Which mortgage broker offers the best rates for first time buyers

Do mortgage brokers offer different mortgage rates?

Mortgage brokers can have access to different lenders and mortgage products, which means the deals available through one broker may differ from those available through another.

Some brokers use a selected panel of lenders, while others offer broader market coverage. Certain lenders also offer products exclusively through intermediaries, while some deals are available directly to customers.

At GHL Direct, our mortgage advisers compare suitable products from a panel of more than 50 UK lenders.

Is it cheaper to use a mortgage broker or go directly to a bank?

It depends on the mortgage products available and whether the broker charges a fee. A bank generally offers its own mortgage products, while a broker can compare options from multiple lenders within their available range.

A broker may identify a more suitable deal or help you access a lender whose affordability criteria better match your circumstances. However, using a broker doesn’t guarantee a lower interest rate than applying directly to a bank.

It’s important to compare the total cost of the mortgage, including any broker fees, lender fees and interest charges.

Can a mortgage broker get better rates for first-time buyers?

Sometimes. Mortgage brokers may have access to intermediary-exclusive products that aren’t available directly from a lender. However, these products aren’t necessarily cheaper than every deal available elsewhere.

The mortgage rates you qualify for will also depend on factors such as your loan-to-value ratio, income, credit history and the lender’s eligibility requirements. A broker can help compare the available options and explain their overall costs.

Does a bigger deposit help first-time buyers get better mortgage rates?

Generally, yes.

Mortgage lenders often offer more competitive interest rates to applicants with lower loan-to-value (LTV) ratios.

For example, if you’re purchasing a £200,000 property:

• A £10,000 deposit gives you a 95% LTV mortgage.

• A £20,000 deposit gives you a 90% LTV mortgage.

• A £40,000 deposit gives you an 80% LTV mortgage.

A larger deposit may provide access to a wider range of mortgage products and potentially lower interest rates.

However, your income, affordability and credit history will still influence which mortgages are available.

Can first-time buyers get a mortgage with a 5% deposit?

Yes. Some UK mortgage lenders offer 95% LTV mortgages, allowing eligible first-time buyers to purchase a property with a 5% deposit. For example, buying a £250,000 home with a 5% deposit would require £12,500 in savings and a mortgage of £237,500.

Eligibility depends on the lender’s criteria, affordability assessment and the property being purchased. Some low or no-deposit mortgage products may also be available to eligible applicants, although these have additional requirements and risks.

Is the mortgage with the lowest interest rate always the best deal?

Not necessarily.

A mortgage with a low initial interest rate may have higher arrangement fees or other costs that make it more expensive overall.

For example, consider two hypothetical two-year fixed-rate mortgages on a £200,000 repayment mortgage over 30 years:

Although Mortgage A has a lower interest rate, its £1,999 arrangement fee could outweigh the repayment savings over the initial two-year period. These figures are illustrative, not current mortgage offers. They exclude other costs and assume the arrangement fee is paid upfront.

A mortgage adviser can help compare the total costs over the period you expect to keep the deal, rather than focusing only on the headline rate.

Should first-time buyers choose a fixed or tracker mortgage?

A fixed-rate mortgage keeps your interest rate unchanged for an agreed period, commonly two or five years. This can make budgeting easier because your contractual monthly repayments normally remain predictable during that period.

A tracker mortgage usually follows the Bank of England base rate by an agreed margin, meaning your interest rate and repayments can rise or fall. The most suitable choice depends on your budget, financial circumstances and how comfortable you are with potential changes in repayments.

Do first-time buyers have to pay mortgage broker fees?

Not always. Some mortgage brokers charge customers a fee, while others receive commission from the lender. Some brokers receive both.

Before choosing a broker, ask whether a fee applies, how much it is and when it becomes payable. At GHL Direct, eligible first-time buyers can receive mortgage advice and arrangement services with £0 broker fees.

Other costs, such as lender arrangement fees, valuation charges and legal expenses, may still apply.

What should first-time buyers look for in a mortgage broker?

A good mortgage broker should explain the mortgage options available and recommend a suitable product based on your circumstances. Before choosing an adviser, consider their FCA regulatory status, lender access, fees, experience with first-time buyers and the support they provide throughout the application.

It’s also worth checking customer reviews and understanding whether your adviser will help you through to completion.

The cheapest advertised mortgage rate isn’t necessarily the best deal, and the broker promising the lowest rate isn’t automatically the right choice.

How can I find the best mortgage deal as a first-time buyer?

The best mortgage deal is one that suits your financial circumstances, offers affordable repayments and provides good overall value when interest rates, fees and mortgage terms are considered.

Before applying, it’s worth understanding how much you can realistically borrow, how much deposit you’ll need and what monthly repayments you can comfortably afford.

At GHL Direct, our mortgage advisers help first-time buyers across England and Wales compare suitable mortgage products from more than 50 UK lenders. Whether you have a 5% deposit, are buying with a partner or need help understanding your borrowing options, our advisers can guide you through the process.

Looking for your first mortgage? Speak to a GHL Direct mortgage adviser and explore your options with £0 broker fees for eligible customers.