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Purchasing your first home in the UK is a significant life milestone — and an exhilarating one! But mortgages can get complicated — fast. There’s a lot to consider, from understanding the types of loans available to knowing how much you can borrow and which mortgage deals to consider.

Don’t worry — you’re not alone. A helping hand can guide you through the process. As independent mortgage advisors near me (Manchester), we try to make the whole process easier. In this blog, we’ll guide you through the key things every first-time buyer mortgage applicant should know about the UK mortgage market.

1. What Exactly Is a Mortgage?

Let’s start with the basics. A mortgage is a loan from a bank or building society used to purchase a property. You’ll typically need to put down a deposit (a portion of the property’s price), and the lender will pay the rest, which you repay over a fixed number of years — with mortgage interest rates applied.

UK mortgages typically span 25–35 years, but durations may vary depending on your mortgage affordability.

2. How Much Can You Borrow?

Your borrowing capacity is based on a few factors:

• Your earnings (including bonuses and overtime)
• Your credit score
• Your debts and monthly expenses
• The value of the property you want to buy

Typically, lenders offer 4 to 4.5x your annual income. Therefore, on a £30,000 salary, you could borrow approximately £135,000. If purchasing with a partner, your incomes will be combined.

💡 Tip: An online mortgage finder or consultation with a good mortgage advisor is a great place to start exploring your options.

3. Details You Missed About Mortgage Deposits

First-time buyers typically need to provide a minimum 5% deposit. A larger deposit (10%, 15% or 20%) can help you secure better mortgage rates.

Example:

• For a £200,000 house, a 5% deposit = £10,000
• A 10% deposit = £20,000

💡 The larger the deposit, the lower the loan-to-value (LTV) ratio, often resulting in cheap mortgages and best mortgage rates.

4. Types of Mortgages in the UK

There are various types of mortgages available. Choosing the right one depends on your budget, long-term goals, and flexibility needs.

📌 Fixed-Rate Mortgage

• Your interest rate is locked for 2, 3, 5, or even 10 years.
• Great for budgeting with consistent payments.
• Best fixed rate mortgage options are ideal for stability.

📈 Variable-Rate Mortgage

• Rate may increase or decrease based on the lender’s standard rate.
• Savings possible if interest rates drop — but risk of increases.

📊 Tracker Mortgage

• Based on the Bank of England base rate + lender’s margin.
• Moves with interest rates, common among tracker mortgage seekers.

💷 Discount Mortgage

• Offers reduced rates from the lender’s usual rate for a limited time.

💡 Be sure to compare more than just rates — look at terms, fees, and flexibility. An expert mortgage advisor or mortgage broker near me can provide invaluable insight.

5. What is Loan-to-Value (LTV)?

Loan-to-Value (LTV) is the percentage of the property price you’re borrowing.

Example: A £200,000 property with a £180,000 mortgage = 90% LTV.

💡 Lower LTV means access to best remortgage rates, remortgage deals, and lowest mortgage rates — another reason why a larger deposit pays off.

6. Mortgage Advisor Job Description: What to Expect

Comparing mortgage and remortgage deals on your own can be overwhelming. A free mortgage advisor can:

• Access multiple lenders (not just one bank)
• Explain pros and cons of remortgage rates comparison
• Handle paperwork and applications
• Ensure you find the best broker mortgage

Whether you’re in Manchester or anywhere else in the UK, speaking to a mortgage adviser or checking in with mortgage advisors near me makes a world of difference.

7. Other Costs to Watch Out For

Beyond your deposit, budget for:

• Legal or conveyancing fees
• Property valuation and surveys (surveys for money or full structural surveys)
• Stamp duty (first-time buyers often get relief)
• Mortgage arrangement fees
• Moving costs
• Furniture and decorating

💡 Budget for extras — it helps prevent surprises and aligns with mortgage affordability planning.

8. Get a Mortgage in Principle

A Mortgage in Principle (MIP) is a document stating how much a lender might lend you. While not a final offer, it is extremely useful when:

• Understanding your affordability
• Making an offer on a home
• Being taken seriously by estate agents

💡 We can help you get this sorted quickly — most mortgage providers offer this free, and it won’t affect your credit score.

Final Thoughts

Buying your first home is a big deal — but with the right support, it doesn’t need to be stressful. When you understand how the UK mortgage market works — and work with trusted mortgage brokers — the process becomes manageable.

Take your time. Ask questions. Don’t hesitate to get help.

📞 At Finsso, we’re passionate about helping first-time buyers across Manchester and beyond. Whether it’s finding the best mortgage deals, helping with your mortgage renewal, or advising on buy to let mortgage options down the road, we’ve got you covered.

Let us help make your home-owning dreams come true — with the best advice and no confusion. CONTACT US NOW.