Moneysprite’s top 5 mortgage lenders for first-time buyers in the UK 2024
The top 5 mortgage companies in the UK for first-time buyers in 2024 are:
So, why did we pick these banks instead of some other ones?
These are the right questions to ask. However, it’s not that simple. As professional mortgage advisers operating in the mortgage industry for decades, we can clearly state that it’s impossible to say which is the best lender because the most suitable and advantageous lender for one person may not be the same for another.
Tips for comparison and selection criteria
Comparing mortgages isn’t just about selecting the product with the lowest interest rate, although the interest rate offered is something to consider. You’ll also want to consider the types of mortgages offered, such as fixed-term or variable-rate deals. Moreover, you may want to know about extras, such as cashback, discounts or an offset account to leverage savings to reduce interest.
You may even wish to consider other things that are important to you, such as whether the lender has a shop front on the high street. And how does their customer service rank? Last but not least, you may need to ensure the granular details of the mortgage align with your long-term goals.
For example, if you want to remortgage in the future, you will need to keep an eye on early repayment charges and loan closing costs. A broker will be able to complete a comparison of mortgage lenders for first-time buyers.
Halifax’s mortgage product
Exploring your options at Halifax, we found out that Halifax provides mortgages for new homebuyers, offering loans with up to 95% LTV under the Government's guarantee scheme. This means the buyers can secure the mortgage with a relatively small deposit. The bank also allows you to make overpayments, potentially reducing the overall interest paid over the term.
Additionally, they offer a Family Boost mortgage, allowing relatives to secure the loan by depositing 10% of the home's value into a savings account.
Nationwide’s mortgage product
Reviewing the offers at Nationwide, we found out that for first-time buyers, they also offer mortgage loans with up to 95% LTV, making it easier for individuals to get onto the property ladder.
For those struggling with savings, Nationwide suggests affordable home ownership schemes and offers a Helping Hand Mortgage, allowing borrowers to borrow up to 20% more with a 5- or 10-year fixed-rate mortgage.
Please note that before using their tools, preparing financially and comparing mortgage rates is advisable to find the best deal for your situation.
Barclay's mortgage loans
Generally, Barclays asks for a 10% deposit of the amount you wish to borrow, but they offer mortgages tailored to help those struggling to save up this amount.
The lender now offers mortgages designed to assist individuals struggling to save up the required deposit, with some mortgages requiring a minimum 5% deposit through the mortgage guarantee scheme.
Providing clients with a range of fixed-rate and tracker deals to cater to different needs and financial situations.
Barclays participates in the government's mortgage guarantee scheme, offering 95% mortgages for first-time buyers and individuals looking to move to a new home.
HSBC mortgage loans
According to NerdWallet, HSBC offers first-time buyers a 95% loan-to-value (LTV) mortgage, which means a 5% deposit may be required. While not confirmed on HSBC’s first-time buyer mortgage page, this indicates that a borrower can borrow up to 95% of the property's value or purchase price, whichever is lower. Helping a lot of new buyers enter the property market.
HSBC also offer competitive rates, online applications, additional payments or overpayments (with varied conditions) and valuable guides to simplify the mortgage process for first-time buyers.
Please note that mortgages covering up to 95% of residential properties are only valued at a maximum of £500,000. Loan amounts vary based on individual situations, property choice, location and mortgage type.
Virgin Money mortgage solutions
Virgin Money delivers a selection of mortgage options designed for those purchasing their first home, offering up to 95% LTV mortgages, as all competitors. This enables new buyers to acquire their initial residence with a minimal 5% down payment.
Applications can be made directly through Virgin Money or by exploring Shared Ownership schemes with the help of a mortgage advisor. In addition, VM offers exciting initiatives such as limited overpayments and payment holidays for every nine months of consecutive payments.
Does the best always mean the right mortgage?
We usually think "the best" is always the right option, but perspective matters since "the best" varies by personal priorities. To some, the ideal mortgage provider offers the lowest interest rates, while others prioritise flexibility, superior customer service, or the maximum loan amount.
Therefore, it's essential to consult with experts to determine what you should be aware of before even thinking about your priorities.
Biggest mortgage lender or specialist mortgage?
When it comes to the diversity of deals from the largest UK mortgage lenders, not all of them offer distinct mortgage options. They all offer pretty similar deals because that's the market. However, their "special addition" options vary. One offers £250 cashback, the other £500, one offers unlimited overpayments, and the other gives you limited.
If you want to explore something more niche, contact us, and we'll advise you on the best deals on the market. The best mortgage lender for first-time buyers can only be determined through a personalised assessment of your current circumstances and future financial objectives.
Start your journey to your first home by booking a consultation with our experienced mortgage advisers.
