Expert First-Time Buyer Mortgage Advice

Making your first step onto the property ladder simple and straightforward with Montgomery Financial

Making your first step onto the property ladder can feel overwhelming, but with expert first-time buyer mortgage advice from Montgomery Financial, buying your first home becomes simple and straightforward. Our dedicated mortgage advisors specialise in finding the best mortgages for first-time buyers across the whole of market, helping you secure the perfect mortgage for your circumstances.

Why should I obtain mortgage advice as a first time buyer?

Navigating the mortgage market as a first-time buyer presents unique challenges that our expert mortgage broker team understands. When you're buying your first home, having professional buyer mortgage advice ensures you get the best deal available whilst avoiding costly mistakes throughout the buying process.

Our experienced mortgage advisors guide you throughout the entire process, from understanding how much deposit you need to securing your mortgage offer. We specialise in first-time buyer mortgages and work with lenders who offer competitive mortgage rates specifically designed for those taking their first step onto the property ladder.

As an authorised and regulated mortgage broker, we search the whole of market to find mortgages for first-time buyers that match your financial situation. Whether you're looking for a 5% deposit mortgage or exploring 100% mortgage options, our mortgage adviser team will help you navigate every option available.

How to Get a Mortgage as a First-Time Buyer

Starting your journey to homeownership? Begin with a quick call with one of our expert advisers to explore your deposit options and any first-time buyer schemes that might be available. We’ll help you secure an Agreement in Principle (AIP) so you can show sellers you’re ready to move forward.

When your offer on a property is accepted, we’ll work with your chosen lender to secure a formal mortgage offer. At the same time, your solicitor will manage the legal checks, searches, and contracts. We’ll be with you throughout the process to help things run smoothly and stress-free.

Our deep knowledge of the mortgage process means we can support you at every stage — from budgeting to completion. Whether you’re concerned about saving enough for a deposit or just want help understanding your options, we’ll give you clear, practical mortgage advice to help you get into your first home sooner.

Why Montgomery Financial - Your Trusted First Time Buyers Mortgage Broker

Choosing the right mortgage advisor is crucial for first time buyers. Montgomery Financial offers a comprehensive service that covers every aspect of your first mortgage application. Our team of expert mortgage advisors understands the unique challenges facing first time buyers in today's market.

We provide access to the whole of market, including exclusive deals not available directly from lenders. Our mortgage adviser team works tirelessly to secure you the best mortgages available, whether you're looking for your first home with a small deposit or exploring government schemes designed to help first time buyers.

Being authorised and regulated by the Financial Conduct Authority, we provide professional advice you can trust. Our mortgage advisors will liaise with your lender, solicitor, and estate agent throughout the process, ensuring everything runs smoothly from start to finish.

The Buying Process Accordion

Step 1: Work out your deposit and how much you can borrow

Understanding your affordability is the first crucial step in the home-buying process. Most lenders will ask for a deposit between 5-10% of the purchase price, though some innovative products now offer 100% mortgages and 1% deposit mortgages for eligible first time buyers.

Your deposit directly affects the mortgage rates available to you. Generally, the larger your deposit, the better mortgage rates you'll be able to secure. However, don't let a small deposit discourage you - there are many options available for first time buyers, including government schemes designed specifically to help you get onto the property ladder.

When calculating how much you can borrow, lenders typically offer 4-4.5 times your annual income, though this can vary based on your financial situation and the lender's criteria. Our mortgage advisors will help you understand exactly how much you'll be able to afford, taking into account all your income and expenditure.

Step 2: Get a mortgage in principle (MIP)

A mortgage in principle, also known as an agreement in principle or decision in principle, is a conditional offer from a lender stating how much they're willing to lend you. This crucial document demonstrates to estate agents and sellers that you're a serious buyer with access to mortgage funding.

Our mortgage advisors can arrange your mortgage in principle quickly and efficiently, often within 24 hours. Having this in place before you start house hunting puts you in a stronger position when making offers and shows sellers you're ready to proceed with your purchase.

Step 3: Get house hunting

Once you know how much you can borrow and have your mortgage in principle, you can start searching for your perfect first home. Take your time during this process - finding the right property is crucial, and you don't want to rush into a decision you might regret.

Remember that your mortgage in principle typically lasts 60-90 days, so factor this timeframe into your property search. If needed, we can arrange a new agreement in principle to extend your searching period.

Step 4: Current First-Time Buyer Mortgage Rates and Market Trends

The mortgage market offers various products designed specifically for first time buyers, with competitive mortgage rates available across different deposit levels. Understanding the different types available helps ensure you select the best mortgage for your circumstances:

Fixed-rate mortgages offer stability with guaranteed repayments for a set period, typically 2-10 years. This predictability makes budgeting easier and protects you from interest rate rises during the fixed period.

Variable-rate mortgages fluctuate with market conditions and the lender's standard variable rate. While these can offer savings when rates fall, they also carry the risk of increased payments if rates rise.

Our mortgage advisors will explain all available options and help you choose the mortgage product that best suits your financial situation and long-term plans.

Step 5: Find a conveyancing solicitor

Conveyancing is the legal process of transferring property ownership. Choosing an experienced solicitor is essential for a smooth transaction. Our mortgage advisors can recommend trusted conveyancing professionals who specialise in first-time buyer transactions.

Your solicitor will handle all legal aspects of your purchase, including property searches, contract reviews, and the final exchange of contracts. They'll work closely with our team to ensure all mortgage requirements are met throughout the conveyancing process.

Step 6: Apply for a mortgage

Once you've chosen your mortgage product and found your ideal property, we'll submit your formal mortgage application to your chosen lender. This process requires detailed financial documentation, including bank statements, payslips, and proof of deposit.

Our mortgage advisors handle the entire application process, liaising with lenders on your behalf and keeping you updated every step of the way. We'll ensure your application is submitted accurately and promptly to avoid delays.

Step 7: Valuations and Surveys

Your chosen lender will arrange a valuation to confirm the property's worth matches the loan amount. This protects both you and the lender by ensuring the property provides adequate security for the mortgage.

We recommend considering additional surveys beyond the basic lender valuation. A homebuyer's survey or building survey can identify potential issues that might affect the property's value or require future repair costs.

Step 8: Get your mortgage offer

Receiving your formal mortgage offer is a significant milestone in your first home purchase. This legally binding document confirms your lender's commitment to provide the agreed mortgage amount, subject to the conditions specified.

Your mortgage offer typically remains valid for 3-6 months, providing sufficient time to complete your purchase. Our mortgage advisors will review the offer carefully with you, ensuring you understand all terms and conditions before proceeding.

Step 9: Exchange Contracts

Contract exchange is when your purchase becomes legally binding. Both you and the seller commit to completing the transaction, and a completion date is agreed. At this point, you'll typically pay a deposit (usually 10% of the purchase price) to the seller's solicitor.

Step 10: Completion & moving into your first home

Completion day is when you finally get your keys and become a homeowner! The remaining mortgage funds are transferred to the seller, final legal formalities are completed, and ownership officially transfers to you.

Our support doesn't end at completion. We'll contact you before your mortgage deal expires to ensure you continue getting the best rates available through remortgaging.

First Time Buyer Mortgage Schemes

Several government schemes exist to help first time buyers get onto the property ladder:

First Homes Scheme - Offers new-build homes for 30-50% less than their market value for eligible first-time buyers in England.

Mortgage Guarantee Scheme - The government has committed to making the Mortgage Guarantee Scheme permanent, allowing first-time buyers to take that crucial first step onto the property ladder with only a small deposit.

Shared Ownership - Allows you to buy a percentage of a property – say 25% and pay rent on the rest, requiring only 10% of the value of the share you buy as a deposit.

These schemes can significantly reduce the barriers to homeownership, making buying your first home more achievable than you might think.

Montgomery Financial FAQ Accordion

Looking for a mortgage broker to help with your first home purchase?

If you're looking for a mortgage broker who specialises in first-time buyer mortgages, Montgomery Financial provides expert guidance throughout the house buying process. Our experienced mortgage advisors understand that the information you need as a first-time buyer can feel overwhelming, which is why we've made the process simple and straightforward. Don't let the mortgage application process daunt you - our team is here to answer every query and guide you every step of the way.

How much stamp duty do first time buyers pay?

First time buyers benefit from significant stamp duty relief in England and Northern Ireland. You'll pay no stamp duty on properties up to £300,000, and for properties between £300,001 and £500,000, you'll only pay 5% on the portion above £300,000. This stamp duty relief can save thousands of pounds compared to other buyers, making homeownership more affordable when you're buying your first home.

What's involved in the house buying process for first time buyers?

The house buying process for first time buyers involves several key stages, from securing your mortgage in principle through to completion. Understanding how much you can afford is the first step, followed by choosing the right mortgage product for your circumstances. You'll need to consider factors like deposit size, mortgage rates, and your long-term financial situation. Our mortgage advisors guide you through each stage, ensuring you have all the information you need to make informed decisions.

What happens after a lender decides to offer you a mortgage?

Once a lender decides to offer you a mortgage, you'll receive a formal mortgage offer outlining the terms and conditions. This document confirms the lender's commitment to provide the agreed mortgage amount, subject to satisfactory property valuation and legal checks. Your mortgage advisor will review the offer with you, explaining all the details so you understand exactly what you're committing to. The mortgage offer typically remains valid for 3-6 months, giving you time to complete your purchase without pressure.

Is getting a mortgage made the process easier with professional help?

Working with experienced mortgage advisors has made the process significantly easier for thousands of first time buyers. Rather than navigating the complex mortgage market alone, you'll have expert guidance throughout the entire journey. Our team liaise with lenders, solicitors, and estate agents on your behalf, managing the administrative burden and ensuring everything progresses smoothly. Many clients tell us that having professional support made the process far less stressful than they initially expected.

What financial services do you provide beyond mortgage advice?

Beyond finding the perfect mortgage for your first home, we provide comprehensive financial services designed to support first time buyers throughout their homeownership journey. This includes life insurance and critical illness cover to protect your mortgage repayments, buildings and contents insurance arrangements, and ongoing remortgage advice to ensure you continue getting the best deals available. We're here to support you long after you get your keys, with regular reviews to optimise your financial arrangements.

Do I need a property survey when buying my first home?

While your lender will arrange a basic valuation, we strongly recommend considering a more detailed property survey when buying your first home. A homebuyer's survey or building survey can identify potential issues that might require future repair costs or affect the property's value. This additional investment provides peace of mind and can potentially save thousands of pounds by identifying problems before you complete your purchase. Your mortgage advisor can explain the different survey options available and help you choose the most appropriate level of inspection.

How long are you typically spending time using mortgage advisor services?

The time using our mortgage advisor services varies depending on your circumstances and the complexity of your application. From initial consultation through to mortgage completion, the process typically takes 6-8 weeks, though this can be shorter for straightforward applications or longer for more complex cases. Throughout this period, you'll have regular contact with your dedicated advisor who will keep you updated on progress and handle all communications with lenders and other parties involved in your purchase.

What information will I need to get a mortgage?

When applying for a mortgage, lenders will want to verify your identity, income, and financial commitments. Essential documents include your passport or driving licence, recent payslips, bank statements from the last three months, and proof of your deposit source. Lenders will ask for additional documentation depending on your circumstances. Self-employed applicants typically need tax returns and accountant's statements, while those with gifted deposits require signed declarations from the gift provider.

How much deposit do I need?

Most lenders will ask for 5-10% of your purchase price, so for example, if you were to buy a home for £225,000, you'd need £11,250-£22,500 deposit for that home. However, there are products called 100% mortgages & 1% deposit mortgages, which means you do not need a deposit as a first-time buyer. This is aimed at helping first time buyers like you get onto the property ladder. They are subject to affordability and credit score as well as evidence but are a brilliant way of getting on the property ladder when a deposit is so hard to save for these days when rents are so high.

How do our mortgage advisors find you the best mortgage?

Our mortgage advisors search the whole of market to compare hundreds of mortgage products from different lenders. This comprehensive approach ensures we find the best mortgages available for your specific circumstances, including exclusive deals not available directly from lenders. We consider factors beyond just the interest rate, including arrangement fees, early repayment charges, and product features. Our goal is to secure you the most suitable mortgage for both your current needs and future plans.

How do I work out what mortgage I can afford?

Affordability depends on multiple factors including your income, existing commitments, and monthly expenditure. Lenders typically offer 4-4.5 times your annual salary, though some may offer more in certain circumstances. Our mortgage advisors conduct detailed affordability assessments, considering your complete financial situation to determine how much you'll be able to borrow. This ensures you don't overstretch yourself financially while maximising your borrowing potential.

What are the different types of mortgages available for first time buyers?

Fixed-rate mortgage: Fixed-rate mortgages offer payment stability with guaranteed interest rates for set periods, typically 2-10 years. This predictability helps with budgeting and protects against interest rate rises during the fixed term. The best fixed first time buyer mortgage rates are usually available for those with a large deposit of 40%, though competitive rates are available across all deposit levels.

Variable-rate mortgage: Variable-rate mortgages fluctuate with market conditions and lender decisions. While potentially offering savings when rates fall, they carry the risk of payment increases if interest rates rise. Some variable products include rate caps or collars for additional protection.

What are the different types of mortgage repayments for first time buyers?

Repayment mortgage: Repayment mortgages involve paying both capital and interest monthly, gradually reducing the outstanding balance. By the end of the mortgage term, you'll own your home outright with no remaining debt to the lender.

Interest-only mortgage: Interest-only mortgages require monthly interest payments only, with the original loan amount remaining unchanged. These products require a credible repayment strategy for the capital at the mortgage term's end and are less commonly available for first time buyers.

Combination of repayment and interest-only mortgages: Some lenders offer part-and-part mortgages, combining elements of both repayment and interest-only structures. This can provide flexibility in managing monthly payments whilst ensuring some capital repayment occurs.

How can I make sure I have a good credit rating?

A strong credit score significantly improves your chances of securing the best mortgage rates. Key factors include maintaining up-to-date payments on all credit commitments, avoiding payday loans and excessive gambling transactions, and keeping credit utilisation low. Registering on the electoral roll, maintaining stable banking relationships, and regularly checking your credit file for errors all contribute to a healthy credit profile. Our mortgage advisors can provide guidance on improving your credit score if needed.

When should a first time buyer get life Insurance?

Life insurance becomes particularly important once you have a mortgage, as it protects your family from having to meet mortgage repayments if something happens to you. Many first time buyers arrange life insurance alongside their mortgage to provide peace of mind and financial protection. Mortgage protection insurance specifically covers your outstanding mortgage balance, decreasing as you pay down the loan. This ensures your family can remain in the home even if you're unable to continue making payments.

ADVICE HUB

Our comprehensive advice hub provides detailed guidance on all aspects of first-time buyer mortgages. From understanding mortgage terminology to navigating government schemes, our resources help you make informed decisions throughout your home-buying journey.

Regular updates ensure our advice reflects current market conditions and regulatory changes affecting first time buyers. Whether you're just starting to consider homeownership or are ready to make an offer, our advice hub supports you every step of the way.

All people working within Montgomery Financial share those values and beliefs and support the reinforcement of the fair treatment of our customers.

The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK

There may be a fee for mortgage advice, the exact amount will be based on your circumstances and will be confirmed upon initial consultation. A typical fee of £476 is payable on application for residential mortgages and £673 for buy to let mortgages.

Montgomery Financial is a trading style of Montgomery FS Ltd, which is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Montgomery FS Ltd is registered in England and Wales no: 12305679. Registered Address: The Granary 8 Strixton Manor Business Centre, Strixton, Wellingborough, NN29 7PA

Your home may be repossessed if you do not keep up repayments on your mortgage.