A 95 mortgage means you have a 5% deposit available - i.e. you're borrowing 95% of the value of your property.

Yes, they exist, but a 95% LTV is very high, and unless you have a guarantor or other security, it's unlikely you'll get the most competitive rates.

However, you could look at the Help to Buy or a mortgage guarantee option to mitigate the lender's risk and drive down the interest rates quoted.

The primary issue for lenders is that for first-time buyers, they can't see any track record of on-time mortgage repayments in your credit file.

Therefore, lenders tend to be a little cautious and won't usually offer the highest multiples of your annual salary to arrive at a maximum mortgage value.

Joint mortgages mean that two people buy a property together - and you can do this with any other person, whether that's a friend, partner, family member or spouse.

In fact, joint mortgages can often have up to four individuals on the title deeds!

For this type of mortgage, the assessment works pretty much identically as that for an individual buyer, although:

• The lender will assess your average annual earnings together to arrive at a maximum lending figure.
• Both applicants will be credit checked, so if one of you has a bad credit history, this can impact the overall application.
• You will both need to co-sign all documentation.

Bad credit makes a mortgage a little trickier to find; there's no doubt about it!

However, don't lose faith if one lender has turned you down.

Most high street banks have reasonably strict policies when it comes to bad credit. They're also sometimes cautious about first-time buyer mortgages, so adding those elements means you're less likely to secure a mortgage product.

There are thousands of niche lenders, including bad credit specialists, so it's nearly always a case of finding out why your bank turned you down and identifying a lender with more flexible eligibility criteria that will be better suited.

Remember, every lender has a different set of policies to follow. Just because one mortgage provider turns you down doesn't mean another won't be happy to accept your application!

They will look at:

• What sort of bad credit issues you have experienced.
• How long ago they occurred.
• Whether you've kept your finances in good order since then.
• If you have now repaid all the outstanding debt.

It's crucial to consult an experienced broker since lender rules vary considerably in this area.

For example, one bank might have a generic credit score and refuse any applicant who doesn't meet that requirement, regardless of the reason.

Others refuse lending to people with a CCJ on their credit file in the last three years.

Specialist lenders often take a more case-by-case view to new applications, so they’re more likely to be comfortable lending to a bad credit first-time buyer, provided you're now in a position to afford the debt.

Affordability means that the lender needs to know you can afford to keep up with the repayments.

They'll look at your income, outgoings, other debts, and the property's value to calculate if they think the borrowing level is manageable with your income.

Yes, in most cases, any first-time buyer can apply for Help to Buy or a mortgage guarantee scheme to help them get onto the property ladder.

You will usually need to apply to the scheme first and then approach a participating bank that can utilise the support to offer a competitive deal.

Alternatively, give us a call, and we'll streamline the process to get your application approved faster.

Professional Support Understanding How Does a Mortgage Work for First-Time Buyers

Revolution Brokers works with thousands of first-time buyers who have been turned down by their bank or found that the mortgage rates offered are not affordable.

Contact our friendly team via email at info@revolutionbrokers.co.uk or call us on 0330 304 3040 to discuss the options.