5 Mortgage Tips for First-Time Buyers: Mortgage Advice from Independent Financial Advisers
With mortgage rates anticipated to fall in the coming year, more people may finally be able to realise their dream of homeownership. For first-time buyers, however, knowing where to start can be overwhelming. Fortunately, there are several ways to build a deposit and access the property market.
Whether you’re seeking guidance on the best mortgage route or looking to understand how to maximise savings, speaking with an independent financial adviser can make all the difference. Here’s a guide to five top strategies for those taking their first steps onto the housing ladder.
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1. Start Saving Early
The average deposit for first-time buyers now exceeds £34,000, so the earlier you start saving, the better. One of the most effective tools is the Lifetime ISA, which rewards savers with a 25% government bonus—up to £1,000 per year on a £4,000 contribution.
Many savers begin using a Lifetime ISA from the age of 18, potentially accumulating over £22,000 in bonuses by age 30. Family members can also contribute, but it’s essential to remember the funds must be used toward a first-time home valued up to £450,000.
An independent financial advisor can help you assess the best savings plan for your goals and ensure you’re on track to benefit from schemes like this while keeping fees low.
📅 Looking to maximise your savings potential? Book a meeting with a certified adviser today.
2. Consider Low-Deposit Mortgage Options
Low-deposit mortgages are making a comeback, with some products requiring as little as 5%—and even 0% in some specific cases. These can be a game changer for buyers without substantial savings.
Some lenders now offer 95% loan-to-value mortgages, while others go as far as 99% or even 100%, provided applicants can demonstrate a consistent history of rent payments. While these deals can be appealing, they often come with higher interest rates and stricter eligibility rules, especially for the self-employed.
Before jumping in, it’s wise to find a financial adviser who can help you navigate the range of available deals and determine whether a low-deposit mortgage is the best fit for you.
📅 Book a meeting with an adviser to explore your mortgage options with low fees and top guidance.
3. Explore Shared Ownership
Shared ownership schemes are a long-standing option that can reduce the cost barrier to buying a home. They allow first-time buyers to purchase a share—typically between 25% and 75%—of a property and pay rent on the remaining portion.
This approach lowers the initial deposit and mortgage requirements and allows buyers to increase their ownership share over time—a process known as “staircasing.”
While commonly associated with younger buyers, shared ownership is increasingly being used by people in their 40s and 50s, especially those re-entering the property market. An independent adviser can provide valuable insight into shared ownership eligibility and potential benefits.
📅 Interested in shared ownership? Book a meeting with a financial adviser to learn more.
4. Look Into Income Boost Mortgages
If the Bank of Mum and Dad isn’t an option, income boost mortgages—also known as Joint Borrower Sole Proprietor (JBSP) mortgages—might offer a practical solution. These allow family members or friends to help you increase your borrowing capacity without becoming co-owners.
This can be especially beneficial for younger buyers earlier in their careers who haven’t yet reached their full earning potential. Keep in mind, however, that those joining the mortgage will be equally responsible for repayments should anything go wrong.
A certified adviser can assess whether this route suits your financial circumstances and future plans.
📅 Book a meeting with an adviser to see how an income boost mortgage could work for you.
5. Professional Mortgages for Specific Careers
Some lenders offer tailored mortgage products for professionals in fields like teaching, medicine, and law. These “professional mortgages” often allow for borrowing up to six times your income and can factor in things like overtime or income from secondary jobs.
If you’re in a recognised profession with stable career prospects, this could be a way to increase your affordability without compromising on mortgage terms. However, it’s vital to consider the overall cost, as some of these mortgages may carry slightly higher rates.
To ensure you’re getting the best service and value, always consult an independent financial adviser who can compare offerings and help you make an informed decision.
📅 Work in a professional field? Book a meeting with a certified adviser to find the best mortgage fit.
Get Expert Advice That Works for You
First-time buyers face a unique set of challenges, but with the right advice and tools, getting onto the property ladder is absolutely achievable. From finding the best low-deposit options to unlocking shared ownership and professional mortgage benefits, an experienced financial advisor can guide you every step of the way.
Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom. Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand.
