FINANCE
building societies and Barclays bank also offer long validity.
renters have reliably paid for over a year. Includes new build properties and shared ownership. Five-year fix, zero fees, 5.18%. April Mortgages’ No Deposit mortgage offers 10-year and 15-year fixes at 6.18/6.39% respectively (but won’t lend on flats or new builds). HIGH MULTIPLES Most lenders offer 4-4.5 times income, but there are exceptions. HSBC will offer 6.5 times salary to those earning over £100,000 a year. Nationwide will go to six times salary for employed income over £35,000 for five-year and 10-year fixes of up to 95% LTV; Leeds will offer 5.5 times income for first time buyers with salaries over £30,000, while Lloyds, Halifax, Santander, Yorkshire and NatWest also offer high multiples.
FRIENDSHIP GROUPS
Some lenders are wary of offering mortgages to friends, others are more obliging. Skipton for Intermediaries will accept up to four applicants and take all the incomes into account, as will Bath, Darlington and Dudley building societies. You will definitely need to use a broker and make sure you have appropriate legal agreements in place.
BENEFITS
Lenders vary in their attitude to state benefits, but a few accept them as income. Yorkshire Building Society, for example, includes Universal Credit in its affordability tests and will also accept Child Tax Credit and disability benefits. Nationwide for Intermediaries also takes into account a wide variety of benefits. If your main source of income comes from state benefits, a broker would help you to find the most suitable product. SHARIA-COMPLIANT For Muslims whose faith prevents them using interest-bearing products, Home Purchase Plans are a joint ownership agreement with a bank, where the customer gradually buys the bank’s share. These are often publicised with an equivalent interest rate to aid comparison. For example, EG Gatehouse Bank offers HPPs for employed, contractors and temporary workers, including international residents, and will cover new build houses and flats (up to 90% LTV) and other homes up to 95% LTV. Discounts are available for EPC A and B properties. Green two-year fix at interest equivalent 6.49% with £999 fee. Also available to non-Muslims.
EXPERT COMMENT
POOR CREDIT
Affordability sits at the heart of our lending. We don’t rely on rigid income multiples, which gives us room to look properly at how someone earns their living. A growing number of rst time buyers across England and Wales now work in ways that don’t follow the old nine-to- ve pattern. Many earn their income through contracts or zero-hours roles but can show a steady record over time. Rather than exclude them, we look closely at affordability and the consistency behind the gures. With a 5% deposit mortgage, that exibility could make the difference between being shut out and getting a rst foothold on the property ladder. For people who run their own business, we can look at their income over the past couple of years to understand how steady it is. We ask for the evidence needed to paint an honest picture, and nothing more. We could also look at zero-hour contractors, as long as they can show a consistent pattern of work over two years. Because we are affordability-led rather than driven by xed income multiples, we can take a more exible view of applicants whose income is steady but unconventional. For many rst-time buyers, that exibility is what makes a 5% deposit mortgage possible.
A bad credit history, including bankruptcy (over a year ago) or CCJs, is not insurmountable, but expect to pay a higher interest rate and require a larger deposit. Applying and being refused runs the risk of making your credit score look even worse, so you will need a broker. Specialist “poor credit” brokers often charge large fees, so start first with a regular, free whole-of- market broker.
UNUSUAL HOMES
Mainstream mortgage lenders like traditionally built homes – but what if you have your heart set on a thatched cottage or a rammed earth eco-home? Ecology Building Society is one of the few that will consider non-standard construction, as well as self-build, offsite modular construction and renovation mortgages. Its Eco Home Mortgage is 4.19% variable for up to 80% LTV, £499 fee. You may also find it harder to get a mortgage for high-rise apartments, homes above shops or near takeaways, former council houses or homes on a flood risk area. If you’re sure this is your dream home (remember, if you are struggling to get finance so will prospective buyers when you come to sell), then seek out a broker to help you find the right lender.
FOREIGN NATIONALS
People often live and work in the UK without become British citizens, excluding them from mainstream mortgages. However, if you have indefinite leave to remain or a Visa with over two years to run, plus a job and a UK bank account, some lenders will help. For example, Hanley Economic BS offers a two-year fixed rate up to 80% LTV, £1,199 fee, 4.99%. It will loan to foreign nationals on a Skilled Worker or Healthcare Worker visa immediately on arrival. Accord Mortgages will loan up to 90% LTV to foreign nationals with a visa provided one person has a minimum income of £50,000.
OFF-PLAN HOMES
Many first time buyers look at new developments that are still being built, but with many lenders your mortgage offer may only be valid for a couple of months. If your home is still on the drawing board, look for lenders with a longer time frame. Coventry BS offers an initial nine months, with the option to extend to a year, while Principality, Nationwide, Leeds and Nottingham
Beth Palfreyman , Head of Underwriting, The Stafford Building Society
All mortgages deals are subject to change
First Time Buyer February/March 2026 91
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