What Mortgage Deals Are Waiting for First-time Buyers

How much can a first time buyer borrow?           

First home?

Isn?t that lovely!!!

Now you are planning to buy your first home. Pretty soon, you might think of letting your family enter that home or making a new office out of it for business purposes.

That is going to be a great thing indeed!

But first-time buyers are often doubtful regarding a home. It is that they need to learn more about the lending industry as many of them turn mortgage loans for buying their first home.

And that is perfectly okay!

You can make your loan come in the most effective usage if you know what you need to do with it for purchasing your first abode.

Who is a first-time borrower? Well, a first-time borrower is a person who has never owned a home before with a loan such as a mortgage. The mortgage brokers give these borrowers certain perks as well. If you are a first-time buyer, then you might get a lower deposit rate of 5% to 10%. This results in a good LTV rate (Loan-to-Value rate). According to statistics, you can be eligible for a 90% to 95% LTV for mortgages you are looking for.

To understand more about the first-time mortgage purchase, read this post until the end, as you will find it interesting.

How Much Can a First-time Buyer Borrow as Mortgage?

Speaking to any independent mortgage advisor from Glasgow, you are going to know that first-time buyers must take time to understand what mortgages are and how they work.

In that regard, you will already get some information here in this post. 

A mortgage is nothing but a loan. However, it is not a personal loan but a secured loan. A secured loan means you can borrow an amount of money where an asset is required to be held against the loan amount. The asset is obviously a home or a real estate property for a mortgage. Assets are called collateral in lending terms.

An already owned home can also be counted as collateral. This scheme doesn?t apply to first-time buyers as the home they buy is considered collateral.

So, how much can you borrow as a first-time mortgage buyer?

To get the mortgage, you do need to make a 5% and 10% deposit. With that, your mortgage brokers are going to send you a quote of the loan amount immediately. As per industry norms and if your income has been found to pay the loan instalments comfortably without exhausting your personal finances, then you are going to get a loan that is 5 times your annual salary. So, if your total annual salary comes to around 6000 pounds (which means you are earning 500 pounds a month), then you will get a mortgage of (6000 x 5) = 30,000 pounds.

Isn?t that simple?

Now, we are going to look at the options you have for the mortgage.

Also Read : 5 Ways to Professionally Manage Your Mortgage

  • Types of First-time Borrower Mortgage Deals: Simplified for You

As a matter of fact, you must know something before learning the types of mortgages available for someone buying a home for the first time.

It is that the mortgage type and their rates vary because of the huge involvement of the market. In that regard, getting in touch with a mortgage broker will get you all the kinds of facilities you would like to access.

The brokers use something called the WHOLE-OF-MARKET APPROACH, by which they scan every possible mortgage option for you in order to bring you the one option that would be the most useful and the most relevant.

Speaking to a mortgage broker is also easy if you want to. Just search for them online, compare rates and finalise an appointment with one of them. Speak to your broker about your real mortgage needs, and you will get to make a solution very soon.

Fixed Rate Mortgages

The most common mortgage available for you.

Fixed-rate mortgages are the type of mortgages (conventionally speaking) which ask you to pay instalments following a fixed interest rate and instalment amount. 

The loan term can last for 3 to 5 years, whereas you can get a long 10-year term with some lenders too.
Offset Mortgages

The most common mortgage available for you. 

Fixed-rate mortgages are the type of mortgages (conventionally speaking) which ask you to pay instalments following a fixed interest rate and instalment amount. 

The loan term can last for 3 to 5 years, whereas you can get a long 10-year term with some lenders too.
Tracker Mortgages

In this mortgage option, your interest rates won?t remain fixed, unlike fixed-rate mortgages.
The rates are going to vary or experience ups and downs as per The Bank of England.

If you have a good income and you know that you are able to offer the rates and instalments to your lender even if the rate fluctuates, then you can surely go for this type of mortgage.
Buy-to-Let Mortgages

These mortgage loans are quite interesting.
You are also going to get a good many option for repayments with this type of lending.
Here, you can take out a mortgage for a home, which you are purchasing for the purpose of
renting it out.
Buy-to-let mortgages for first-time buyers are common. Plus, other types of borrowers can also use this mortgage f they want to.

  • Time to Get a Mortgage for Your First Home: Here?s How?

So when you are ready to take out a financial service such as this, you need to remind yourself that there are rules you should follow.

And here they are:

  • Make sure you have a good income record and a sound financial behaviour with no such fluctuating graphs.
  • You must work with your present employer for at least 2 years
  • Your income and debt percentage should be adequately proportionate. The debt percentage should be lower than your income (Income 60% and debt 40%). Although the percentage rates are allowed to go the same (both 50%) in some cases, your debt must not be more than your income.
  • Be frank with your broker about your credit score and income statement. Make an update of both.
  • If you are divorced from your partner and are living separately, yet you two are holding a joint mortgage as first-time buyers, then talk to your lender and broker about the situation and quit your financial responsibilities mutually as you both cannot comply with the terms of the mortgage in the ?joint? way.

There is one thing we are missing out on, though!

We can learn it in conclusion.

  • To Conclude: Speak to a Mortgage Broker

Whether it is a mortgage for first-time buyers or a mortgage for anyone, you need to have a word with a professional mortgage buyer because they are going to SCRUTINISE your situation and come up with the PERFECT SOLUTION for you.

After all, buying a home is a great responsibility.

And you are probably going to need some extra help.


If you are a first-time mortgage buyer, then get in touch with professional mortgage brokers first instead of trying to do things yourself.

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