First-time Buyer Mortgages – Peterborough

Are you a first-time buyer looking for a mortgage in Peterborough? Still, trying to figure out what to expect and need some guidance regarding a first mortgage? Then you’ve come to the right place! Here at Talk Mortgage Broker Peterborough, we can help you on your journey to owning your first home!

What is a first-time buyer?

You are a first-time buyer if:

  • You’ve never owned a residential property either in the UK or abroad, or
  • You only own – or have only owned – a commercial property with no living space attached to it (for example, a pub with upstairs accommodation).

You’re not a first-time buyer if: 

  • You’re buying a property with someone who owns or has previously owned a home
  • You’ve inherited a home, even if you never lived there, and it’s since been sold
  • You’re having a property bought for you by someone who already owns their home, like a parent or guardian.

How much deposit should I put down?

Generally, a first-time buyer is expected to deposit at least 10% of a property’s purchase price. Lenders require a deposit to secure the mortgage and as reassurance that you can afford the financial commitment. 

The more you can save for a deposit, the more equity you’ll have in your first home. You’ll be better positioned to get lower mortgage rates, which might mean cheaper monthly payments.

Which schemes are available to help first-time buyers?

  • Lifetime ISA  – If you’re aged between 18 and 40, the government could add a 25% boost to your savings (up to a maximum increase of £1,000 per year) until you’re 50. 
  • Right to buy  – Also known as the right to acquire, this gives tenants who rent from a council or local housing association the chance to buy the home they live in,
  • First Homes scheme – Available to first-time buyers over 18 years old, this scheme offers new-build homes for 30-50% less than their market value.
  • Shared ownership – Allows you to co-own a property with a landlord (typically a council or housing association).

Which type of first-time buyer mortgage is best for me?

The right type of mortgage for you as a first-time buyer depends on your circumstances. To help you find the right fit, we’ve constructed of the different types of mortgages for first-time buyers:

  • Fixed-rate mortgages – This is when the interest rate on your mortgage is fixed for an agreed time – anywhere between 2-15 years, but most commonly between 2-5 years. A fixed-rate mortgage offers stability so you can budget for a set period. When a fixed-rate term ends, you’ll typically move to the bank’s standard variable-rate mortgage, which tends to have a higher interest rate than other products. This is the perfect time to remortgage by switching your existing mortgage to a better deal.
  • Standard variable rate mortgages (SVRs) – Set at the lender’s introductory interest rate. SVRs don’t come with discounts or reduced interest rates, and the lender can choose to change the rate of interest they charge.
  • Tracker mortgages – have variable interest rates that follow an external rate, typically the Bank of England’s base rate. They don’t match the rates they follow but are set at a certain percentage above or below.  
  • Discount rate mortgages – Similar to tracker mortgages, these track (at a lower level) a lender’s SVR by a set amount. For example, if the SVR is 4% and the discount is 1%, you’ll be charged an interest rate of 3%. But these rates can change, and while the level of discount won’t change, the rate of interest might. 
  • Capped mortgages – These are also linked to the lender’s SVR, but the rate won’t go above a set level. Alternatively, a capped or ‘collared’ mortgage is a type of loan where the interest rate won’t fall below a set limit. These are much less common than other deals.
  • Offset mortgages – These are available to people with a savings account and mortgage with the same provider. They allow you to use your savings to offset the interest you’re being charged on your mortgage, meaning you won’t pay interest on your mortgage to the same value as the savings in your account. The more savings you offset, the more you’ll save in interest, which means your mortgage payments will cost less. Offset mortgages typically allow you to make regular or lump sum overpayments, which can help you pay off your mortgage sooner. These can be more complicated than other mortgages, so you should be careful you understand the financial commitment and the impact any change to your savings (particularly negative changes) can have on your mortgage.

Hopefully, this guide has helped you determine and understand mortgages as a first-time buyer. 

How can a Mortgage Broker from Talk Mortgage Peterborough help me?

Our experienced mortgage brokers will provide you with fully regulated mortgage advice by the most suitable means, whether in person or on the telephone. Openwork’s compliance departments frequently monitor our shared advice to ensure that our brokers deliver the most appropriate advice for every client.

Talk Mortgage Broker has your best interests at heart. Our mortgage brokers will search hundreds of deals from lenders across the country, looking for great rates and exclusive offers whilst also taking into account your financial situation as well as the reliability and reputation of the lender.

Who is Talk Mortgage Broker Peterborough?

At Talk Mortgage Broker Peterborough, we aim to provide you, the customer, with no obligation and helpful advice concerning your mortgage needs. The journey begins with a no-obligation consultation with one of our advisors, who specialise in comparing hundreds of deals to meet the needs of each individual client. Our brokers will assist you with finding the perfect mortgage and applying for it, and then there to congratulate you at the end of the process. Advisors at Talk Mortgage Broker are there for new homeowners, existing ones, those looking to reduce their monthly spending, and professional investors.

Getting the most valuable deal with a first buyer mortgage involves a fair bit of research and comparison. Talk Mortgage Peterborough will do all the legwork for you – we explore your specific situation and find good value deals to meet your needs. We’ll look at rates, fees and criteria to recommend a suitable first buyer mortgage deal.

Contact us today for advice and recommendations on your first buyer mortgage options.

Because we play by the book, we want to tell you that…
Your home may be repossessed if you do not keep up with repayments on your mortgage.