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We have created some helpful guides to ensure that buying your new Tilia home is as simple as possible.

With more than 70 years’ experience, Tilia Homes proudly builds quality new-build homes and communities across the country.

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A guide to first-time buyer mortgages

Understanding how mortgages work is an essential part of turning your plans for a new home into reality.

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Guide for first time buyers

A guide to first-time buyer mortgages

To help you prepare, this guide explains the key stages of getting a mortgage as a first-time buyer, including:

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Step one: Save for your deposit

As a first-time buyer, you’ll need to have a deposit ready before applying for a mortgage. Most lenders require around 10% of the property’s value, although some may ask for more depending on your circumstances.

Remember, having a larger deposit can often work in your favour, potentially leading to better interest rates and reducing your monthly repayments.

Step two: Apply for an ‘Agreement in Principle’ (AIP)

An Agreement in Principle, sometimes called a ‘Mortgage in Principle’, helps you understand how much you could borrow for your first home.

Most lenders allow you apply for an Agreement in Principle online, which includes a soft credit check and is usually valid for up to 90 days.

An AIP is not a full mortgage offer and does not guarantee you will be approved for a mortgage with a provider, but it does allow you to confidently explore your options.

You can also use our Mortgage Calculator to estimate how much your dream home might cost each month.

Step three: Understand the different types of first-time buyer mortgages

There are several types of mortgages that first-time buyers can choose from, including:

  • Fixed Rate Mortgage: Keeps your monthly payments the same for a set period (usually 2-15 years). This is a popular choice with buyers who prefer predictable payments.
  • Standard Variable Rate (SVR): Based on the lender’s default rate, which can change depending on market conditions.
  • Tracker Mortgage: Tracks an external rate, like the Bank of England base rate, which can change depending on the market conditions.
  • Guarantor: Although not strictly a mortgage product, this involves a third-party (often a family member) who ‘guarantees’ to cover payments if necessary.

Step four: Prepare for your mortgage application

To improve your chances of securing a new homes mortgage, you will need to demonstrate that you’re financially stable and capable of managing repayments. Here are a few ways to prepare for your mortgage application:

  • Maintain a good credit score (you can check your credit score by using sites like Checkmyfile)
  • Provide evidence of your ability to make regular repayments, such as rent or utility bills.
  • Use a credit card responsibly and make timely payments
  • Build additional savings for moving costs or emergencies
  • Ensure you’re in full-time employment or have a steady income source

Step five: Get advice from a financial expert

Choosing the right mortgage can be easier with the help of an Independent Financial Advisor (IFA). At Tilia Homes, we work with Independent Financial Advisors to ensure you find the mortgage that best suits your needs.

The New Homes Group can help you, a seller, our team, and lenders all have a clear understanding of your financial status. We therefore request that all potential buyers are qualified by The New Homes Group to help progress their home buying journey.

Then you’re free to continue working with The New Homes Group or use a mortgage provider of your choice once you’ve completed this step.

If you’d like to learn more about first time buyer mortgages or see our range of new homes for sale that are perfect for first time buyers, please get in touch using the contact details on this page.