Key Considerations When Comparing First-Time Buyers Mortgage Rates
There are several ways to approach your mortgage, depending on the currently available first-time buyers mortgage rates and whether you already have a first-time buyer new build property in mind.
Lenders will offer the best first-time buyers mortgage rates to applicants with deposits of 15% or above. Still, it's important to consider the affordability and eligibility criteria each lender applies – which depend very much on their policies.
In essence, the less of a percentage you need to borrow on a first-time buyer mortgage, the better the first-time buyers mortgage rates you'll be eligible for, but using a government first-time buyer scheme may also make a difference to the lenders whose products you can apply for.
How to Improve Your Mortgage Prospects to Buy a First-Time Buyer New Build
If your heart is set on a newly built property, but you've found that the expected depreciation means you can't borrow as much as you need to, or your deposit doesn't qualify you for the best first-time buyers mortgage rates, you might consider some of the support schemes that may be useful.
We’ve summarised some of the popular government first-time buyer scheme options that may be relevant to new-build property purchases.
Using First Homes to Buy a First-Time Buyer New Build
First Homes is one of the newest government schemes for first-time buyers, which offers discounts from 30% to as much as 50% on the cost of buying a newly built property. The home cannot be sold for over £250,000, or £420,000 in London, representing a good opportunity for a first-time home buyer UK.
Eligible first-time buyer applicants can include low-income borrowers, local residents and key workers with a household income of up to £80,000, or £90,000 in London.
Applying for a Shared Ownership First-Time Buyer Mortgage
Shared Ownership is a government first-time buyer scheme that allows buyers to purchase from 25%, and sometimes 10% of a property, with a staged acquisition process to help a first-time buyer new build applicants increase their ownership proportion over time.
Once you have secured a first-time buyer mortgage, you then pay a nominal rent on the balance owned by the housing association on the proportion they continue to own.
First-time buyer new build applicants to Shared Ownership need a minimum deposit of 5%, based on the purchase value, and will still need a first-time buyer mortgage to cover the borrowing.
The Benefits of a Broker to Help Secure a Mortgage on a First-Time Buyer New Build
Purchasing a first-time buyer new build can be a great option for several reasons, not least a more energy-efficient and well-made property that is eligible for some of the best government schemes for first-time buyers.
However, as with any first-time home buyer UK mortgage, it’s essential to review your circumstances, such as income, deposit value, the total amount you wish to borrow, and even property location, to determine whether you can benefit from any of the many first-time buyer mortgage schemes.
As a whole-of-market, independent broker specialising in helping new buyers secure the best possible first-time buyers mortgage rates, Revolution Finance Brokers can help by:
- Signposting the right government schemes for first-time buyers that can help you grow your deposit and accumulate your savings to reduce your LTV on a first-time buyer new build and lock in more competitive interest rates.
- Helping you find the right lender with the first-time buyer mortgage products best aligned with your borrowing needs, whether you're purchasing through a government first-time buyer scheme or looking to borrow as much as you can against your current income.
- Comparing every first-time buyer mortgage in the market, with whole-of-market access to consider niche first-time buyer new build options that may not be available to the general public.
Our accomplished first-time buyer new build experts can provide confidential, independent guidance to improve your prospects of securing a first-time buyer mortgage without paying over the odds for a first-time buyer new build borrowing deal.
