Best banks and lenders for mortgages for first time buyers

If you are hunting for your first home, you have probably already typed “best bank for first time buyer mortgage” into Google and been bombarded with league tables, star ratings and tiny footnotes.

Here is the honest bit. There is no single best bank or lender for first time buyers. There is only the best fit for you and your particular mix of income, deposit, credit history and future plans. The deal that is perfect for your friend could be completely wrong for you.

That is where a broker like Coreco earns their keep. We help you cut through the noise and match your situation to the lenders that actually want to lend to you, on terms that make sense.

Understanding first time buyer mortgages

First time buyer mortgages are designed for people who have never owned a property before. Lenders know you are new to the process, so many offer:

• Lower deposit options compared with standard mortgages
• Slightly more flexible criteria if your credit file is thin
• Extra guidance and tools to help you understand the journey

Some banks specialise in first time buyers with five percent deposits. Others focus on borrowers with strong incomes but limited savings. Some love neat, straightforward applications. Others are brilliant with more quirky cases.

The trick is not to chase the brand with the loudest advert, but to find the lender whose criteria and products line up with your reality.

What makes a bank “best” for first time buyers

When we are comparing first time buyer mortgage lenders with clients, we look at things like:

• Interest rates and APRC not just today’s payment, but the true cost over the initial deal period
• Deposit requirements and maximum loan to value especially if you are working with five to fifteen percent
• How they treat income salary, bonuses, commission, overtime, self employed profits, second jobs
• Support for government schemes such as Shared Ownership or First Homes where appropriate
• How easy they are to deal with application process, speed, communication and the quality of their digital tools

Two big high street names might look similar on rate, but one could lend you more, be kinder to your bonus income and process your application more quickly. That is the lender that is “best” for you, even if they are not top of a comparison site table.

Types of banks and lenders first time buyers use

You are not limited to your own current account bank. First time buyer mortgages come from a mix of:

• Traditional high street banks familiar names with big branch and app presence
• Building societies often very good for genuine first time buyers and those with slightly unusual circumstances
• Online and challenger lenders who offer slick digital journeys and sometimes very sharp pricing
• Smaller specialist lenders which can be brilliant if your situation sits outside the neat boxes

Some building societies have a real soft spot for first time buyers, with manual underwriting and a more human approach to things like self employed income. Some challenger banks are superb if you want fast decisions and everything handled via an app.

You do not need to know who is who. That is our job.

Special products for first time buyers

Most big banks and building societies have products aimed squarely at first time buyers, for example:

• Deals that work with five percent deposits
• Family assisted options, where parents or relatives help with security or cash
• Mortgages designed for Shared Ownership or First Homes purchases

The key is understanding how these products actually work in practice. A family assisted mortgage can be a brilliant boost, but it also ties in the person helping you. A Shared Ownership mortgage can lower the bar for entry, but you need to be clear on rent, service charges and how “staircasing” works.

From this article we would link out to more detailed guides on government schemes and family assisted mortgages, so you can dig deeper when something looks promising.

Comparing banks, without losing your sanity

Trying to compare every bank yourself is a fast track to spreadsheet fatigue. To keep it simple, we usually help clients focus on four things:

1. Total cost over the first deal period including fees as well as monthly payments
2. How much each lender will actually lend you based on their affordability rules
3. How forgiving the lender is of your quirks things like student loans, credit history, job type or contract work
4. Future flexibility options to overpay, move home, or fix again without nasty surprises

Once you see offers side by side in that way, the right choice tends to jump out.

How Coreco can help you choose the right lender

Coreco is a whole of market mortgage broker. That means we are not tied to one or two banks. We can look across a wide range of high street names, building societies, online lenders and specialists to find the first time buyer mortgage that fits you.

We:

• Translate lender jargon into normal language
• Show you how different banks view your income and deposit
• Shortlist the lenders that are actually a good match
• Handle the application, chase the paperwork and keep you updated

You still make the final decision, but you do it with someone in your corner who lives and breathes this stuff all day long.

If you are at the research stage and just want to talk through your options before falling in love with a property, that is exactly the right time to get in touch. Let us do the heavy lifting on lenders and products, so you can focus on finding a home that feels right.