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Financial Services > Mortgages > Information > First Time Buyers > Mortgage Information for First Time Home Buyers in the UK
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Mortgage Information for First Time Home Buyers in the UK

For most people, buying their first home is the most important financial landmark in their life. However, with properties costing tens of thousands or more than the typical annual income, extra help is needed to get onto the property ladder.

Typically, first-time buyers go for properties costing less than £125,000, but the Land Registry of England and Wales shows the average house price in the UK in the last three months of 2010 was £232,628. Similar figures from the Council of Mortgage Lenders covering the second half of the same year show first-time buyers typically had to raise a deposit of £31,500 to buy a property.

Virtually anyone who can raise a deposit and has a stable income can get a mortgage and there's a huge range to choose from. While the abundance of choice can be a good thing, it can also result in a stressful and confusing situation.

We've put together a series of guides to help you get to grips with how to go about searching for the right home and how you can finance it. The section has been broken down into a step-by-step guide that can be found below the form.

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  • Buying a House vs Renting - Is purchasing a house the right decision for you?

  • Borrowing Capacity - Before looking for a house, you have to understand how much you can spend on it. We begin by helping you work out how much you can afford.

  • Searching for a House - We explain how you go about finding the right house, and what factors you should consider when deciding on a property.

  • Paying for it! - Compare the range of mortgage products available from high street banks and financial institutions and find the best borrowing option for you.

  • 10 Tips for the first-time buyer - A few things to consider.

  • How do interest rates affect mortgage repayments? - As a first-time buyer, knowing how much you will have to repay each month and understanding whether you could still afford your mortgage if rates went up is important.

  • Interest only or repayment mortgage? – First-time buyers should be aware of the two basic types of mortgage lending.

  • First-time buyers - mortgage planning - It is essential that there is forward planning to ensure first-time buyers can save enough for a deposit and meet mortgage repayments.

  • First-time buyer shared mortgages - With house prices increasing year on year, first-time buyers are turning to shared mortgages to set foot on the property ladder. What are they and where can you find them?

  • A Guide to the Property Chain - A broken chain is one of the phrases guaranteed to terrify anyone buying their first home. But what is it and what can you do if you are caught in a chain?

  • First-Time Buyer FAQs - Common queries from first-time buyers answered.

Mortgage Types

There is a wide variety of mortgage types on the market. As a first-time buyer, it's best to do your research to understand how each of the products is designed and how they work.

Mortgage Costs and Other Expenses

As a first-time buyer, you need to be aware that there are a number of costs you'll face when buying your first home and taking out a mortgage. These can include mortgage fees and legal costs, as well the lender's valuation and survey costs and many of the following:

Please see our PDF of additional first-time buyer extra mortgage costs.

It is very important to be aware of the interest rate at which the lender will give you a mortgage. This will vary depending on the types of mortgage you choose. For instance, a fixed-rate mortgage will be set at a certain level of interest for a certain amount of time, while a tracker mortgage will go up and down with the index it is linked to which is usually the base interest rate set by the Bank of England.

And while many first-time buyers often don't consider insurance as essential, it does provide peace of mind. In some cases, mortgage lenders will insist that borrowers take out insurance such as:

For a regularly updated first-time buyer news archive, please click here.

You can calculate your monthly mortgage payments with our mortgage calculator.

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