How to get a mortgage: advice for first-time buyers

Banks are being much picker about who they lend to since the start of the pandemic. If you are rejected by one, that does not necessarily mean you can’t get a mortgage. It may be worth speaking to a mortgage broker, who will be able to hunt down specialist lenders who are willing to give you the money. 

Self-employed people who have accepted government support, such as a grant or loan, during the crisis may also struggle to get a mortgage and may benefit from speaking to a broker, too. 

How to make yourself more mortgage-friendly 

A leg up from the family 

There are a number of ‘family springboard’ mortgages that allow parents to help their children buy their first home. With a springboard mortgage, a buyer is able to put down a smaller than average deposit, while taking out a mortgage for the remainder.

To give the lender further security, a family member then puts 10 per cent of the property’s total value into a savings account (where it earns interest) with the lender.

After a set period of time the family member’s funds are released as long as the mortgage payments are up to date. Lenders offering family-backed mortgage deals currently include Barclays, Lloyds Bank, and Family Building Society.