range of products from across the market, which means we aren't limited to a smaller selection of products and can choose from thousands of available lenders.
20 Years Experience
Our wealth of experience across the industry means our knowledgeable advisors can give you advice you can trust.
No Offer, No Fee
We are so confident that we will find you the right mortgage, that we only ever charge when you receive a full mortgage offer. For most people this takes them forward to a successful house purchase.
Comprehensive Market Access
You won't be missing out on any great deals. We can access all of the mortgage products which are currently available and know how to find you the most suitable deal.
First Time Buyer FAQ
First time buyer mortgages - How to buy your first home
Getting on the property ladder is a big milestone in your life. It can be both exciting and daunting, and it feels like there’s a lot to learn.
At Henden Financial Limited we help First Time Buyers at every step in the property journey, making sure you understand the process, helping you set your budget and, once you’ve found a home, gaining you access to a suitable mortgage deal.
What is a first time buyer mortgage?
There aren’t any specific mortgages just for First Time Buyers. You can choose from most mortgage types, such as fixed rate, variable rate, repayment or interest-only mortgages. The length of a mortgage is usually 25 years, but it is possible to get shorter or longer mortgage terms.
Each mortgage type has its pros and cons. A qualified mortgage adviser will help you explore the options.
How much could a first time buyer borrow?
The first step towards buying a home is to find out how much you could borrow. This sets your property budget so that you can start looking at flats or houses.
Generally you could borrow around four to five times your salary on a mortgage, but you will also need to put down a deposit.
How much deposit does a first time buyer need?
You need a cash deposit to put towards a home. We recommend saving at least 10% of the home’s value, but it’s possible to buy with a 5% deposit if you have a good credit rating.
The bigger your deposit, the smaller your monthly payments may be. A higher deposit may also get you preferential interest rates.
What is an agreement in principle?
An Agreement in Principle is sometimes called a Decision in Principle. It is a statement from a mortgage lender stating how much they would be prepared to loan you.
Having an Agreement in Principle gives you credibility and shows you’re serious about buying a house. It involves a lender running a few checks on you and confirming in writing if they think a mortgage loan is possible. Your Agreement is free and is usually valid for 30 or 90 days.
There’s no guarantee you will get a mortgage at this stage, however. You will need to do a full mortgage application when you find a property you want to buy, and occasionally these can be declined. Talking to a Mortgage Broker at the outset could prevent this from happening.
Is my credit score important?
Your credit rating is one of the first things a lender will check when you approach them for a mortgage. It helps them understand how reliable you might be in repaying the loan. A bad credit score could mean higher mortgage rates.
It’s easy to check your credit rating online. There are a few simple ways to improve it, but even if you’ve had financial problems in the past, a mortgage isn’t necessarily out of the question.
​
Please be aware that by clicking on to the above links you are leaving Henden Financial Limited website. Please note that Henden Financial Limited nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
Government support for first time buyers
The government has introduced various schemes to help First Time Buyers own a home:
Shared Ownership Scheme
Buy a 25% to 75% share in a home and pay rent on the rest to the council or Housing Association. You could increase the size of your share over time.
Right to Buy
If you are a council or Housing Association tenant, the Right to Buy scheme helps you buy a home with a substantial discount.
How could a mortgage broker help first time buyers?
Most First Time Buyers find it very helpful to talk to a Mortgage Broker. We’re here to support you from the very start of your property journey. We’ll help you set your budget, explore products and then apply for a mortgage.
We’re here for all your questions too: we act as First Time Buyer guides! We’ll explain everything you need to know from stamp duty to mortgage protection products. We love to help people buy their first home, so get in contact today. We’re open Monday to Friday, 9am to 5pm – give us a call.