First Time Buyer

Foundation Mortgages Bedford

As a first time buyer you may find buying your first home quite daunting. There are many things to consider such as finding a property, choosing the right mortgage, selecting a solicitor and making sure the whole process runs smoothly, you may find the information below useful to help you get on the property ladder.

The first thing you need to do is to contact us on 01234 856991 or by using the form on this page and we will advise you on the mortgage options available to you. It is best to do this before you start looking at properties so you know how much you can borrow and realistically afford.

In the meantime we’ve outlined below some background information on mortgages for first time buyers that we hope you’ll find useful.

How much can you borrow?

The amount a lender will lend you depends on your income & credit commitments. Historically lenders would use a simple multiple of your income however nowadays the majority use complex affordability models to determine the size of the loan. These models usually consider the following

  • Your income & how guaranteed it is
  • Your outgoings such as loans & credit cards,
  • How many children you have
  • How many years you want to borrow the money for
  • Your credit score

As a rough guide a typical multiple is four times your income, however if you want to borrow £100,000 with a £25,000 income but have 4 children you are less likely to be approved.

What other costs do you need to be aware of?

When buying your first home there are other fees as well as your deposit that you will be expected to pay.

You may have to pay stamp duty, please refer to the table* below to see how much you may have to pay

Property purchase price SDLT rate from 23rd September 2022
SDLT    rate
Up to £250,000 First-time buyers: first £425,000 Zero
First-time buyers: SDLT on the portion from £425,001 to £625,000 5%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%
HM Revenue & Customs website:

You’ll usually have to pay 3% on top of SDLT rates if buying a new residential or Buy to Let property means you’ll own more than one.

You will also have to pay for the survey or valuation of the property, the cost of this is relative to the value of the property and can range from £0 to £1,000+.

There is also legal work that needs to be done when purchasing a property. This is known as conveyancing and the cost of this is also relative to the value of the property.

Your lender may also charge an arrangement/booking fee for your mortgage. Contact us to find out how much these fees may be.

The above figures are subject to change, further detail can be found on We do not provide or authorised to give advice on tax and would advise you obtain independent advice from a specialist.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


Simply visit our contact page and we will call you to discuss your mortgage and or protection requirements.

The levels and bases of taxation and UK interest rates are subject to change.

The guidance contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. Principal: Peter Martin Dronfield.