Mortgages for First Time Buyers

One of our principal high street lenders has opened the door a little wider to help first time buyers who are struggling to raise the deposit for their new home and also where their incomes may not allow them to borrow what they need to raise on mortgage.

The lender is launching from the 28th of October a joint borrower sole proprietor  ( JBSP ) plan for new and existing customers. This will mean that the lender will accept up to four applicants on a mortgage with non- proprietors able to opt to be on the title or not. The proposal will be available up to 95% LTV with the added benefit of a potential of a 35year term if required to fit affordability.

This is a fantastic way of parents, grandparents,

guardians, friends or family being able to support would-be first-time buyers.

With the mortgage market currently being quite flat in most parts of the country, this is an excellent time to look at making that first purchase with the added bonus of the opportunity to purchase at below market value.

Do not miss out, once Brexit has been resolved we will be looking at a return to the property market we have come to know with property prices on the rise each year.

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Mortgages for First Time Buyers

Since 2007 when the down turn in the property markets first started to bite and we saw the usual flood of repossessions and clients getting in financial difficulties, first time buyer schemes became a product that very few lenders wanted to offer. We had become used to mortgages being available up to 125% of the purchase price, which the lenders could market with some degree of safety in a rising market, because within the first year of the mortgage term most of these products were back into positive equity.

When the market changed to being flat and then negative, many of the lenders who had been pushing the boundaries with product innovation started to catch a very bad cold and the rest as they say is history.

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Getting a Mortgage as a First Time Buyer with a Bad/Poor Credit Profile now at 95% LTV

The great news for first time buyers is that our specialist lenders have listened to the feed back from brokers and have will now look at applications with a less than perfect credit profile at 95% LTV. This is a very positive move by our lenders, as for most first time buyers finding a 5% deposit in todays market is not easy, and many clients are relying on the Bank of Mum and Dad to help them put a deposit together, which most lenders will now accept.

It goes without saying that the bigger deposit you have, means less risk for the lender and the terms would reflect this.

The two other main options would be  SHARED OWNERSHIP or the Help To Buy Equity Loan plan.

The other very positive news for first time buyers and home movers is the Government Help To Buy Equity Loan Scheme for New Build Property Only where you, the client, put in a minimum deposit of 5% and the other 20% is paid by the Government. The beauty of this scheme is that we have lenders who will accept a bad/poor credit profile and you get the terms that relate to a 75% LTV mortgage product.

Who is eligible?

Equity loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000.

You won’t be able to sublet this home or enter a part exchange deal on your old home. You must not own any other property at the time you buy your new home with a Help to Buy: Equity Loan.

How to apply

The Help to Buy: Equity Loan scheme is run by Government-appointed Help to Buy agents. They can guide you through your purchase, from providing general information about the scheme to dealing with your application.

Or look out for the Help to Buy logo on new-build developments and ask about the scheme there.

You can get more help and advice from the Money Advice Service and other useful contacts.

Find your local Help to Buy agent

Your local Help to Buy agent can guide you through the options available and explain the eligibility and affordability criteria. Help to Buy agents are appointed by Homes England.

Help to Buy agents administer the Help to Buy: Equity Loan scheme but not the mortgage guarantee scheme. They have the authority to give the go-ahead for you to purchase a home with help from the equity loan scheme. The agents make other key decisions during the purchase process. For the Help to Buy: Mortgage Guarantee, please contact the participating lenders directly.

Useful contacts

Buying your home can be an exciting time. It can also be a daunting process during which you will need expert help and advice.

There are a number of organisations who provide free and impartial advice and can help point you in the right direction. Below you will find information about where to get the advice you’ll need.

Finance Matters

The Money Advice Service is an independent organisation set up by the Government. It has a range of free and unbiased tools and advice for first time buyers, including how much you can afford to borrow, taking out a mortgage, and a money timeline.

Tel: 0300 500 5000

Buying a leasehold property

The Leasehold Advisory Service (LEASE) is funded by Government to provide free advice on the law affecting residential leasehold property.

Tel: 020 7832 2500

Stamp duty

For information on Stamp Duty and the latest rates look at:

Arranging a survey

Visit the Royal Institution of Chartered Surveyors (RICS) website:

To find a surveyor in your area visit

For guides visit

Legal matters

For your local Citizens Advice Bureau visit

For help in finding a solicitor, contact The Law Society

Tel: 020 7320 5650


Help to Buy

The overall cost for comparison is 5% APR. The actual rate available will depend on your circumstances. Ask for a personalised illustration.