What is a first-time buyer mortgage?

First-time buyer mortgages are designed to encourage first time buyers onto the property ladder, offering a host of incentives to help with the initial costs of buying a house and getting a mortgage.

The mortgage will offer a variety of incentives, potentially including: free valuation, no stamp duty, discounted rates in the initial stages of your mortgage, and cash back on completion of your house purchase. They may also allow you to incorporate the legal and survey fees into your mortgage debt, thus reducing your initial expenses.

100% mortgages are aimed at first time buyers to some extent, because many first time buyers are young people without the savings to give as a deposit. You will have higher interest rates to pay with a 100% mortgage than with other types of mortgage.

Other potential incentives include: mortgage payment protection insurance for the first year, or the repayment of your administration/arrangement fee when the house purchase has been completed.

If you are buying a property for the first time - keep your eye on the best deals because you could save yourself a lot of money!