First-Time Buyer Mortgages
Helping you take your first step onto the property ladder
Start your journey to your first home
Your first mortgage is one of the biggest commitments you will ever make, and many first-time buyers find the process daunting, but it doesn’t have to be.
At Jordan Lynch, we have a specialist team of First Time Buyer advisors that are here to help you every step of the way. Not only will we advise you on the best mortgage available from the whole market, we also guide you through the whole house buying process. We will liaise with all professional parties including, estate agent, lender and solicitor so that the process runs as smooth and as stress free as possible.
We’ve answered the questions you might have
How much deposit do I need?
Typically, first-time buyers are required to contribute a minimum deposit of 5% to purchase a property. However, interest rates are relatively high when borrowing at this level. For this reason, most first-time buyers aim to put down a 10% deposit as the interest rates are generally at least 1% lower when borrowing at 90% LTV (loan to value).
How much can I borrow?
This depends on a number of variables including the size of your deposit, your age and most notably your income. Why not use our online calculator to obtain an estimate of how much you can borrow?
Please note this is for illustrative purposes only and we will only be able to confirm the precise amount you can borrow after we have completed a client fact find.
How much will my monthly payments be?
This is a good question because it is important to choose a mortgage that you can comfortably afford. The monthly repayments will depend on how much you borrow, the number of years you wish to borrow the money for and the interest rate payable.
Use our mortgage cost calculator for an estimate of how much you will pay each month.
What is Stamp Duty and how much will I pay?
Stamp Duty is a tax levied on property purchases by the Government. The rates payable vary depending on the purchase price. Use our ‘Stamp Duty’ calculator to work out how much you will pay.
The good news is that most first-time buyers are exempt from paying this tax as the UK Government waives it on purchases below £300,000.
How do I apply for a mortgage?
The first step is obtaining a mortgage agreement in principle from your chosen lender. This tells you how much they are willing to lend you, based on the information that you provide. Typically, Jordan Lynch can obtain an agreement in principle on your behalf within a few hours, this will then allow the property search to commence!
When you have found the perfect home, we will submit a full mortgage application to the most appropriate lender. Upon application an underwriter will look at the documentation provided, such as pay slips and bank statements. This is a more in-depth look at your personal and financial position, a property valuation is also normally booked in at this stage. Once the lender is satisfied with all aspects of the case, a binding mortgage offer will then be issued.
What other costs are involved with buying a home?
Stamp duty is a form of tax that becomes payable when you purchase land or property in England or Northern Ireland. If you are purchasing in Scotland this is referred to as Land and Building Transaction Tax and in Wales Land Transaction Tax.
For a first-time buyer purchasing a property £500k and under, you won’t pay any stamp duty of the first £300k. Between £300k – £500k you will pay 5%.
A first-time buyer is someone who’s never owned a property, whether bought or inherited, anywhere in the world.
If you fall outside of the above definition, then the following would apply:
|Band||Normal rate||Additional Property|
|less than £125k||0%||3%|
|£125k to 250k||2%||5%|
|£250k to 925k||5%||8%|
|£925k to £1.5m||10%||13%|
|rest over £1.5m||12%||15%|
* An additional property purchased for less than £40k will attract 0% tax. For purchases from £40k to £125k the rate will be 3% on full purchase price.
To get a mortgage you will need a minimum 5% deposit, for example on a property worth £150k you would need a deposit of £7500.
Mortgage application and product fees
These vary and can generally be added to your loan.
Some lenders charge a valuation fee upfront before committing to lending you the money.
Optional Homebuyer’s Report or Full Structural Survey
You may decide to pay for a more detailed survey on the property. This is for your own peace of mind and comments on any future maintenance or works that may need doing.
There will be a solicitor’s fee plus the Land Registry charge and a fee to transfer the money.
Hiring a van, hiring help, buying packaging materials etc.
Building and contents insurance
It is a condition of your mortgage to have adequate buildings insurance in place, buildings insurance covers the cost of rebuilding your home if it’s damaged. We can offer you a quote from our panel of 5 star defaqto rated insurer’s