First-time buyer mortgage

How to get a mortgage if you’re a first-time buyer?

As a first-time buyer, you may think that being accepted for a mortgage is more difficult for you. After all, you’ve not had a mortgage before, so how will the lender judge you? What’s more, as a new borrower, your credit history and score may not be complete enough to secure a loan. Who said getting on the property ladder was ever easy?

But, with a little help from Mortgage Matters Direct, it can be. We know exactly which lenders offer mortgages with lower deposits and have more favourable credit requirements. What’s more, our long-standing relationships with these providers mean that we’ll be able to secure the best possible mortgage for you. With our help, buying your first home will be made that little bit easier.

Talk to one of our staff

First-time buyer stamp duty

Good news – for properties up to £300,000 there’s a stamp duty exemption for first-time buyers.

No stamp duty for first-time buyers? Are you sure?

Well, almost. For properties priced over the stamp duty threshold, first-time buyers will have to pay the standard 5% on the remaining amount – so if your home is £305,000, you’ll only have to pay stamp duty on the £5,000 that’s over the limit.

Use our stamp duty calculator

First-time buyer mortgage calculator

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This calculator is based on a capital repayment mortgage. This figure should only be used as a guide, please contact us for personal and accurate advice.
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured upon it.

Help to Buy Mortgages

For many buyers, getting your foot on the property ladder or making the next step can be hard. With rising property prices and uncertain interest rates, it can take years to save what’s needed to even start the process of applying for a mortgage.

Luckily, there are government schemes which can help to take the pressure off. From Help to Buy Equity Loans to Shared Ownership mortgages, our experts can advise you on everything you need to know about these schemes. Simply get in touch for more information.

Talk to a mortgage advisor

What is Help to Buy?

Help to Buy is the current government initiative that’s designed to help buyers afford to buy their new home.

If you want to buy a new build home, you can apply for a Help to Buy:
Equity Loan.

What is this?

The Government will lend you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. For your mortgage, there are certain lenders you can use who specialise. What’s more, you won’t be charged loan fees on the 20% loan for the first five years of owning your home.

You can also look at:
Shared Ownership

What is this?

Shared Ownership simply means that you own a portion of your home – usually between 25% and 75% – and pay rent for the rest. You’ll also need to part with far less upfront with a shared deposit mortgage – typically just 5% of your new home’s value.

Shared Ownership is also offered to previous homeowner who cannot afford to buy now. So, as long as your annual household income is less than £60,000, you should be accepted.

If you want to buy any home, you can open a Help to Buy:
ISA.

What is this?

Deposit savings for your first home into a Help to Buy: ISA and the Government will boost your balance by 25%. So, for every £200 you put away, you’ll receive an extra £50 from the government, up to a maximum of £3000.

For more information about Help to Buy, visit the government website.

Gifting property with a mortgage

Gifting property to a family member is not only a thoughtful gesture, it can also bypass the need to pay Capital Gains Tax or inheritance tax further down the line. What’s more, you don’t have to wait until your mortgage is paid off to do this.

Gifting property with a mortgage is easier than you may think – you simply ‘gift’ what you’ve already paid and have your beneficiary arrange a mortgage to cover what’s left. Speak to our mortgage advisors and we’ll chat you through the nitty gritty of how this is done.

Talk to a mortgage advisor

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