First-Time Buyer Mortgages

Buying your first home is a major step, and for many people the mortgage is the part that feels the most complicated.

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There can be a lot to understand at once: deposits, affordability, mortgage rates, Agreement in Principle, lender criteria, surveys, solicitors and the mortgage application itself.

 

My role is to make that process clearer.

 

I help first-time buyers understand how much they may be able to borrow, what deposit they are likely to need, which mortgage options may be suitable and what happens at each stage of the buying process.

 

Whether you are only starting to think about buying your first home or you have already found a property you would like to make an offer on, I can help you understand your position and move forward with greater confidence.

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Mortgage Advice for First-Time Buyers

 

 

A first mortgage can feel very different from other financial decisions because there are so many moving parts.

 

It is not simply a case of finding the lender offering the lowest interest rate.

 

Different mortgage lenders have different rules around:

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• Income.

• Employment.

• Self-employed earnings.

• Bonuses and commission.

• Credit history.

• Deposit size.

• Property type.

• Existing debts.

• Affordability.

• Length of employment.

• Source of deposit.

 

That means the most suitable mortgage will depend on your individual circumstances.

 

I start by understanding your situation, rather than assuming one lender or one mortgage product will be right for everyone.

 

This gives us a clearer picture of what may be realistic before you begin making important decisions.

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How Much Can a First-Time Buyer Borrow?

 

 

One of the first questions most first-time buyers ask is:

 

How much can I borrow?

 

Mortgage lenders usually assess affordability using a combination of your income and expenditure.

 

Your income may include:

• Salary.

• Regular overtime.

• Bonuses.

• Commission.

• Second-job income.

• Self-employed income.

• Certain other acceptable income sources.

 

Lenders will also look at your financial commitments.

 

These can include:

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• Personal loans.

• Car finance.

• Credit cards.

• Student loans.

• Childcare costs.

• Dependants.

• Other regular commitments.

 

Two people earning the same salary can therefore receive very different mortgage affordability figures.

 

Lenders also use different affordability models.

 

One lender may be willing to lend significantly more than another, even when they are assessing exactly the same applicant.

 

This is one of the reasons speaking to a Mortgage Broker early can be useful.

 

I can help you understand the level of borrowing that may be realistic before you spend too much time looking at properties outside your likely budget.

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Income Multiples for First-Time Buyers

 

 

You may hear people talking about borrowing four times or four-and-a-half times their income.

 

Income multiples can be useful as a rough starting point, but they do not tell the whole story.

 

Mortgage lenders usually carry out a more detailed affordability assessment.

 

Your actual borrowing potential can therefore depend on:

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• Your overall household income.

• Your monthly commitments.

• Your age.

• The proposed mortgage term.

• Your deposit.

• Your credit profile.

• The lender's own affordability rules.

 

Some lenders may be able to consider higher income multiples in certain circumstances, but this is not guaranteed.

 

A more useful approach is to assess your circumstances properly and see which lenders may be suitable.

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How Much Deposit Does a First-Time Buyer Need?

 

 

The deposit you need will depend on the mortgage products available and your circumstances.

 

Your deposit affects your loan-to-value, or LTV.

 

For example:

 

If you bought a property for £250,000 with a £25,000 deposit, you would need a mortgage of £225,000.

 

That would be a 90% loan-to-value mortgage.

 

If you had a £50,000 deposit instead, you would need a £200,000 mortgage.

 

That would be an 80% loan-to-value mortgage.

 

Generally, a larger deposit can give you access to a wider range of mortgage products and potentially more competitive interest rates.

 

However, it is also important not to use every penny you have available as your deposit.

 

You may need money for other costs associated with buying and moving.

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Costs First-Time Buyers Should Budget For

 

 

Your deposit is usually the largest upfront cost, but it is not the only one.

 

Depending on your purchase, you may also need to budget for:

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• Solicitor or conveyancer fees.

• Survey costs.

• Mortgage valuation fees.

• Mortgage product fees.

• Broker fees where applicable.

• Removal costs.

• Buildings insurance.

• Furniture and appliances.

• Repairs or decorating.

• Stamp duty if applicable.

 

It is sensible to think about your overall moving budget rather than focusing only on the deposit.

 

Keeping some emergency savings after completion can also be valuable.

 

Owning a home often comes with unexpected costs that you may not have encountered while renting or living with family.

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What Is an Agreement in Principle?

 

 

An Agreement in Principle is an indication from a lender of how much they may be willing to lend based on the information provided at that stage.

 

You may also hear it called:

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• Mortgage in Principle.

• Decision in Principle.

• AIP.

• DIP.

 

It can be useful because it gives you a better idea of your borrowing position before you make an offer on a property.

 

Estate agents may also ask whether you have an Agreement in Principle when you submit an offer.

 

However, an Agreement in Principle is not a guaranteed mortgage offer.

 

A lender will still need to assess the full mortgage application, supporting documents and the property.

 

It is therefore important to treat it as an indication rather than final approval.

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Should I Get an Agreement in Principle Before Viewing Houses?

 

 

In many cases, yes.

 

You do not necessarily need one before attending your very first viewing, but it is usually sensible to understand your mortgage position before seriously searching for a property.

 

An Agreement in Principle can help you:

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• Understand your approximate borrowing capacity.

• Set a realistic property budget.

• Demonstrate that you have considered your finances.

• Move more quickly when you find a suitable property.

 

It can also reveal potential issues early.

 

If there is something that may affect your application, it is generally better to discover it before you have made an offer.

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The First-Time Buyer Mortgage Process

 

 

Although every purchase is slightly different, most first-time buyer mortgage journeys follow a similar process.

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1. Review Your Finances

 

Before you start seriously looking for a property, it is useful to understand:

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• Your income.

• Your deposit.

• Your regular expenditure.

• Your existing borrowing.

• Your credit position.

• Your likely monthly mortgage budget.

 

This gives us a starting point.

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2. Understand Your Mortgage Options

 

I can then look at how different lenders may assess your circumstances and what level of borrowing could potentially be available.

 

This can help define your property budget.

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3. Obtain an Agreement in Principle

 

Once we have identified an appropriate route, an Agreement in Principle may be obtained.

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This can help when making offers on properties.

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4. Start Viewing Properties

 

With a better understanding of your finances, you can search for homes within a more realistic price range.

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5. Make an Offer

 

When you find a property you would like to buy, you can make an offer through the estate agent.

 

If the offer is accepted, the purchase can move forward.

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6. Apply for the Mortgage

 

The full mortgage application can then be submitted.

 

The lender may ask for documents such as payslips, bank statements and evidence of your deposit.

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7. Mortgage Valuation

 

The lender will normally arrange a valuation of the property.

 

This is primarily for the lender's benefit and is different from a detailed structural survey.

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8. Mortgage Offer

 

If the application and property are acceptable to the lender, a formal mortgage offer can be issued.

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9. Legal Work

 

Your solicitor or conveyancer will continue with searches, enquiries and the legal side of the purchase.

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10. Exchange and Completion

 

Once everything is ready, contracts can be exchanged and a completion date agreed.

 

On completion day, the money is transferred and you receive the keys to your first home.

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What Documents Do First-Time Buyers Need?

 

 

The documents required vary depending on your circumstances and the lender.

 

Common requirements can include:

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• Passport or driving licence.

• Proof of address.

• Recent payslips.

• Bank statements.

• P60.

• Evidence of deposit.

• Proof of additional income.

• Details of existing loans or credit commitments.

 

If you are self-employed, you may need additional documentation such as:

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• Company accounts.

• Tax calculations.

• Tax year overviews.

• Business bank statements.

 

Preparing your paperwork before you find a property can make the process considerably smoother.

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First-Time Buyer Mortgages for Self-Employed Applicants

 

 

Being self-employed does not automatically make getting a mortgage difficult.

 

The key issue is how lenders assess your income.

 

Different lenders may look at self-employed applicants in different ways.

 

A sole trader may be assessed differently from a limited company director, and some lenders may be more flexible than others when considering trading history or income structure.

 

If you are self-employed, I can help you understand what information a lender may require and how your income could potentially be assessed.

 

You can read more on my Self-Employed Mortgages page.

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First-Time Buyers With Bonuses, Overtime or Commission

 

 

Not everybody earns a simple fixed salary.

 

You may receive a significant proportion of your income from:

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• Overtime.

• Commission.

• Bonuses.

• Shift allowances.

• Performance-related pay.

 

Different mortgage lenders may use different percentages of this additional income when calculating affordability.

 

Some lenders may want to see a history of the income, while others may assess it differently depending on how regular it is.

 

This can have a meaningful impact on how much you may be able to borrow.

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Buying Your First Home With a Partner

 

 

Many first-time buyers purchase a property jointly.

 

In a joint mortgage application, lenders may consider both applicants' incomes and financial commitments.

 

Buying together can potentially increase your overall borrowing capacity, but there are also important financial and legal considerations.

 

For example, you should consider how ownership of the property will be structured and what would happen if circumstances changed in the future.

 

Your solicitor can provide legal advice regarding ownership arrangements.

 

From a mortgage perspective, I can help you understand how both incomes and commitments may affect affordability.

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Buying With a Gifted Deposit

 

 

Some first-time buyers receive help from parents or other family members with their deposit.

 

This is commonly referred to as a gifted deposit.

 

Mortgage lenders will usually want to understand where the money has come from.

 

The person providing the deposit may also need to confirm that the money is genuinely a gift rather than a loan that needs to be repaid.

 

Different lenders can have different requirements regarding gifted deposits.

 

It is therefore useful to identify this early in the process.

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Can My Parents Help Me Buy a Home?

 

 

Yes, there are several ways parents or family members may potentially help with a first property purchase.

 

A gifted deposit is one common option.

 

There are also mortgage products and family-assisted arrangements that may be available depending on circumstances.

 

The most suitable structure will depend on factors such as:

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• The amount of help being provided.

• Whether the money is a gift or loan.

• The parents' own circumstances.

• The applicant's affordability.

• The lender's criteria.

 

If family support forms part of your purchase, I can help you understand which mortgage options may be worth exploring.

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First-Time Buyer Mortgages With a Small Deposit

 

 

Having a smaller deposit does not necessarily mean you cannot buy a property.

 

Mortgage products may be available at higher loan-to-value levels, depending on market conditions and lender criteria.

 

However, a smaller deposit can mean:

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• Fewer mortgage products to choose from.

• Potentially higher interest rates.

• Greater sensitivity to property valuation.

• Higher monthly repayments compared with having a larger deposit.

 

I can help you compare the available options and understand whether buying now or saving a larger deposit may be more appropriate for your circumstances.

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Credit Scores and First-Time Buyer Mortgages

 

 

Many first-time buyers worry that their credit score will determine whether they can get a mortgage.

 

Credit history is important, but lenders do not all assess applicants in exactly the same way.

 

They may consider factors such as:

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• Payment history.

• Current debts.

• Credit utilisation.

• Electoral roll information.

• Recent credit applications.

• Missed payments.

• Defaults or county court judgments where applicable.

 

A single credit score shown by a credit-reference app does not necessarily determine the outcome of a mortgage application.

 

Each lender has its own criteria and internal scoring process.

 

If you have concerns about your credit history, it can be sensible to discuss them before applying.

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Should I Pay Off Debts Before Applying for a Mortgage?

 

 

Reducing debt can sometimes improve mortgage affordability, but whether you should repay a particular debt before applying depends on your circumstances.

 

You should consider factors such as:

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• The outstanding balance.

• Monthly payment.

• Interest rate.

• Savings available.

• Deposit requirements.

• Impact on mortgage affordability.

 

Using your entire deposit to clear a relatively small debt may not always improve your overall position.

 

It is worth looking at the numbers before making a decision.

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First-Time Buyer Mortgages on New-Build Properties

 

 

Buying a new-build home can involve slightly different mortgage considerations.

Some lenders apply different loan-to-value limits to new-build properties.

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The length of time between reservation and completion may also affect which mortgage product is suitable.

 

Mortgage offers have expiry dates, so this can be particularly important if the property is still under construction.

 

If you are buying a new-build home, it is worth discussing the expected timescales early.

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Can I Get a Mortgage During My Probation Period?

 

 

Potentially, yes.

 

Starting a new job or being in a probationary period does not automatically prevent you from obtaining a mortgage.

 

Different lenders have different rules regarding employment history and probation periods.

 

Some lenders may be comfortable with an applicant who has recently changed jobs, particularly where the employment is permanent and the career move is logical.

 

Others may have stricter requirements.

 

This is another area where understanding lender criteria can make a significant difference.

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Can First-Time Buyers Get a Mortgage on a Fixed-Term Contract?

 

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Potentially. Mortgage lenders can consider fixed-term contracts, but criteria vary considerably.

 

They may consider:

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• The length of the current contract.

• Previous contract history.

• Time remaining on the contract.

• Employment sector.

• Gaps between contracts.

 

The correct approach will depend on your individual circumstances.

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Choosing a Mortgage Term

 

 

Mortgage terms are often discussed in periods such as 25, 30, 35 or even 40 years.

 

A longer mortgage term can reduce your monthly repayment because the balance is being repaid over a longer period.

 

However, it can also increase the total interest paid over the life of the mortgage.

 

A shorter term can mean higher monthly payments but potentially less interest overall.

 

The appropriate mortgage term should therefore take account of both affordability today and your longer-term financial plans.

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Fixed-Rate or Variable Mortgage?

 

 

One of the choices you may need to make is between different mortgage interest-rate structures.

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Fixed-Rate Mortgage

 

With a fixed-rate mortgage, your interest rate remains fixed for an agreed period.

 

This can provide certainty because your mortgage payment will generally remain the same during the fixed period.

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Variable-Rate Mortgage

 

With a variable mortgage, your rate can change.

 

Some variable products may track a particular interest rate or lender rate.

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Which option is more suitable will depend on your circumstances, attitude to changing payments and the products available at the time.

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Should I Choose the Mortgage With the Lowest Interest Rate?

 

 

Not necessarily. The headline interest rate is important, but it is only one part of the cost of a mortgage.

 

You should also consider:

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• Product fees.

• Valuation fees.

• Cashback.

• Incentives.

• Early repayment charges.

• Mortgage term.

• Initial deal period.

• Reversion rate.

• Total cost over the period you expect to hold the mortgage.

 

A mortgage with a slightly higher interest rate but a much lower fee could potentially work out cheaper for some borrowers.

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This is why comparing the overall cost is important.

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Why Use a Mortgage Broker as a First-Time Buyer?

 

 

When you have never bought a property before, having someone guide you through the process can be particularly helpful.

 

I can help with:

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• Understanding affordability.

• Reviewing mortgage options.

• Explaining lender criteria.

• Obtaining an Agreement in Principle.

• Preparing your mortgage application.

• Understanding what documents are required.

• Communicating throughout the mortgage process.

• Explaining what happens next.

 

It also means you do not have to try to interpret the criteria of multiple lenders yourself.

 

You can read more about how I work on my Mortgage Broker page.

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First-Time Buyer Mortgage Advice Across Manchester and Cheshire

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I help first-time buyers across Manchester, Cheshire and surrounding areas.

This includes people buying their first home in locations such as:

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• Altrincham.

• Hale.

• Hale Barns.

• Bowdon.

• Sale.

• Didsbury.

• Wilmslow.

• Alderley Edge.

• Prestbury.

• Knutsford.

• Mobberley.

• Handforth.

 

Each local housing market is different.

 

Your mortgage requirements may also change depending on the type and price of property you are looking to purchase.

 

I can provide mortgage advice remotely as well, so you do not need to live locally for me to help.

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Common First-Time Buyer Mistakes

 

There are several mistakes that are worth trying to avoid when buying your first property.

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Looking at Properties Before Understanding Your Budget

 

It is easy to become attached to a property before you know whether the mortgage is realistic.

 

Understanding affordability first can save considerable disappointment.

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Taking Out New Credit Before Applying

 

Taking out car finance, loans or other significant credit commitments shortly before a mortgage application could affect affordability.

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Using Every Penny for the Deposit

 

Remember that you may need money for legal fees, surveys, moving and unexpected expenses.

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Applying to Multiple Lenders Without Checking Criteria

 

Different mortgage applications can leave searches on your credit record.

 

It is usually better to understand which lender may fit your circumstances before submitting applications.

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Focusing Only on Interest Rate

 

Fees and other mortgage features can significantly affect the overall cost.

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Changing Jobs Without Considering the Mortgage

 

Changing employment does not necessarily prevent you from obtaining a mortgage, but it can change which lenders are suitable.

 

If you are considering a major change while buying, it is worth discussing it beforehand.

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First-Time Buyer FAQs

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How much deposit do I need as a first-time buyer?

 

The amount will depend on the mortgage products and lender criteria available when you apply. A larger deposit may provide access to a wider choice of mortgage products, but higher loan-to-value mortgages may also be available.

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How much can I borrow?

 

This depends on your income, financial commitments and the lender's affordability assessment. Different lenders can produce different results for the same applicant.

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Can I get a mortgage with a 5% deposit?

 

Higher loan-to-value mortgages may be available depending on lender criteria and market conditions. Your eligibility will depend on your individual circumstances.

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Do I need an Agreement in Principle?

 

It is not always essential before viewing a property, but having one can give you a clearer idea of your borrowing position and may help when making an offer.

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How long does a first-time buyer mortgage take?

 

Timescales vary depending on the lender, property and complexity of the application. Getting your documents organised before applying can help reduce avoidable delays.

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Can I get a mortgage if I have only just started a new job?

 

Potentially. Different lenders have different rules about new employment and probation periods.

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Can I get a mortgage if I am self-employed?

 

Yes. Many lenders offer mortgages to self-employed applicants, although they may assess income differently.

 

You can read more on my Self-Employed Mortgages page.

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Can my parents give me my deposit?

 

Many mortgage lenders accept gifted deposits, subject to their criteria and the appropriate evidence being provided.

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Should I use a mortgage broker?

 

A broker can help you understand affordability, lender criteria and available mortgage options while guiding you through the application process.

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Ready to Buy Your First Home?

 

Buying your first home should be exciting.

 

The mortgage process does not need to feel overwhelming.

 

Whether you are months away from buying or have already found a property, I can help you understand what may be possible and what you need to do next.

 

We can look at your deposit, income, monthly commitments and likely borrowing capacity before exploring mortgage options that fit your circumstances.

 

If you are thinking about buying your first home, get in touch and we can start with a conversation about where you are now and where you would like to get to.