First time buyers

Buying your home is an exciting time, but as well as finding a place to live, it's important you choose the right mortgage for your financial circumstances. With a variety of mortgages available to first time buyers, we're here to help make the mortgage process as easy as possible and on hand to help you whenever you need us - before, during and after the purchase.

We've put together a guide for first-time buyers below - but if there's anything at all you're not sure about, just give us a call.

How can we help?

If you're new to first direct

0800 48 24 48

first direct account holders

08 456 100 103

Our Mortgage Team are available 8am to 10pm,
7 days a week

How much can I borrow?
Types of mortgage
Types of rate
Steps to buying your first home
Useful links and contacts

How much can I borrow?

Ooop's

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Your total borrowing is calculated automatically once you have enter valid values in the salary fields.

Number of applicants?

1first applicant

2second applicant

Salary £

1st applicants salary £
2nd applicants salary £

You can borrow up to 0 pounds.

Important information

This calculator will give you a figure which is for indication purposes only. It is subject to status and a full financial assessment being made. Figures given by this calculator do not constitute an offer to lend to you.

The maximum we would consider lending will depend on your individual situation, the property you are purchasing (e.g. new build), the loan you choose and the amount you borrow.

Types of mortgage

At first direct we know that everyone's needs are different - which is why we offer a range of fixed and tracker rates, available as both offset and repayment mortgages.

For all our mortgage products, the greater the equity in your property, the lower your Loan to Value (LTV) will be - which allow us to offer better rates.

Repayment Mortgages

Our Repayment Mortgage is a straightforward Capital Repayment Mortgage. Your monthly payments cover both interest and part of the capital, which means that as long as you make your payments, the mortgage will be repaid in full at the end of the term.

Key features:

gives you security that, as long as you make your monthly payments, your mortgage will be repaid in full at the end of the term
you can make unlimited overpayments, however early repayment charges may apply, depending on the type of rate chosen and if you choose to fully repay your mortgage
you can borrow over terms of between 2 and 40 years
minimum mortgage amount £10,000.

Things to bear in mind:

the maximum age for the repayment mortgage is 75 at the end of the mortgage term (subject to status). For joint applications this will be the maximum age of the eldest party
we do not lend for business purposes or buy to let
you must hold or open a first direct 1st Account to qualify.

Find and Compare our Mortgages

Offset Mortgages

Our Offset Mortgage is an interest only mortgage designed to help you get more from your money. You can link your qualifying savings and current account balances to your mortgage so you only pay interest on the difference.

Key features:

an interest only mortgage where your monthly payments will cover only the interest charged on your mortgage. You are responsible for making your own arrangements to repay your mortgage at the end of the mortgage term. You must demonstrate that you have an acceptable repayment vehicle in place, for example you may choose to use an endowment policy, another investment or savings plan
you can make unlimited overpayments, however early repayment charges may apply, depending on the type of rate chosen and if you choose to fully repay your mortgage
you can borrow over terms of between 2 and 25 years
minimum Offset Mortgage amount is £30,000
you can redraw capital up to your mortgage account limit - this will increase your interest payments and could increase the time it takes for you to pay off your mortgage. If you take advantage of the redraw facility, you must review your repayment plan regularly to make sure you are still on track to repay any outstanding capital by the end of the mortgage term. Any borrowing linked to your Offset Mortgage will be secured against your property.

Things to bear in mind:

the maximum age for the Offset Mortgage is 65 at the end of the mortgage term (subject to status). For joint applications this will be the maximum age of the eldest party
sole applicants must have a minimum salary of £30,000. Joint applicants must either have a minimum combined salary of £50,000, or one party have an individual salary of £30,000 or more
we do not lend for business purposes or buy to let
you must hold or open a first direct 1st Account to qualify.

Types of rate

Fixed Rate Mortgages

Our Fixed Rate mortgage gives you the security of fixed mortgage payments until an agreed date, no matter what happens to interest rates.

your rate is fixed for the duration of the chosen fixed rate period meaning that your monthly payments remain the same regardless of what happens to the interest rates throughout the fixed rate period
first direct offers various fixed rate terms. At the end of the fixed rate period your mortgage rate will revert to the Standard Variable Rate unless you successfully apply for another rate
you are able to make unlimited overpayments to your mortgage whenever you choose
early repayment charges may apply if you choose to fully repay your mortgage during the fixed rate period.

Fixed rate mortgage funding is limited and offers may be withdrawn at any time without notice.

Tracker Rate Mortgages

With our Tracker Rate mortgage, the interest rate is set at an agreed percentage above the Bank of England base rate. The interest rate will rise and fall in line with changes to the Bank of England base rate.

the tracker interest you pay is an agreed percentage above the Bank of England base rate. As the Bank of England base rate rises and falls, your tracker will track these changes, and so rise and fall accordingly which will affect your monthly payments
first direct offer various tracker terms. At the end of the tracker rate period your mortgage rate will revert to the Standard Variable Rate unless you successfully apply for another interest rate
you are able to make unlimited overpayments to your mortgage whenever you choose without any early repayment charges.

Standard Variable Mortgages

Our Standard Variable Rate will vary over the term of the mortgage and is a variable rate set internally by first direct. This is the rate that your mortgage will revert to after any fixed, capped tracker or tracker rate has expired.

the Standard Variable Rate is only available as an on sale product with a first direct Offset Mortgage
the Standard Variable Rate does not track the Bank of England Base Rate
the Standard Variable Rate will vary over the term of the loan and is a variable rate set internally by first direct
you are able to make unlimited overpayments to your mortgage whenever you choose without any early repayment charges.

Steps to buying your first home

Step 1/11

How much can you afford?

The first direct How much can I borrow? tool can give you an idea of how much you could borrow depending on how much you earn. Our Find & Compare Tool also lets you view and compare our mortgages and can give you an idea on how much your proposed mortgage payments would be.

Keep in mind that there are many one off expenses involved when you buy a home which you should consider, such as Stamp Duty, conveyancing costs and valuation fees.
Step 2/11

Decide where you want to live

Focussing on one or two areas can help your search - house hunting can be a time consuming business. It's also important to know if your selected areas offer you the lifestyle you want and the access to schools, public transport, work or shops you need.

You can also check your Council Tax bandings (opens in a new window) in England and Wales online to see what your payments might be. For Scottish Council Tax Bandings you will need to contact the Scottish Assessor (opens in a new window).
Step 3/11

Find a property

Register with several estate agents and regularly check the internet. The more homes you view, the more likely you are to get a better idea of the type of property you are looking for.
Step 4/11

Make an offer

Keep an eye on the housing market, have a look at Land Registry reports for houses that have sold in the same area and compare asking prices with actual sale prices to determine the amount you should offer. It is important that your offer is "subject to contract and to survey" which means a survey has been satisfactorily completed and signed contracts have been exchanged.
Step 5/11

Apply for a mortgage

When you apply for a mortgage, your lender will instruct a survey to ensure that the property is suitable to lend against. Your lender will also liaise with your nominated solicitor or conveyancer on the stages involved in completing the legal work to complete your property purchase.
Step 6/11

Instruct someone to carry out the legal work

When you buy a home, you will need someone to act on your behalf to complete the legal work required. You can choose a solicitor or a conveyancer to do this.
Step 7/11

Instruct a survey

Many lenders require a basic valuation, but we recommend that once you've found a property you like, you also have an independent survey carried out to pick up any problems that you might not have noticed yourself - it could pay for itself in the long run.
Step 8/11

Legal work is carried out

Your solicitor or conveyancer will complete various searches including Local Authority Searches, checking the Tenure of the property you are buying and liaising with your lender and the sellers. This can take some time depending on each individual purchase.
Step 9/11

Mortgage offer document

If your mortgage application is successful, your lender will send a mortgage Offer Document to you and your solicitor. When you have signed and returned these forms, the lender is committed to lending you the money subject to the Terms and Conditions stated in the offer documents, such as a satisfactory property valuation.
Step 10/11

Exchanging contracts

You will need to pay a deposit to the seller, usually through your solicitor or conveyancer. The deposit is normally paid once you and the vendor have signed the contract, after which there is a legally binding agreement between you and the seller to complete. At this stage it is a legal requirement that you have buildings insurance in place covering the property you are buying.
Step 11/11

Completion

On the agreed day of completion your solicitor or conveyancer will liaise with your lender to send the mortgage amount to the seller. At this stage you will also pay any outstanding fees such as Stamp Duty and Land Registry fees, along with your legal fees. Following completion, your solicitor or conveyancer will arrange for the relevant forms to be stamped and sent to the Land Registry to record you as the new owner.

Useful links and contacts

Buying a home is a big decision - so you may want to do a bit of research before you make any commitments. We've put together a list of contacts that might help.

Mortgage information

Books - there are many useful books such as the Which? Essential Guide Buy, Sell and Move House: Navigate the Property Market without Getting Lost.

Mortgage information - the Council of Mortgage Lenders (opens in a new window) is the trade association for the mortgage-lending industry. Its website also provides consumer information. The government website (opens in a new window) has detailed step-by-step information and advice on applying for a mortgage.

Legal information

Conveyancers - the Council for Licensed Conveyancers (opens in a new window) has a searchable database of qualified conveyancers.

Estate agents - use a directory of reputable estate agents, tips for buyers, and download property - buying guides. Visit the National Association of Estate Agents website (opens in a new window) to find out more.

Planning - your solicitor will look into this for you but you can also look into if there are future
building developments (opens in a new window) in an area.

Solicitors - the Law Society's website (opens in a new window) has a searchable database of solicitors. You could also ask family and friends for recommendations.

Surveyors - search for a Royal Institute of Chartered Surveyors (opens in a new window) qualified surveyor.

Stamp Duty Land Tax - get the basics and find out about thresholds and rates (opens in a new window).

Local information

Council tax - understand the different property bands and charges (opens in a new window).

Transport - the government website provides information and advice on travelling (opens in a new window) by taxi, bus, train, plane or boat within the UK.

Art and leisure - find out about events and facilities (opens in a new window) in the area.

Childcare - search for a local Sure Start Children's Centre (opens in a new window).

Doctors and dentists - find NHS services (opens in a new window) in the area.

Crime rates - find out about local crime rates (opens in a new window).

Environment - consult interactive maps (opens in a new window) showing information on water, pollution and landfills.

House prices - for average house prices in England and Wales, use the Land Registry's
independent house price index (opens in a new window).

Neighbourhood summaries - type in a postcode to get information on crime, living environments and people from the Office of Statistics (opens in a new window).

Parks and recreation areas - find where the green spaces (opens in a new window) are.

Schools and education - research primary and secondary schools in an area and access
Ofsted reports (opens in a new window). Various national newspapers have school guides online for a small subscription.

Sports facilities - visit your local council's website (opens in a new window) to find leisure centres and sports activities in the area.

Youth services - go to your local council's website to find out what's available for young people (opens in a new window) in the area.

Useful tools

Street view - you can view street-level images of neighbourhoods you're considering by using
Google Street View (opens in a new window).

Property finder websites - search for properties by area with websites such as Fish4homes (opens in a new window), Primelocation (opens in a new window), Rightmove (opens in a new window) and Zoopla (opens in a new window).

Roads - find out about road networks and future developments across England (opens in a new window), Scotland (opens in a new window) and Wales (opens in a new window)

Flooding - use the Land Registry's flood-risk-indicator tool (opens in a new window).

Helpful hands

Removal companies - you can compare quotes from removal companies by using online comparison sites.

Tradesmen - search for trusted heating engineers, electricians and builders at TrustATrader (opens in a new window).

Links to external websites are not reflective of first direct's ability to offer a mortgage, nor do we accept any liability for the accuracy of the information provided by these websites.

Find and Compare our Mortgages

Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.

Have a question or ready to apply?

Contact us