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First Start Mortgage Information

First Start boosts the borrowing power of first time buyers and movers, by combining their income with that of a sponsor.

What is First Start?

First Start boosts the borrowing power of first time buyers and movers, by combining their income with that of a sponsor. So together they can borrow more, responsibly. It's also available to buyers who have been out of the property market for a while, or who need to buy a property on their own, for example if their personal circumstances have changed.

A sponsor is a close relative, normally a parent or step parent of the applicant, who is added to the mortgage as a co-borrower.

First Start could be the ideal way for a sponsor to help their children or close relative buy a home. Using their income means they can help financially with the monthly repayments now, rather than later with something like an inheritance.

It gives you the power to reach more buyers and could help more buyers onto the property ladder.

More borrowing power

First Start takes the sponsor’s income into account as well as the applicant’s – boosting the overall amount that can be borrowed.

Together, the sponsor and applicant can borrow up to 95% of the value of the property. It’s available for purchases only on a repayment basis, up to £500,000. Check our lending criteria for full details.

Both parties are co-borrowers, and jointly and individually liable for the monthly mortgage repayments, as well as the total mortgage loan.

Expand the options below to see examples of increased borrowing power with First Start. In each example the first table shows what you could borrow on your own and the second table shows what you could achieve by combining your income with a sponsor. 

Borrowing power on your own 

Applicant 1 income Applicant 2 income Borrowing power
£25,000 n/a £112,500

As a single applicant, you could borrow £112,500

Borrowing power with First Start 

Applicant 1 income Sponsor income Borrowing power
£25,000 £50,000 £336,750

With the help of a sponsor you could borrow £336,750

Borrowing power increases by £224,500

Borrowing power with a partner 

Applicant 1 income Applicant 2 income Borrowing power
£32,000 £28,000 £269,400

As joint applicants, you could borrow £269,400

Borrowing power with First Start

Applicant 1 income Sponsor income Borrowing power
£32,000 £80,000 £500,000

With the help of a sponsor, you could borrow £500,000

Borrowing power increases by £230,600

Ownership options for the sponsor

  • First Start allows the sponsor to choose whether to register as a joint owner of the property
  • They must get independent legal advice before completion if they choose not to be registered as a joint owner. Legal and financial advice is highly recommended even if they choose to be a joint owner
  • If the sponsor chooses to be a joint owner, they’ll be registered as a property owner at the Land Registry. An additional 3% stamp duty land tax is payable on second residential homes
  • We highly recommend independent financial, legal and tax advice is taken in all cases to understand any inheritance tax and capital gains tax implications.

First Start calculator

Head over to our First Start affordability calculator so you can calculate your client's affordability. 

Need help? Head over to our First Start calculator help page. 

 

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