Feeling stressed about buying your first home? You’re not alone. With the average first-time buyer now 30 years old, getting a mortgage can be tough. But don’t worry—Mortgage Knight is here to make it easier.
We specialise in finding the right mortgage for you, no matter your situation. Our advice is completely free, so there’s no better place to start your home-buying journey.
Let us help you find the perfect mortgage and make your dream home a reality.
When you’re buying your first home, the size of your deposit can significantly impact your mortgage options and the rates you’re offered. Here’s a breakdown of what to consider:
You’ll typically need at least 5% of the property’s price. This means you’ll have a high loan-to-value (LTV) ratio of 95%, which can limit your choice of mortgage deals and might lead to higher interest rates.
Saving 10% gives you access to a wider range of mortgage products and better rates. It reduces your LTV ratio and shows lenders you’re a lower-risk borrower.
With a 15% deposit, you’ll improve your chances of securing even more competitive mortgage rates and terms. This deposit size indicates to lenders that you have a strong financial position.
A deposit of 20% or more not only opens doors to the best rates available but also significantly reduces the amount of interest you’ll pay over the life of the mortgage. It lowers your LTV and makes you a more attractive borrower.
While rare, it’s sometimes possible to buy a property with no deposit by taking out an additional unsecured loan. However, this approach requires proving you can manage two loan repayments and may involve stricter conditions.
Absolutely! While some lenders may be cautious about lending to first-time buyers, many are eager to help you get started on the property ladder. As long as you meet their basic criteria—such as having a steady income, a decent deposit, and a good credit history—you’re in a strong position.
In fact, being a first-time buyer can work in your favour. Without a property to sell, you can make swift decisions and move quickly, making you an attractive option for sellers. At Mortgage Knight, we’re here to guide you through every step and ensure you secure the right mortgage for your new home.
When you’re ready to buy a property, it’s crucial to consider both the type of property and its condition. Lenders are more likely to support mortgages for homes in good condition with standard construction.
However, properties in disrepair, non-standard constructions, or those with thatched roofs and listed status might pose challenges.
Some niche lenders are open to these types of properties, but it’s essential to know the specifics before applying.
Your monthly mortgage payments will depend on a few key factors:
The more you borrow, the higher your monthly repayments.
Higher rates will increase your monthly costs.
A longer-term reduces monthly payments but increases the total amount of interest paid over the loan’s lifetime.
Typically, a standard mortgage term is 25 years, though many lenders offer terms up to 35 years. While a longer term means lower monthly payments, it also means you’ll pay more interest in total.
Using a mortgage calculator can help you determine what’s manageable, but if you prefer expert assistance, our brokers at Mortgage Knight are here to guide you through every step.
No hidden fees; we offer free consultation & guidance, so our success depends on finding you the best deal.
Access a range of mortgage products and schemes with deposits starting from just 5%.
Enjoy a single point of contact who knows your application inside out and is with you every step of the way.
For most mortgages, you’ll need at least 5% of the property’s purchase price as a deposit. Saving more, like 10% or 20%, can give you access to better mortgage rates and terms. Some schemes, like Help to Buy, may allow you to put down less
Even with a poor credit score, you might still be able to get a mortgage. It’s important to work on improving your credit score before applying. Specialist lenders and adverse credit mortgages are available for those with less-than-perfect credit histories.
Your borrowing amount depends on your income, outgoings, debts, and credit history. Lenders typically multiply your annual income by 4 to 5.5 times. Use a mortgage calculator to estimate your borrowing potential or consult with a mortgage broker for tailored advice.
Mortgages for properties in disrepair or with non-standard construction can be challenging. Mainstream lenders might be hesitant, but niche lenders may offer suitable deals. We can help you find the right lender and explore the best options based on your property’s condition.
The mortgage process usually takes from 1 day to 2 weeks if all documents are in order and valuations are completed promptly. Having your paperwork ready and responding quickly to requests can help speed up the process.
In addition to the deposit, you should budget for stamp duty, solicitor’s fees, mortgage arrangement fees, and valuation fees. Don’t forget to include insurance costs to protect your new home and investment.
