First Time Buyer Northern Ireland

What is a First Time Buyer mortgage in Northern Ireland? Is this a specific product?

It’s the same as in England, Scotland and Wales – a First Time Buyer mortgage in Northern Ireland is simply a lending contract between a bank or a building society and a customer purchasing a property for the very first time. It’s very specific to being the first property that you’ve bought anywhere in the world.

What is the First Time Buyer process in Northern Ireland?

Similar to other areas in the UK, the First Time Buyer process usually begins with applicants checking their credit report. We would require them to do that, with it being their first foray into the property market. It’s a good idea to see what state your credit file is in.

Once we’re satisfied with that, an application for a Decision in Principle is next on the agenda. That’s followed by a full mortgage application once you’ve found the right property. After the full mortgage application system is submitted, the offer is issued, it moves over to the legal side and once that’s completed, hopefully you’ll get the keys in your hand.

Is the First Time Buyer scheme available in Northern Ireland?

In 2021 the government introduced the First Home scheme, which provided cheaper homes for key workers looking to purchase their first property. But this scheme is for England only, frustratingly.

Beyond that, First Time Buyers did have access to the Help to Buy scheme, allowing them to put down as little as 5% deposit. They could also benefit from the Help to Buy ISA and the bonuses that came with that.

These have since been phased out, although you can still get the ISA bonuses – that can still be used up to 2029. The only other scheme to mention is the Co-ownership scheme, which is similar to the shared ownership scheme in England and Wales.

Co-ownership allows people with no deposit, or on lower incomes, to purchase their first home with the help of a housing association. It’s not just for First Time Buyers, but it’s certainly more commonly used by people buying for the first time.

How many times your salary can you borrow for a mortgage in Northern Ireland as a First Time Buyer?

Many years ago it was a simple calculation for lenders. It’s not quite as straightforward anymore. They look at your income – your gross salary for an employed person, and your net profit for the self-employed – but they also look at your outgoings.

They allow for your credit agreements, credit card balances and loan repayments. That will reduce your affordability, but very generally you can typically borrow between four and five times your salary – or combined salaries if it’s a joint application.

What do I need to consider when applying for a first-time mortgage in Northern Ireland?

First of all, it’s your affordability – how much you can borrow – and what size deposit you’ve saved up. These will dictate the value of the properties to look at.

Quite often when people sit down with us for the first time, they don’t really know what property values they should aim for. They have no idea what they can afford in terms of a mortgage.

We’ll look at those two things and give an indication of what value house they should look for. We always suggest that you keep an emergency fund, and not just put all your savings towards the deposit. That’s obviously a thing that people tend to tend to do.

Check your credit file, as well, and obviously find yourself a good mortgage advisor to steer you in the right direction.

Is it cheaper to buy a house in Northern Ireland?

Historically, houses in Northern Ireland have been slightly cheaper than other parts of the UK, but not strictly everywhere in the UK.

In 2024, I was at an event where an economist explained that in 2024 Northern Ireland had the highest percentage price rises of any part of the UK. But we’re still below the UK average.

How much are legal fees for First Time Buyers in Northern Ireland?

This will vary depending on the solicitor you use and also the value of the property – as the purchase price of the property will affect the legal fees.

In Northern Ireland that typically ranges from between £700 and £1200, including VAT and disbursements. With house prices being cheaper in Northern Ireland, as we discussed in the previous question, the legal fees tend to mirror that.

What is the average price of a First Time Buyer’s house in Northern Ireland?

As we speak in early 2025, the average house price for First Time Buyers in Northern Ireland is around £130,000. To put that in perspective, the UK average is around £290,000.

So you can see the difference is significant. Obviously, though, you’ve got to bear in mind that London prices will skew the statistics for the whole of the UK.

How much does a First Time Buyer mortgage cost in Northern Ireland?

The rate will depend on the Loan to Value ratio. Currently, in February 2025, with a 5% deposit we would expect rates to range between 4.65% to 5.30%, depending on whether you want a two-year or five-year fixed deal.

On the other end of that scale, anything up above a 40% deposit will get you rates as low as 4.05%. This changes on a daily basis. You could ask me the same question tomorrow and the rates will be slightly different.

How much deposit do you need as a First Time Buyer in Northern Ireland?

The smallest deposit permitted for any First Time Buyer mortgage will be 5%. The Co-ownership scheme does allow 0% deposits, but the lenders are very limited and the rates are slightly higher with no deposit. But generally 5% will be the minimum.

Can you get a 100% mortgage in Northern Ireland?

Only through the Co-ownership scheme. And to be honest with you, it’s not really a 100% mortgage, because up to 50% of the property is still owned by the housing association. The days of 100% mortgages, like they were in the early 2000s, are long gone. We’re not going to see that again in the foreseeable future.

How do banks know if you are a First Time Buyer in Northern Ireland?

Lenders carry out credit searches on all applicants, which will determine whether they are First Time Buyers. The searches are unlikely to show properties bought in other countries – but it certainly doesn’t pay to try to hide anything from a lender.

If you’re not a First Time Buyer, you need to make them aware. If it transpires that you’ve owned property in the past and not declared that, it will get you into a lot of trouble down the line.

How do you prove you can afford a mortgage in Northern Ireland?

We ask for proof of income for any type of mortgage. That would involve bank statements for all applicants and pay slips for employed people. For the self-employed, we use your accounts, SA302s, tax year calculations and tax year overviews.

Using affordability calculators will give you an idea of what you can afford, but confirmation will come from the proof of your income, which all lenders will require.

How can a mortgage broker help?

Most First Time Buyers have limited or no knowledge at all of the property market and how it works – so it can be quite daunting. Using an experienced mortgage advisor helps you navigate your way through the process. That’s highly recommended. Mistakes can be costly, so do yourself a favour and speak to an advisor from the beginning.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS

The information contained within was correct at the time of publication but is subject to change. 13/02/2025