First time buyer mortgages
Looking to buy your first home? Getting onto the property ladder can be a big step. Let us help you get the keys to your new home.
We can help with many different aspects of buying a home from setting a budget, to valuations and surveys, conveyancing and the all important insurance. Our mortgage advisers will:
- Work out how much you can afford to borrow
- Recommend which mortgage best fits your needs and circumstances and what it'll cost
- Talk you through the protection options available for your home.
Special offers for first time buyers
At the Halifax, we believe that people who give extra should get extra in return.
We also understand that moving home can be quite a challenge to say the least. To give our customers a helping hand, we’re offering a range of mortgages to first time buyers and home movers with just a 5% deposit.
Which means it’s now even easier to make your move with Halifax.
5% deposit available to first time buyers and home movers on properties up to £600,000. Fees may apply. Offer excludes: Remortgages, Shared Equity, Shared Ownership, Negative Equity, Buy To Let and Right to Buy mortgages. This must be the only property you will own.
Take out a Halifax first time buyer mortgage and we'll reward you with £150 cash back if you hold a qualifying Halifax current account.
To qualify you'll need to:
- Hold a Halifax Reward Current Account OR
- Halifax Ultimate Reward Current Account OR
- Any BoS Current Account OR
- Switch your current account to us using our dedicated Current Account Switch Service and do one of the above.
Current accounts are available subject to status to customers aged 18 or over who are resident in the UK.
The £150 cashback is paid through your conveyancer on completion of your mortgage. Please note that this offer is not available on the following selected mortgages: Large Loans (£1m +), Buy to Let, Consent to Lease, Negative Equity, Product Transfer, Further Advance, Shared Equity, Shared Ownership or Halifax Concessionary Staff Scheme.
Obtain a Mortgage Promise to find out how much you could borrow.
When you've an idea of how much you can borrow, you'll know what properties you can afford to buy.
Search local estate agencies for properties you like.
Book appointments to view properties. Once you've found the property you want, make an offer to the seller.
Once the seller has accepted your offer, book your appointment to apply for your mortgage.
Prepare for your appointment by gathering useful documents you may need on the day.
For example pay slips, recent bank statements and proof of your identity.
Allow a couple of hours for your appointment.
If you're applying with someone else, make sure you can all attend the appointment because it'll save time.
Give your mortgage adviser your personal details, and details of the property you want to buy.
They'll ask about your needs and circumstances and then recommend our most suitable mortgage for you.
You'll be asked to choose which type of valuation scheme you want.
You'll be given a Key Facts Illustration, which sets out the terms of the mortgage product and the total cost of the loan.
Please read this carefully as it contains important information.
We'll make enquiries about you at a credit reference agency.
We'll check that you're who you say you're and live where you say you live.
We'll appoint a valuation surveyor and arrange for the property to be valued.
In Scotland the seller of a property has to get a Home Report, which contains a property valuation. We may accept the valuation if the surveyor is on our panel of valuers.
We'll check the valuation report to make sure the property is worth enough to offer the loan you've asked for.
If the valuer has mentioned any major defects in the property it may mean we can't lend you the money or that we keep some back until important repairs are complete.
We'll check your employment and income details and write for any other references we may need.
When all this is done and if everything is ok, we'll write to make you a mortgage offer.
Take time to read your mortgage offer and conditions because they're really important. Ask your conveyancer to explain anything in the mortgage offer and conditions that you don't understand.
Your conveyancer will check your mortgage offer and the things we've asked them to do.
They'll also agree the contract with the seller's conveyancer and carry out searches on the property.
Your conveyancer will check with you what fixtures and fittings you agreed will be part of the purchase price.
You'll need to get several quotes for buildings and contents insurance and decide which one you’re going to accept.
Your conveyancer will ask you to sign the contract to buy the property and you'll pay your deposit.
They'll then exchange contracts (conclude missives in Scotland) with the seller's conveyancer and agree a completion date.
You should set up your buildings insurance cover now.
Your conveyancer will ask us to send them the loan money.
They'll make final checks at the Land Registry/ Registers of Scotland.
You can start to make removal arrangements.
On the day of completion/ settlement, your conveyancer will send the purchase money to the seller's conveyancer.
You'll be able to pick up the keys to your new property.
We'll send a letter to your new address to tell you the mortgage has started.
Can I apply for a first time buyer mortgage?
How much does it all cost?
How much could I borrow?
What type of properties will you lend on?
Is there a minimum purchase price?
What are the risks I should be aware of?
What should I consider when applying for a mortgage?
What insurance will I need?
Will I be charged any fees?
What happens at the end of my mortgage deal?
What happens if I want to move home in the middle my a mortgage deal?
As long as one person applying has never owned a property before, you can apply for a first time buyer mortgage with the Halifax. You must be at least 18 years old to apply for a mortgage, and your mortgage must usually end before you reach 75. If your mortgage term extends past your normal state pension age or your expected retirement age – whichever happens sooner - we'll look at your retirement income to work out whether we think you can afford the monthly payments. If you’re taking out a joint mortgage, it’s the age of the oldest person that’s taken into account.
We'll only lend you a certain percentage of either the purchase price or the property valuation, whichever is lower. So you'll need to use some of your own money to buy the property – a deposit. We usually ask for at least a 5% deposit from your own money. However, if you can pay more, you can often get a cheaper mortgage product.
As well as your deposit, there are other costs associated with buying a property and taking out a mortgage. Typical ones that apply to most buyers include conveyancing fees, Stamp Duty Land Tax, valuation fees and Land Registry fees. There are often unexpected costs too in buying a property, so it's a good idea to have a reserve fund to cover them.
You can use our online calculator to get an idea of how much you could borrow. Or, to get a better indication we can provide you with a Mortgage Promise. We'll start by asking about your income, for example your basic salary and any regular overtime or bonuses. We'll also ask about your regular outgoings, for example credit card or personal loan repayments, and we'll take these off your income. After that, we make a further allowance for average day-to-day living expenses. This allows us to see how much we think you can afford for your mortgage payment each month.
As part of our process of assessing whether we think you can afford the loan, we'll ask your permission to contact a credit reference agency. They can give us information about:
- how you've conducted your finances in the past
- how many credit commitments you've got and how long they will last
- whether you've kept the payments up to date.
We'll use credit scoring to help us decide whether to lend you money. We can also use it to set interest rates for some products. Credit scoring works by awarding you points based on the information that:
- you give us about yourself
- we already have about you, if you've an existing relationship with us
- is on your credit file at the credit reference agency.
We use this information to predict how big a risk we’re taking by lending you money. If you score enough points, we'll provide you with a Mortgage Promise.
We'll consider lending you money to buy different types of property. We may ask you to provide a bigger deposit on some types of property than others. Any loan we make will be subject to a satisfactory property valuation by a surveyor of our choice.
While we'll consider many types of property, we've a responsibility to ensure that a property is suitable security for a mortgage. As a result, we'll not lend against properties where the lower of the valuation or purchase price is below £40,000.
A mortgage has one key difference to other loans - it's secured against your home. If you can't keep up with your monthly repayments or you get into financial difficulties you should contact us straight away so we can give you the help you need.
Remember, house prices can go down as well as up. If you owe more than the current value of your home, you will be in negative equity. If you need to move home and sell your property, and if its value has dropped below what you paid for it, there may be a shortfall between the amount you owe on your mortgage and the amount you get for the sale which you will need to repay.
Mortgages can last for a long time, so it's important you get the one that's right for you. You'll need to think about such things as the type of loan, how long you want it for and what type of product you'd like.
Methods of repayment - there are three different ways of repaying your mortgage. These are repayment, interest-only, and a combination of repayment and interest-only.
Mortgage terms - mortgage terms of up to 40 years are available. How long the mortgage lasts will affect your monthly payments and the total cost of the mortgage. With a repayment mortgage, the longer the term, the lower the monthly payment. However, it'll take you longer to pay off the loan so you will pay more interest. This means it'll cost you more over the life of your mortgage. With an interest-only mortgage, the length of the term makes no difference to the monthly payments because these are only paying off the interest charges and not the loan itself. With an interest-only mortgage your mortgage term needs to match the time when you will have enough money in your repayment plan(s) to repay the loan.
Mortgage products - we may have different types of mortgage products with different types of interest rates. These change from time to time and we'll give you details of the current range when you apply.
Product incentives - from time to time we may offer mortgage products that include an incentive. The interest rate for products with incentives may sometimes be slightly higher than for products without incentives. So you'll need to consider whether the incentive available at the start of the mortgage is more important to you than the slightly lower interest rate you may get during the product rate period without the incentive.
Your mortgage adviser will ask you about your preferences and discuss your needs and circumstances before deciding which mortgage to recommend to you.
It's a requirement of your mortgage to have buildings insurance. This covers the bricks and mortar, fixtures and fittings. It's also a good idea to take out contents insurance as well - this protects all your possessions in your home, from furniture to jewellery.
You may want to look into insurance to protect your mortgage for example Life Cover and Critical Illness Cover.
You may be charged a mortgage account fee which is an interest-free fee charged on new mortgage completions. Depending on the mortgage product, there may be a product fee to pay. You'll need to check our current rates for full details. Any product fees can be added on to your mortgage on completion. There could be other charges and standard costs which you may have to pay during the course of setting up your mortgage. You'll be charged interest on any fees, charges and standard costs added to your loan.
When you take out your mortgage, you arrange to have a fixed or variable rate product for a period of time. At the end of this time, the product will end and your loan will usually be transferred to one of our lender variable rates. At this point, you may choose to move it to a new product for a further period of time.
It's sometimes possible to take a product with you to a new mortgage - we call this 'porting‘. Your Key Facts Illustration and offer letter will say if any of your products are portable.
Our current rates
These are our current fixed rate mortgages available today for first time buyers. There'll only be certain deals which fit your deposit and mortgage amount. When you apply for a mortgage, our mortgage advisers will ask you about your needs and circumstances and then recommend our most suitable mortgage for you.
- First time buyer mortgages up to £1 million
- First time buyer mortgages over £1 million
- Help to Buy Mortgage Guarantee products
|Term||Initial rate||Halifax Homeowner Variable rate thereafter||For the remainder of the term from||The overall cost for comparison is||Product fee||Deposit||Early Repayment Charges until||Mortgage amount|
|2 years||1.74%||Currently 3.99%||30/11/2016||3.9% APR||£1,995||40%||30/11/2016||£200k-£1m|
|2 years||2.14%||Currently 3.99%||30/11/2016||3.9% APR||£995||40%||30/11/2016||£0-£1m|
|2 years||2.54%||Currently 3.99%||30/11/2016||3.9% APR||£0||40%||30/11/2016||£0-£199,999|
|2 years||2.04%||Currently 3.99%||30/11/2016||4.0% APR||£1,995||25-40%||30/11/2016||£200k-£1m|
|2 years||2.54%||Currently 3.99%||30/11/2016||4.0% APR||£995||25-40%||30/11/2016||£0-£1m|
|2 years||3.04%||Currently 3.99%||30/11/2016||4.0% APR||£0||25-40%||30/11/2016||£0-£199,999|
|2 years||2.89%||Currently 3.99%||30/11/2016||4.0% APR||£995||20-25%||30/11/2016||£0-£1m|
|2 years||3.29%||Currently 3.99%||30/11/2016||4.0% APR||£0||20-25%||30/11/2016||£0-£1m|
|2 years||3.34%||Currently 3.99%||30/11/2016||4.1% APR||£995||15-20%||30/11/2016||£0-£1m|
|2 years||3.74%||Currently 3.99%||30/11/2016||4.1% APR||£0||15-20%||30/11/2016||£0-£1m|
|2 years||4.84%||Currently 3.99%||30/11/2016||4.4% APR||£995||10-15%||30/11/2016||£0-£750k|
|2 years||5.24%||Currently 3.99%||30/11/2016||4.4% APR||£0||10-15%||30/11/2016||£0-£750k|
|5 years||3.39%||Currently 3.99%||30/11/2019||4.0% APR||£995||40%||30/11/2019||£0-£1m|
|5 years||3.59%||Currently 3.99%||30/11/2019||4.0% APR||£0||40%||30/11/2019||£0-£1m|
|5 years||3.98%||Currently 3.99%||30/11/2019||4.2% APR||£995||25-40%||30/11/2019||£0-£1m|
|5 years||4.19%||Currently 3.99%||30/11/2019||4.2% APR||£0||25-40%||30/11/2019||£0-£1m|
|5 years||4.84%||Currently 3.99%||30/11/2019||4.6% APR||£995||15-25%||30/11/2019||£0-£1m|
|5 years||5.04%||Currently 3.99%||30/11/2019||4.6% APR||£0||15-25%||30/11/2019||£0-£1m|
|5 years||5.29%||Currently 3.99%||30/11/2019||4.8% APR||£995||10-15%||30/11/2019||£0-£750k|
|5 years||5.49%||Currently 3.99%||30/11/2019||4.8% APR||£0||10-15%||30/11/2019||£0-£750k|
|Term||Initial rate||Halifax Homeowner|
Variable rate thereafter
|For the remainder of the term from||The overall cost for comparison is||Product fee||Deposit||Early Repayment Charges until||Mortgage amount|
|2 years||2.69%||Currently 3.99%||30/11/2016||4.1% APR||£1,995||40%||30/11/2016||£1m-£5m|
|2 years||3.09%||Currently 3.99%||30/11/2016||4.2% APR||£1,995||30-40%||30/11/2016||£1m-£5m|
|2 years||3.39%||Currently 3.99%||30/11/2016||4.2% APR||£1,995||20-30%||30/11/2016||£1m-£2m|
|5 years||3.59%||Currently 3.99%||30/11/2019||4.2% APR||£1,995||40%||30/11/2019||£1m-£5m|
|5 years||3.98%||Currently 3.99%||30/11/2019||4.3% APR||£1,995||30-40%||30/11/2019||£1m-£5m|
Help to Buy Mortgage Guarantee products - Available for properties with a purchase price up to and including £600,000
These fixed rate products support the Government’s Help to Buy Mortgage Guarantee Scheme. To qualify for one of these products it must be the only property you'll own.
Help to Buy excludes: Remortgages, Shared Equity, Shared Ownership, Negative Equity, Buy to Let and Right to Buy.
|Term||Initial rate||Halifax Homeowner Variable rate thereafter||For the remainder of the term from||The overall cost for comparison is||Product fee||Deposit||Early Repayment Charges until||Mortgage amount||
|2 years||5.19%||Currently 3.99%||30/11/2016||4.5% APR||£995||5-10%||30/11/2016||£0-£600k||No MAF**|
|2 years||5.59%||Currently 3.99%||30/11/2016||4.5% APR||£0||5-10%||30/11/2016||£0-£600k||No MAF**|
Our rates are only guaranteed for applications made today. We reserve the right to change our product range at any time.
** No Mortgage Account Fee (MAF) payable.
How to apply
Whether you start your application online, over the phone or in branch, your application will start in the same way by getting a Mortgage Promise.
We'll ask you to provide a few personal details about you and anyone else who will be named on the mortgage. We'll contact a credit reference agency for a credit search and give you a credit score. If you reach our pass mark, we'll provide a personalised Mortgage Promise for how much we can lend you.
To get a Mortgage Promise, you'll need the following:
- Address details for the last 3 years
- Employment and income details for the last 18 months
- Any outstanding financial commitments
Start your application online
You'll need all your details to hand and about 30 minutes to complete the form.
Call us on 08458 50 37 05
Open Mon-Fri 8am-8pm and Sat 9am-4pm (closed on Sundays and Bank Holidays).
Come into branch
Book an appointment online beforehand - we'll call you back to confirm a day and time.
Once you've got your Mortgage Promise, you'll need to speak to one of our qualified mortgage advisers over the phone or in branch. If you started your application online, you'll be asked to provide a contact number so that a mortgage adviser can contact you at your preferred time.
Your mortgage adviser will ask you about your preferences and discuss your needs and circumstances before deciding which mortgage to recommend to you. They'll discuss the next steps in the application process and answer any queries you may have.