Nine hacks on accessing a mortgage as a first-time buyer

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Getting that first foot on the UK property ladder can feel like an uphill struggle for first-time buyers with their dream home seeming tantalisingly out of reach.

Sky-rocketing rental prices, relentless cost-of-living pressures and rising house prices are leaving many young hopefuls feeling trapped. But hope isn't lost. There are several ways to help you unlock that first door, and one of these hacks won’t even cost you a penny.

Registering to vote may not seem immediately relevant to securing a mortgage but being on the electoral register can make a big difference to your application.

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In 2024, a third (33%) of adults aged 18 to 24 still lived with their parents [1]. This may be no surprise given the average age of a first-time buyer in the UK is 33 years and eight months. [2]

A Victorian semi-detached home in the UKA Victorian semi-detached home in the UK
A Victorian semi-detached home in the UK

There were 293,339 first-time buyers in the UK in 2023, down 21% from 369,870 first-time buyers in 2022, suggesting it is becoming increasingly hard to secure that first set of door front keys. [3]

The average property price for a first-time buyer in 2023 was £288,136 while the average first-time buyer deposit was £53,414, equating to 19% of the total purchase price. [4]

With 23 years’ experience helping home-hunters, Jo Pocklington, managing director of Purplebricks Mortgages, says registering can make a world of difference to an application.

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Jo says: “It may not seem relevant to apply for a mortgage but being not on the electoral register can really scupper your chances of getting a loan approved, it doesn’t cost a penny to do and I’ve seen so many first-time buyers fall down at this easy to fix hurdle.

“This is because banks and other lenders that check credit scores look through the electoral roll as part of their checks to verify your identity.

“Not only is this a way of instantly boosting your chances of securing your first set of house keys, but it is also a quick, easy and free solution.

“On the same note, general housekeeping regarding paperwork is also a worthy investment of your time before applying for a mortgage, for example, having a valid proof of ID, Bank statements, payslips and tax returns (if self-employed) will all likely be needed at some stage of the application, so you might as well get it sorted sooner rather than later.”[5]

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Jo has shared eight other important tips that should be crucial reading for any first-time buyers hoping to bag their starter home.

Check your credit score

Jo says: “ Your credit score says a lot about you. The better your score is, the bigger the loan for a mortgage you are likely to receive.

“First-time buyers should ensure their credit score is as appealing as possible. If you can prove you’re good with your finances then you will be far more credible and eligible for a larger mortgage loan”. [6]

Save for a big deposit

Jo says: “ It may sound obvious, but it’s true, the more you can save in a deposit, the better the property and the mortgage that comes with it will be.

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“Of course, saving isn’t always an easy option when you take into account rent, bills and general cost of living expenses.

“But try to be disciplined, perhaps order fewer takeaways or make fewer visits to the pub, unsubscribe to a platform you don’t often use. it may not sound like much but these things add up.

“Banks can also offer the possibility of opening up a savings account which can add interest to help the savings go up.”

Keep money aside for ‘additional fees’

Jo says: “ Although it’s tempting to keep all your savings to get a bigger deposit, it would be a good idea to have some money kept aside to deal with any additional fees that may come up.

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“Most first-time homeowners may think that all their savings will simply go into the house offer and mortgage costs, but there are things like Stamp duty, Land Registry, Conveyancing fees, Building insurance fees as well as things like needing to hire a removal company to transport all of your possessions to your new home.

“Additionally, it’s important to remember that things can go unexpectedly wrong, this is when having some emergency funds put aside can save you when in a tight spot, for example, if the boiler packs in or if you need to get emergency repairs to something.”

Be squeaky clean - bank transfers, debts etc, limit credit applications

Jo says: “ Although you might not think so, the little details can make the biggest changes to you and your application. Sometimes it can be the most trivial of things that wrecks a mortgage application.

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“We have all done it, transferred cash to a friend or family member. How many times have you been tempted to use something silly or amusing as a reference?

“Be warned. A few quid transferred from a friend’s account for a meal out could see you face some difficult questions if that friend had sent it with a joke reference to illegal activity.

“A joke reference about drugs or tax avoidance could easily be misconstrued by a lender, and scupper your application.

“This is also a good time to try and get your finances in the healthiest possible shape, if possible, use this time before applying for a mortgage to get out of your overdraft, pay off debt where possible and limit the number of credit applications - all of these can make you far more appealing if they are in order.”

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Use a Mortgage Broker and get a mortgage agreement in principle BEFORE making an offer

Jo says: “ Aside from mortgage brokers saving you money as well as time, they can also hold your hand and guide you through what can be a convoluted and frustrating process, especially when it’s your first time.

“This is why you must find a broker that you can trust to get you the best rate possible using their expertise.

“And, make sure you get a mortgage agreement in principle signed off before you make your offer, it will not only speed up the process but will allow you to know exactly what your budget is.”[7]

Consider buying with someone else

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Jo says: “ Although many prefer the idea of solely owning their own home, a recent study by Purplebricks found that 84% of Gen-Z Brits are willing to share a mortgage with a friend since two-thirds of 18-24-year-olds are still not homeowners and are considering other options.

“Buying a place that you share can also have its financial advantages, especially for example if they have a good credit rating.

“Sharing a mortgage could be the smart solution for young professionals who feel priced out of the property market, but understand the benefits of owning bricks and mortar.

“A mortgage lender will assess your situation the same way as any other joint application - they will look for responsible spending and your ability to maintain monthly payments.

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“However, it’s important to remember that owning a home is not like a flat-share - people meet new partners, get new jobs, move abroad and make big life changes.

“If you are seriously considering getting a mortgage with a friend, it would be prudent for each of you to ask yourselves where you think you will be in the next five or 10 years.”

Don’t be limited by the standard length mortgage

Jo says: “First-time buyers always need to remember that they have options.

“Each homeowner has different needs and preferences, this is why it is important to remember that the standard-length mortgage isn’t your only option to take.

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“Fixed-rate mortgages offer a sanctuary of predictability in an unpredictable financial landscape. These deals typically range from two to five years, though some lenders now provide fixed-term options stretching up to a decade or even the whole life of the mortgage agreement.

“The real beauty of a fixed-rate mortgage lies in its financial clarity: your monthly repayments remain constant, shielding you from the volatility of fluctuating interest rates.

This means you can confidently budget, knowing exactly what you'll pay each month, regardless of whether the Bank of England decides to adjust base rates.” [8]

Use a Government scheme

Jo says: “ There are several government initiatives in place to assist you in applying for a mortgage.

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“One example is the First Homes Scheme, which helps first-time buyers buy a home for 30% to 50% less than its market value, as long as it is their only or main residence.

“These schemes can be the difference in giving you that extra prop-up when getting your first foot on the property ladder, you just need to know where to look, these schemes can be found on the Government website.”

Jo Pocklington adds: “Lenders are looking for comprehensive evidence of financial stability.

“Your application should include detailed proof of income through recent payslips or tax returns, a clear credit history demonstrating reliable financial management and a comprehensive breakdown of your regular outgoings and existing financial commitments.

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“Remember, the more transparent and well-documented your application, the higher your chances of securing a favourable mortgage offer. If you’re thinking about seriously applying for a mortgage application, make sure you get everything in order to give you the best chance at success before making the application.”

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