First Time Buyer Mortgages - What You Need To Know

December 18th 2019
By: Thomas Morris

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If you are a first time buyer (FTB) and need to speak to a member of our expert team about your specific requirements, make sure you get in touch with us and book an appointment.

How FTB mortgages work

If you are looking to buy your first home, you have probably spent the last few years saving every penny in order to get your deposit together. So, the next step is to find out how much you can borrow so that you can start the exciting bit – looking at properties.

Your deposit is important at this point; the bigger the deposit, the less you will need to borrow and the more competitive the mortgage rates available to you.

Remember though, it’s not all about the deposit, you will need to have additional funds available in order to pay for fees like property searches, stamp duty, surveys, arrangement fees and solicitors.

First time buyer’s mortgage

When it comes to applying for a mortgage, the lender will assess your affordability based on your annual salary and any other income. This will be lined up against your outgoings, credit cards, loan debts and existing living costs. They will also check your credit history to ensure you are a reliable borrower. It is essentially a risk assessment for the lender – how risky is it to loan to you.

A mortgage provider will usually have a maximum loan to value (LTV) which they are prepared to offer you. This is this is the maximum they will loan you as a fraction of the value of the property.

When to apply for a mortgage

In order to get an idea of what you can afford it’s a good idea to get a mortgage in principle from a couple of lenders. This will help you to search more efficiently and be confident that you can make an offer on a property, when you find the ‘one’.

Mortgage repayments

There are three main types of mortgage which will dictate what your monthly repayments will be.

Fixed rate mortgages – this keeps your monthly repayments at a set amount for two, three or five years. Once the deal has ended you’ll move to the lenders standard variable rate.

Tracker mortgages - this tracks the Bank of England’s base rate which can fluctuate, any change in the BoE’s base rate will be reflected in your monthly payment.

Offset mortgages – if you have a savings account and take a mortgage with the same bank. Instead of your savings earning interest, you wouldn’t be charged interest on that same amount of your mortgage.


You may find that you aren’t in a position to get on the property ladder on your own. A joint mortgage allows you to combine your earning/borrowing power with other people; this might be a family member or a partner. This is common among couples buying their first property together, you can set it up to own equal parts of the property as joint tenants or have unequal shares of the property as ‘tenants in common’.

There are also shared ownership schemes and guarantor mortgages to help people to get onto the property ladder. If you would like to speak to one of our experts about what is best for you book an appointment.

Get in Touch

If you are looking for sound mortgage advice make sure you speak to a member of our team and book an appointment. You can also follow us on Facebook, Twitter, Instagram and LinkedIn for all our latest news.

Embrace Financial Services usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.


Exclusive deals are made available to Embrace Financial Services by PRIMIS Mortgage Network, to which Embrace Financial Services are an Appointed Representative.

Thomas Morris is an Introducer Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products.

Embrace Financial Services Ltd. is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority.