Our best buy tables are a great starting point to give you an idea of what rates are available, but to find out which deals you actually qualify for use our Online Mortgage Finder or speak to one of our expert advisers. Whichever one you choose you’ll benefit from our expert help and support throughout the entire mortgage process.
When compiling our first time buyer best buy tables we compare the best first time buyer mortgage rates from across the UK market, including deals that are exclusive to us. It's important to remember that the best first time buyer mortgage deals are not necessarily about getting the lowest mortgage rate possible, you also need to take into account all the fees and charges associated in setting up your new mortgage deal.
By choosing L&C to find your next first time buyer mortgage deal our advisers will research the market for you, looking at criteria, set up fees and the rate to help you compare the best first time buyer mortgage deal for your circumstances, saving you time and effort. Our best buy tables above show you the first time buyer mortgage deals currently available, both fixed rates and variable rates, whether you are looking to purchase or remortgage to a better deal.
After taking out a first time buyer mortgage or another financial product, 93% of L&C customers would recommend us based on 1355 Reviews.co.uk respondents - as of 02/04/19. Read our reviews
Getting onto the property ladder can seem daunting unless you have the right advice and guidance.
You’ll need to work out if you’re eligible for a mortgage and how much you can borrow, as well as which type of mortgage to go for and how much it’s going to cost you.
The good news is that it’s easy to get started with your first mortgage with L&C’s online Mortgage Finder. All you need to do is enter your details, including how much you want to borrow and how big a deposit you’ve got to put down and the Mortgage Finder will show you all the deals you are likely to qualify for.
Applying for your first mortgage with L&C can help save you time, money and hassle.
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You must be aged at least 18 to apply for a mortgage as a first time buyer.
When you submit your application, lenders will look closely at how much you earn. They will also want to know about all your outgoings, such as any loan or credit card repayments, and the amount you spend on things like travel, food and utilities. If you can reduce unnecessary outgoings before you make an application, it could boost your chances of being accepted.
They will check your credit history too, which shows how you’ve managed debts in the past. If you’ve been late with or have missed any payments this might have affected your credit score and may mean your mortgage application is refused. You can find out about this in our guide How does your credit score affect your ability to get a mortgage?
There are lots of different mortgage options to choose from, so it’s worth weighing up the pros and cons of each before deciding which one to go for.
Find out more about the various kinds of mortgage you can choose from in our guide Different types of mortgage explained.
Before you choose your first mortgage, there are a few initial steps you need to take.
Remember too that if you’re struggling to get onto the property ladder, there are Government schemes available that may help.
Hopefully you’ll now have a clearer idea of which type of mortgage you want and the sort of information lenders will want to see when you apply for a mortgage.
Whether you want a fixed or variable deal, our online Mortgage Finder searches over 90 lenders’ deals on your behalf, which means finding and applying for your first time buyer mortgage needn’t involve filling out lots of mortgage enquiries for different mortgage providers.
Our experts will advise you on the best deal for you, and once you’ve applied for your mortgage, you can then track your application online 24/7 so you know exactly how it’s progressing.
Begin your online mortgage journey using our Mortgage Finder.
First time buyer mortgages are designed to help those who are trying to get onto the property ladder. They might be available to people with only a small deposit (typically 5% of the property value) to put down, or they might offer cashback to help cover costs.
Find out more about first time buyer mortgages
The loan to value ratio is a term used by lenders to express how big a mortgage they are prepared to offer you in relation to the value of the property you are buying. For example, if a lender offers a first time buyer mortgage with a 95% LTV, this means they will lend you up to 95% of the property value.
100% mortgages used to be more widely available to first time buyers, but today most lenders now require a minimum deposit of at least 5%.
There are deals available which don’t require first time buyers to have a deposit, but parents or other family members must usually agree to put down a percentage of the purchase price of the property into a savings account, or provide other security for the mortgage.
A 95% mortgage allows you to borrow 95% of the property value.
You therefore need to save a 5% deposit to qualify. For example, if you’re buying a property costing £200,000, you’ll have to put down a deposit of at least £10,000.
The most common costs associated with getting a first mortgage are:
However, sometimes lenders offer to cover some of these costs, so depending on which deal you choose, you may not have to pay all of these. Read our guide to the costs of buying a house to find out more.
There are several Government schemes available to help first time buyers get onto the property ladder. The Help to Buy equity loan scheme in England, for example, enables first time buyers to put down a 5% deposit, and the Government will then lend a further 20% (40% in London) of the property price interest-free for the first five years.
There are also schemes to help first time buyers save up a deposit, such as the Lifetime ISA, with the Government topping up contributions made into these accounts by 25%. Find out more about how these schemes work in our Guide to government schemes for first time buyers.
A minimum 5% deposit is usually needed to buy your first home. However, if you can save more than this, you’ll have access to a wider range of mortgages at more competitive rates. Find out more about deposits in our guide How much deposit do I need to buy a house?
With a repayment mortgage, you pay back some of the capital you owe as well as interest each month. An interest only mortgage, as the name suggests, involves only paying back the interest. The capital must be repaid at the end of the mortgage term, so it’s essential to have a clear plan as to how you’ll save up enough to do this.
Finding the right mortgage for you can be challenging, especially with so many different deals to choose from. A mortgage broker can advise you on the available options and help you find the best deal based on your individual circumstances. They’ll also help you through the application process, ensuring everything runs smoothly. Learn more in our guide What does a mortgage broker do?
Comparing mortgages isn’t easy. Sometimes deals look attractive because they have a low initial rate, but you also need to take into account any fees that come with the mortgage deal. We recommend annual cost as the best way to see which mortgage deal offers the best value for the size of mortgage you’re looking to take.
This is how we calculate the annual cost:
By comparing mortgage deals looking at annual cost you can see which one would be cheapest for you taking into account fees as well as the interest rate. The annual cost only applies to the initial deal as its always best to consider switching once the initial deal is over to see if you could save money.
This is the representative APRC provided by the lender
Who is lending the money and what sort of mortgage is it.
The rate you will pay at the start of your mortgage.
Your monthly payment when your mortgage starts, based on the loan amount you entered.
The total of the lender's booking, arrangement and valuation fees.
The annualised cost of this mortgage.