Mortgages for first time buyers, mortgage advice,
information and guides for first time buyers from mortgage brokers. Find
competitive first time buyer mortgage deals through
mortgage brokers with Clean Slate Mortgages.
We introduce first time buyers to mortgage brokers who have mortgage solutions
for almost every circumstance. We specialise in introducing mortgage brokers to
first time buyers looking for the best deals. We know how tough it is for first
time buyers to get on the property ladder and find a competitive mortgage.
If you are a first time buyer, you don't need to shop around for the most
competitive mortgages - let Clean Slate Mortgages find you a mortgage broker
who can do that for you.
As a first-time buyer there are all sorts of different options available when
it comes to getting your first mortgage. There are fixed rate mortgage,
cashback mortgages, discount rate mortgages, mortgages for people with no
deposits (100% mortgages), and some lenders even offer 125% mortgages so you
have some extra cash available to spend on things like furniture and
fixtures & fittings.
One of the most common questions asked by first time buyers is how much they
can borrow for their first mortgage. As property prices across the UK continue
to rise, first time buyers are often having to borrow an amount several times
their annual salary just to have a chance of getting on the property ladder.
As a result, the average age of a first time buyer has risen noticeably over
the past 15 years.
For first time buyers who are in full time employment and are paid on a
PAYE basis, most mortgage lenders will use your salary as the starting
point for calculating how big a mortgage they will offer you.
If you are applying for a first time buyer mortgage on your own, then the
traditional borrowing limit imposed by most lenders is a mortgage of up to
three times your annual salary. In the case of joint mortgages, the standard
maximum tends to be either:
- Up to three times the larger salary, plus one times the other salary, or
- Up to two and a half times the combined salaries.
For example, if Mr Smith earns £40,000 per annum and his wife earns £20,000
then they could expect to borrow either:
- 3 x £40,000 + £20,000 = £140,000, or
- 2.5 x £60,000 = £150,000
The mortgage lenders' definition of salary is normally your full basic salary
plus 100% of any guaranteed bonuses or 50% of regular bonuses/over time.
Mortgage lenders will usually deduct from your salary the annual payments
to any existing loans prior to carrying out the above calculation. However,
a loan which is due to be completely repaid within the next year will normally
be ignored.
Over the past few years, several banks, building societies, and other mortgage
lenders have begun to allow higher salary multiples for first time buyer
mortgages. Therefore, first time buyer mortgages of up to four times salary
are not uncommon these days, and some mortgage lenders will even go as high as
five times salary for first time buyers in certain professions.
Whatever maximum mortgage amount your lender offers you, it is very important
to ensure you can afford the monthly repayments on your mortgage. Even if the
mortgage payments are manageable at the moment, you should take into account
what will happen in the future should mortgage interest rates rise.
You can use an online mortgage calculator to get a rough idea of the repayment
figures, or you can talk things through with a mortgage broker or independent
financial adviser from our panel of mortgage specialists.
If you would like to know more about mortgages for first time buyers, just
complete our online enquiry form and we will
put you in touch with a professional mortgage consultant.
