First time buyer mortgages

2nd Feb, 2016

After the great economic downturn of 2007, mortgage lenders began tightening up on mortgage approvals, making it harder for some first time buyers to buy a home. Since 2009, the Bank of England have kept interest rates low at 0.5%.  In January 2016 it postponed yet another interest rate rise with expectations of an increase in the base rate not forecast until mid-2017. This is good news for borrowers and therefore first time buyers looking to secure a mortgage.

Good first time buyer mortgage offers

With interest rates still at an all-time low there are some great mortgage offers available, fixing your mortgage for the first few years gives you additional peace of mind and helps you budget, giving you a much greater handle on your monthly outgoings.  Here’s our round up of the top 5 mortgages available to First Time Buyers.*

Yorkshire Building Society: 2yr Fixed at 1.17% until April 2008 then 4.99% (Max 65% LTV)
Post Office Money: 2yr months Fixed at 1.18% then 4.49% (Max 60% LTV)
Norwich & Peterborough Building Society: 2yr Fixed at 1.18% then 4.99% (Max 60% LTV)
First Direct: 2yr Fixed at 1.19% then 3.69% (Max LTV 60%)
First Direct: 2yr Fixed at 1.29% then 3.69% (Max LTV 75%)

*Offers correct as of January 2016. Source:,

Mortgages for First Time BuyersHelp to Buy

More good news is that thanks to the Government-backed Help to Buy scheme, first time buyers are now in a position to get onto the property ladder much more swiftly. As little as 5% deposit is required when taking out an equity loan of up to 20% (40% in London as of February 1st 2016) meaning that the mortgage amount required is smaller.  A smaller loan makes for an easier approval. The more deposit you have available, the better the rates. This is where a Help to Buy: ISA can also assist, with the Government contributing an additional 25% towards your savings, for free, enabling you to reach your deposit target faster. Try our Help to Buy calculator to get an idea of the mortgage amount you’ll need.

How to improve your chances of getting a mortgage

The best rates in town aren’t going to mean much if, as a first time buyer you don’t meet the lender’s strict criteria.  See our Top 5 Tips below to help your mortgage application go a little smoother.

Ensure you are on the electoral roll
Check your credit score before applying for a mortgage
Pay all bills on time, every time
Ensure any previous bad credit linked to ex-partners is no longer linked to your name
Manage any existing credit well, close any old unused accounts and don’t apply for any more credit before you apply for a mortgage

Our First Time Buyer’s Guide is also a fantastic resource packed with handy take-aways like what questions to ask when buying a house.

If you have any questions or recommendations regarding getting a first time buyer mortgage please comment below.

Lovell Homes uses 40 years’ experience to bring unique designs to every development, ensuring our homes work perfectly in their environment whilst keeping our focus firmly on the people who will be calling our properties ‘home’.  From first time buyers searching for an affordable new home to growing families or down-sizers, we offer brand new homes with exceptional quality, style and value throughout the UK. We are committed to sustainable development and strictly adhere to the Consumer Code for Housebuilders.

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Posted by: Lovell Homes