buying your first family home: mortgage tips for new parents

Becoming a parent brings many exciting changes, and for many families in the UK, one of the biggest milestones is buying their first home. Whether you’re moving from a rented property or upgrading to a larger space, purchasing a home as a new parent comes with unique financial considerations. From budgeting wisely to choosing the right mortgage and finding a family-friendly area, here’s what you need to know.

With the added costs of raising a child—such as childcare, baby essentials, and medical expenses—it’s crucial to reassess your finances before committing to a mortgage. Consider:

• Deposit Savings
A larger deposit (typically 10–20%) can help secure a better mortgage rate. Some schemes, like the Lifetime ISA (LISA), can boost your savings with a 25% government bonus.

• Monthly Mortgage Costs
Lenders assess affordability based on your income, outgoings, and financial commitments. Use a mortgage affordability calculator to estimate what you can borrow.

• Additional Expenses
Beyond mortgage payments, factor in council tax, utilities, maintenance, and moving costs.

Tip: If you’re on parental leave, lenders may assess your income differently, so check mortgage eligibility with your bank or broker.

There are various mortgage options, but as a new parent, you’ll want a deal that offers
stability and affordability. Common options include:

• Fixed-Rate Mortgage
Ideal for families looking for predictable payments, as interest rates remain unchanged for a set period (e.g., 2, 5, or 10 years).

• Tracker Mortgage
Follows the Bank of England base rate, meaning payments can fluctuate. This can be beneficial if rates are low but comes with some risk.

• Help to Buy & Shared Ownership
If you need help stepping onto the property ladder, schemes like First Homes Scheme or Shared Ownership can make buying more accessible.

Tip: Speak to a mortgage broker (like us!) for advice on family-friendly mortgage options and potential lender incentives.

Choosing the right area is just as important as selecting the right house. When looking for a family-friendly neighbourhood, consider:

• Schools & Nurseries
Check Ofsted ratings and local catchment areas if schooling is a priority.

• Parks & Green Spaces
Access to outdoor play areas and nature trails can be a huge benefit for young families.

• Healthcare & Amenities
Proximity to GP surgeries, hospitals, and childcare facilities is essential.

• Transport Links
Easy access to work and family visits via public transport or major roads.

• Shops & Community Services
Having supermarkets, pharmacies, and family-friendly cafes nearby adds convenience.

Tip: Visit the area at different times of the day to check for traffic, noise, and general safety
before making a decision.

While your needs may be simple now, consider how your home will suit your family five to
ten years down the line. Think about:

• Extra Bedrooms
Will you need more space if your family grows?

• Storage Space
Babies come with a lot of gear—ensure there’s room for buggies, toys, and clothes.

• Garden & Outdoor Space
Even a small patio or nearby park can be a lifesaver with
young kids.

• Work-From-Home Space
If you plan to work remotely, having a quiet corner or home
office is a plus.

Tip: Buying with the long term in mind can save you from needing to move again too soon,
reducing costs and stress.

Before applying for a mortgage, make sure your finances are in the best possible shape:

• Check Your Credit Score
Lenders will assess your creditworthiness, so check your report via Experian or Equifax.

• Reduce Outstanding Debt
Paying down credit cards or loans can improve your mortgage affordability.

• Gather Documents in Advance
You’ll need payslips, tax returns (if self-employed), proof of address, and bank statements.

• Consider Parental Leave Impact
If you’re on maternity/paternity leave, some lenders will assess future income rather than current pay -ask in advance.

Tip: Getting a mortgage in principle (MIP) can show estate agents you’re a serious
buyer and speed up the process.

Beyond your deposit and mortgage, don’t forget about these additional costs:

• Stamp Duty
First-time buyers in England & Northern Ireland don’t pay Stamp Duty on homes up to £425,000.

• Solicitor & Legal Fees
Typically £1,000–£2,000 for conveyancing.

• Surveys & Valuations
A homebuyer’s survey can help avoid costly repairs later.

• Moving Costs
Hiring movers or renting a van can add £500–£1,500 to your budget.

Tip: Having an emergency fund can cover unexpected costs like urgent repairs or higher-
than-expected bills.

Buying your first family home is a significant step, but with careful planning, it can be an exciting and rewarding experience. By setting a realistic budget, choosing the right mortgage, and selecting a family-friendly location, you can create a home where your child can grow and thrive.

Start by speaking with a mortgage broker, reviewing your finances, and exploring neighbourhoods that fit your family’s needs. With the right approach, you’ll soon have the keys to a home where lasting memories will be made.

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