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Doing more for first time buyers

With just a 5% deposit our First Time Buyer mortgage lets you live in the place you love most

Your home may be repossessed if you do not keep up repayments on your mortgage

  • 5% deposit
  • Dedicated mortgage advisor who can give a same day decision
  • Use Our Guide and Your Questions Answered below to help you make the right decision
  • A better way to grow savings for your first home with our Regular Home Saver Account
  • Take advantage of our discounted Home Insurance where first time buyers will qualify for a 15% discount.*

* (The 15% discount is based on a 5% introductory discount and a 10% 2 year introductory No Claims Discount where customers have not previously held either Building or Contents Insurance.)

Get in touch

Call
0845 602 6198
to talk to a mortgage specialist
Open Mon-Fri 8am-8pm


Appointment callback Find nearest branch
Fixed Rate Mortgages
First Time buyer Guide
Your Questions Answered
  • Find a Mortgage Find
    Product name Initial payment Initial rate Until Payment thereafter Rate thereafter (Variable) Overall cost for comparison Arrangement fee  

    This information does not contain all of the details you need to choose a mortgage. Make sure that you read the separate key facts illustration before you make a decision.

    This doesn’t confirm if we’ll be able to offer the mortgage you want. If you would like to discuss your specific circumstances or obtain an illustration, please contact us.

    Rates are correct as at 13th May 2013.

  • A guide to buying your first home

    Useful hints, clever tips, to help you make the right decision.

    If you’re looking to buy a home for the very first time, you don’t have to do it alone. Talk to our dedicated advisers and you’ll enjoy expert help every step of the way.

    From saving for your deposit and finding the right mortgage, to making sure you and your home are protected from the unexpected, we’re here to make sure your first move’s a smart one.

    Step 1.

    Work out your budget.

    The first thing to do when you’re starting out in the property market is set yourself a budget. Owning a home is a serious commitment and you need to be realistic about what you can afford.

    Step 2.

    Improve your chances of getting credit approval.

    Step 3.

    Save up for your deposit.

    Once you’ve got an idea of the kind of price range you should be looking at, you need to get your deposit together. The good news is we’ve got the perfect tool for the job.

    Step 4.

    Don’t forget…

    …you’ll also need to save enough to cover a number of extra expenses associated with buying your own home:

    Step 5.

    Make your move with a choice of first time buyer mortgages.

    Mortgages can be confusing but we’re committed to helping you get the right one. What’s more, we could even help you get your foot in the door sooner, with deposits required from as little as 5%. Of course, it all depends on your individual circumstances. But whichever one you do choose, you can take advantage of:

    Step 6.

    Taking out a mortgage with us is easy.

    Not sure where to start? We can guide you through every step of the way.

    The future availability of 90% and 95% LTV mortgages from Yorkshire Bank cannot be guaranteed. If our maximum LTV is lower e.g. 80%, you will require a deposit of 20% but you will still qualify for £1,000 cash back.

  •  

    Do I need a deposit?

    Yes - usually you will need to meet part of the purchase price from your own funds. The amount of deposit you need depends on the loan to value limit of the type of mortgage you choose. Loan to value (LTV) is simply the amount you need to borrow, expressed as a percentage of the value of the property you want to buy.

    So if you need to borrow £90,000 to buy a home valued at £100,000, your loan to value would be 90%.

    At present you would require a minimum of 5% deposit against the property value or purchase price, whichever is the lower figure. However there are other costs to keep in mind when considering how much you need to save; you'll need money to cover costs such as solicitor's fees, stamp duty land tax and any other costs incurred in moving to your new home.

    Please note that New Build Houses have a maximum loan to value of 90%, while New Build Flats carry a 70% maximum. Any property that’s less than 3 years old would be classed as a New Build.

    How much can I borrow? How do I get an exact figure?

    It’s all about affordability – not simply your salary. So we look at your income and your expenses, then work out how much you can reasonably afford to pay each month for your mortgage.

    A rough guide to this is shown by using our Mortgage Affordability Calculator at the top of this page. If you are in any doubt please submit an online enquiry.

    To obtain an indication of how much you could borrow you would be required to go through an appointment with one of our Mortgage Advisors. This would involve an affordability assessment as well as a credit score. Following this we will be able to provide you with an indication of whether we would be able to proceed with the application and how much we would be able to lend, subject to a suitable valuation. If you would like to proceed with this please submit an appointment callback.

    Do I need to have a property in mind before I go ahead with a mortgage application?

    No, we can go through the initial appointment without a specific property in mind in order to let you know exactly how much we would be willing to lend, subject to an appropriate valuation as well as additional terms and conditions.

    What is loan to value?

    Loan to value (LTV) is simply the amount you need to borrow, expressed as a percentage of the value of the property you want to buy.

    So, if you need to borrow £90,000 to buy a home valued at £100,000, your loan to value would be 90%.

    Can the fees be added onto the borrowing?

    The arrangement fee, which covers the costs involved in setting up your mortgage, can be added onto the mortgage as long as this does not bring the total lending above the maximum Loan To Value for the product.

    For first-time buyer applications the first standard valuation is instructed and paid for by the bank. Any subsequent valuation fee will require to be paid prior to the valuation being carried out but can be refunded upon completion of the drawdown of the funds and added to the borrowing at that point. Again, this is only possible if the extra borrowing does not exceed the loan to value for the chosen product.

    The legal fees are paid directly to your chosen solicitor and, as such, cannot be included in any borrowing.

    Do you offer guarantor mortgages?

    Unfortunately we don’t offer guarantor mortgages. However we do allow up to 4 applicants including partners, friends or parents, to take out a mortgage, and we could take each applicant’s salary into account.

    How does a fixed rate mortgage work?

    Our range of fixed rate products are designed with stability in mind. For the length of the fixed term chosen the interest rates are guaranteed– this means your payment will remain the same throughout.

    At the end of this term, unless you then change your type of mortgage, your rate would automatically transfer onto our Standard Variable Rate.

    What information would you need to consider me for a mortgage?

    If you are a permanent employee
    As a minimum we would look for at least 6 months employment in your current position. In addition to this we would also require that you are not in any probationary period within your current role.

    If you work on a permanent contract
    If you have been in your current job for at least the last 6 months we may be able to lend on this basis.

    If you work on a fixed term contract
    You must have been in continuous employment for the past two years and have at least 12 months remaining on the current contract.

    If you work on a renewable contract
    If the contract length is a minimum of 6 months and has been renewed at least once then we may be able to lend on this basis.

    If you are self employed
    You must have been in business for at least 3 years and you have 3 years business accounts available. Please submit an online enquiry for a callback to discuss further.

    Temporary contracts, such as seasonal work, would not be considered for lending on this basis.

Written quotations are available on request

Applicants must be aged 18 or over, have never had a mortgage or have not had a mortgage for the past 12 months.

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