First-Time Buyer Mortgage Guide (UK)

Taking your first step onto the property ladder? Our First-Time Buyer Guide is here to make the process clearer, simpler, and less stressful. Learn what to expect, how much you’ll need, and how to get the best mortgage for your situation.

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Who Counts as a First-Time Buyer?

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A first-time buyer is someone who has never owned a home in the UK or abroad. If you’re buying with someone else, both of you must be first-time buyers to qualify for certain benefits – like Stamp Duty relief.

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What is a Mortgage?

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A mortgage is a loan from a bank or lender that helps you buy a property. You repay it in monthly instalments over a fixed term (e.g. 25–35 years). The loan is secured against your home, which means the lender can repossess the property if you don’t keep up repayments.

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Types of Mortgages for First-Time Buyers

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Here are some common options:

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• Fixed-Rate Mortgage: The interest rate stays the same for a set period (e.g. 2–5 years). Great for budgeting.
• Variable-Rate Mortgage: The rate can go up or down – repayments may change.
• Tracker Mortgage: Follows the Bank of England base rate plus a set percentage.
• Discounted Rate Mortgage: Offers a discount on the lender’s standard variable rate (SVR) for a limited time.

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How Much Can You Borrow?

Lenders typically offer 4–4.5 times your annual income, though this depends on your:

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• Credit history
• Employment type
• Existing debts and outgoings

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How Much Deposit Do I Need?

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Most lenders require a minimum 5% deposit, but the more you can put down, the better the deal you may get.

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Example: For a £200,000 property, a 10% deposit would be £20,000.

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Help Available for First-Time Buyers

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There are several government schemes designed to help:

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• Lifetime ISA (LISA): Save up to £4,000/year and receive a 25% bonus towards your first home.
• Shared Ownership: Buy a portion of a home and pay rent on the rest.
• First Homes Scheme: New-build properties offered at a discount to local first-time buyers and key workers.
• Stamp Duty Relief: Pay no Stamp Duty on properties up to £425,000 (as of 2024/25 tax year).

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Additional Costs to Budget For

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It’s not just the deposit – here are other costs to consider:

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• Mortgage fees (arrangement, booking, valuation)
• Legal fees (solicitor or conveyancer)
• Survey costs
• Stamp Duty (if applicable)
• Removal and furnishing costs

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Step-by-Step: Buying Your First Home

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1. Set your budget – include deposit and fees.
2. Get a Mortgage in Principle (AIP).
3. Start house-hunting.
4. Make an offer on a property.
5. Apply for a mortgage.
6. Arrange a survey.
7. Exchange contracts.
8. Complete and collect your keys.

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Do I Need a Mortgage Adviser?

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A mortgage adviser can:

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• Recommend the best lenders for your circumstances
• Help with paperwork
• Speed up the process
• Access exclusive deals not available directly

A good adviser saves you time, stress, and often money.

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Final Tips for First-Time Buyers

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• Check your credit report before applying for a mortgage.
• Get your paperwork in order early (e.g. payslips, bank statements).
• Don’t overstretch – budget for emergencies.
• Ask questions – your solicitor, adviser, and estate agent are there to help.

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Ready to Take the Next Step?

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Whether you’ve just started looking or are ready to apply, we’re here to support you through the process.
Contact us today for expert, friendly advice tailored to first-time buyers.

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