The Most Common Questions First-Time Buyers Ask About Mortgages (And The Answers You Need!)

Buying your first home is exciting—but it can also feel overwhelming, especially if you’ve had financial issues in the past or don’t have a credit score. At Clever Mortgages, we specialise in helping first-time buyers, including those who may have faced credit challenges, secure the right mortgage. Below, we answer some of the most common questions first-time buyers ask to help you get started on your homeownership journey.

1. Can I Get a Mortgage If I Have Bad Credit or No Credit History?

Yes! Having bad credit or no credit history doesn’t automatically mean you won’t qualify for a mortgage. Some lenders specialise in helping people with less-than-perfect credit.

Your options may include:

• Specialist lenders who consider your individual circumstances.
• Improving your credit score before applying (more on that below!).

2. How Much Deposit Do I Need as a First-Time Buyer?

Most lenders require at least a 5% deposit of the property’s value. However, a 10% or more deposit can open up better interest rates. If you’ve had financial issues, a higher deposit may improve your chances of approval.

There are also government schemes, like:

• Shared Ownership (buy a percentage, pay rent on the rest).
• First Homes Scheme (discounted homes for first-time buyers).
• Deposit Unlock (5% deposit mortgages backed by lenders).

3. What Help Is Available for First-Time Buyers?

Aside from deposit schemes, there are other ways to make buying your first home easier:

• Lifetime ISAs (LISA) – The government adds 25% to your savings, up to £1,000 per year.
• Family Boost Mortgages – Some lenders allow family members to help without gifting a deposit.
• New Build Incentives – Some developers offer discounts or pay towards your deposit.

4. How Can I Improve My Chances of Getting a Mortgage?

If you’ve had financial issues, here’s how to boost your mortgage approval odds:

• Check your credit score (use CheckMyFile as it cover all 3 agencies, Experian, Equifax, or TransUnion).
• Register on the electoral roll – Lenders use this to verify your identity.
• Clear outstanding debts or set up payment plans.
• Avoid new credit applications before applying for a mortgage.
• Save for a larger deposit if possible, to access better deals.

5. How Much Can I Borrow?

This depends on:

• Your income (including salary, bonuses, and self-employed earnings).
• Your outgoings (credit commitments, childcare, and bills).
• Your credit score and history.

Most lenders will lend 4 to 4.5 times your annual income, though there are some lenders who may be more flexible.

6. What Are the Costs Involved in Buying a House?

It’s not just your deposit—you should budget for:

• Mortgage fees (arrangement fees, valuation fees, broker fees).
• Solicitor/conveyancer fees.
• Stamp Duty (currently waived for first-time buyers up to £425,000 in England, changing on 1^st April 25).
• Survey costs (basic, homebuyer’s report, or full structural survey).
• Moving costs (removal company, new furniture, etc.).

7. What Happens If My Mortgage Application Is Rejected?

A rejection doesn’t mean you can’t get a mortgage! Here’s what to do:

• Find out why (your lender should give you an idea).
• Work on improving your financial situation.
• Speak to a specialist mortgage broker (like us!) to find a lender better suited to your needs.

8. Should I Use a Mortgage Broker?

Absolutely! A broker can:

• Find specialist lenders who accept bad credit or no credit history.
• Save you money by securing the best deal.
• Handle the paperwork and liaise with lenders for you.

At Clever Mortgages, we help first-time buyers find the right mortgage—even if you’ve had financial setbacks. We’ll guide you every step of the way.

Ready to Buy Your First Home?

If you’re a first-time buyer worried about your credit history or mortgage eligibility, don’t stress—we’re here to help! Get in touch with Clever Mortgages today for expert advice tailored to your situation.