First-Time Buyer Guide: Everything You Need to Know
From saving your deposit to picking up the keys, here is everything you need to know about buying your first home in the UK.
Artemis
Mortgage Adviser
Buying your first home in the UK is an exciting milestone, but the sheer volume of jargon, paperwork, and financial decisions involved can feel overwhelming. From understanding how much deposit you actually need to navigating government-backed schemes like Shared Ownership and the Lifetime ISA, first-time buyers face a unique set of challenges that experienced homeowners have long since figured out. The good news is that the mortgage market has a wide range of products specifically designed for people taking their first step onto the property ladder, and with the right guidance you can make the process far smoother than you might expect.
In this guide we walk you through the entire first-time buyer journey from start to finish. We cover how much deposit you realistically need in today’s market, which government schemes are still available and worth considering, the different mortgage types you’ll encounter, what lenders look for when assessing your affordability, and a clear step-by-step breakdown of the buying process itself. We also highlight the most common mistakes that first-time buyers make so you can avoid costly errors.
Whether you are just beginning to save, actively searching for a property, or ready to submit a mortgage application, this guide gives you the knowledge you need to approach each stage with confidence. If at any point you want personalised advice, our team of specialist mortgage advisers at Clearview can compare deals from over 90 lenders to find the best option for your circumstances.
How much deposit do you need?
The deposit is the single biggest upfront cost when buying a home. In the UK, the minimum deposit for most mortgage lenders is 5% of the property’s purchase price, which means a 95% loan-to-value (LTV) mortgage. On a £250,000 property, that works out at £12,500. However, the more you can put down, the better the interest rate you’ll be offered and the lower your monthly repayments will be.
Most first-time buyers aim for somewhere between 5% and 15% depending on their savings timeline and the local property market. Putting down 10% or more opens up significantly more competitive deals, and once you reach 15–20% you’ll be in one of the most favourable LTV bands available. It’s worth using a calculator to see how different deposit amounts change your monthly payments.
Deposit benchmarks
5%
Minimum deposit
£12,500 on a £250k home — highest interest rates
10%
Competitive rates
£25,000 on a £250k home — wider product choice
15%
Strong position
£37,500 on a £250k home — lower monthly payments
20%+
Best deals
£50,000+ on a £250k home — lowest rates available
Government schemes for first-time buyers
The UK government offers several schemes designed to help first-time buyers get on the property ladder. While the original Help to Buy equity loan scheme closed to new applicants in March 2023, other valuable options remain available — see our government schemes guide.
Lifetime ISA (LISA)
- Save up to £4,000 per year with a 25% government bonus (up to £1,000 free per year)
- Property must be worth £450,000 or less and purchased with a mortgage
- Must be aged 18–39 to open; account must be open for 12 months before you can use it
- Penalty of 25% on withdrawals for non-qualifying purposes
Shared Ownership
- Buy a share of 25–75% and pay rent on the rest
- Deposit is based only on the share you buy (e.g. 5% of a 25% share)
- Available on new-build and resale properties through housing associations
- You can staircase up to 100% ownership over time
First Homes Scheme
- New-build homes sold at a minimum 30% discount to market value
- Price after discount must not exceed £250,000 (or £420,000 in London)
- Discount is locked into the property title and passed to future buyers
- Must be a first-time buyer and meet local eligibility criteria
Mortgage Guarantee Scheme
- Government backs lenders offering 95% LTV mortgages, increasing availability
- Available on properties up to £600,000
- Not a direct buyer scheme — it encourages lenders to offer higher-LTV products
- You apply for a 95% mortgage as normal; the guarantee operates behind the scenes
Mortgage types explained
Choosing the right mortgage type is just as important as finding the right property. As a first-time buyer you will typically encounter fixed-rate, tracker, and variable-rate mortgages, each with different risk and reward profiles.
Fixed rate vs Tracker
Fixed Rate
- Predictable monthly payments for 2–5 years
- Protection against interest rate rises
- Easier to budget around
- Most popular choice for first-time buyers
Tracker Rate
- Rate moves with the Bank of England base rate
- Payments could increase at any time
- Harder to budget if rates are volatile
- Can be cheaper initially but carries more risk
Which term length?
A two-year fix gives you flexibility to remortgage sooner, while a five-year fix offers longer-term security. If you value certainty and plan to stay in the property, a five-year fix is often the better choice for first-time buyers — especially in a rising rate environment.
Not sure where you stand?
Our mortgage experts can review your situation, find the best deals, and guide you through every step.
What lenders look at: affordability and eligibility
Getting a mortgage is not just about having a deposit. Lenders carry out detailed affordability assessments to make sure you can comfortably afford repayments, both now and if interest rates rise in the future.
Most UK lenders will offer between 4 and 4.5 times your annual gross income, though some specialist lenders go up to 5 or even 6 times for higher earners. On a salary of £35,000, that typically means borrowing between £140,000 and £157,500 — see our borrowing guide for more detail.
How Much Can You Borrow?
This calculator provides estimates only. For personalised advice, speak to an adviser.
The step-by-step buying process
Buying your first home involves several stages, from getting your finances in order to completing the purchase. Our guide to first-time buyer mortgages covers the full process, but here is a clear overview of what to expect at each step.
Common mistakes to avoid
First-time buyers often make avoidable mistakes that can cost them time, money, or even their dream home. Understanding your loan-to-value ratio and stamp duty liability early on can help you avoid the most common pitfalls.
Don’t forget the extra costs
Your deposit is not the only upfront cost. Budget for stamp duty (first-time buyers pay nothing on the first £425,000 in England and Northern Ireland), solicitor fees (£1,000–£1,500), surveys (£250–£600), and removal costs. Many buyers underestimate these and run short at the worst possible time.
Stretching your budget too far
- Just because a lender will lend you a certain amount does not mean you should borrow it all
- Leave room in your budget for unexpected costs, maintenance, and lifestyle
- Consider how a future rate increase would affect your payments
Not checking your credit file early
- Errors on your credit report can delay or block your application
- Check your file on Experian, Equifax, or TransUnion at least 3–6 months before applying
- Close unused credit cards and ensure you are on the electoral roll
Skipping the survey
- The lender’s valuation is not a survey — it only confirms the property is worth the price
- A homebuyer’s survey or full building survey can reveal costly defects
- Spending £300–£600 now could save you thousands in unexpected repairs later
Going direct to your bank
- Your bank only offers its own products — a broker compares the whole market
- Brokers can access exclusive deals not available on the high street
- A good broker also handles the paperwork and chases the lender on your behalf
What Is Loan-to-Value (LTV)?
Understand how your deposit size affects your LTV ratio and the mortgage rates available to you.
Mortgage Rates Explained
Fixed, tracker, or variable — learn how each rate type works before choosing your first mortgage.
How Much Can I Borrow?
Find out exactly how much UK lenders will offer based on your income and outgoings.
Getting Started with a Mortgage Broker
Why using a broker instead of going direct to your bank gives you access to better deals.
Need help with your mortgage?
Our FCA-regulated advisers compare deals from 90+ lenders to find the right mortgage for your situation. No obligation, no upfront fees.
- Free initial consultation — no strings attached
- Whole-of-market access to 90+ UK lenders
- Expert guidance from application to completion
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Ready to buy your first home?
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What Our Clients Say
Real reviews from real homeowners. See why hundreds of clients trust Clearview with their mortgage.
“Clearview made the whole mortgage process so much less stressful. Ali explained every step, found us a rate we didn’t think was possible, and kept us updated throughout. We completed in just five weeks.”
Sarah Mitchell
First-Time Buyer
“We were on our lender’s SVR paying way too much. Clearview found us a fixed deal that saved us over £300 a month. The whole switch was handled for us — couldn’t recommend them enough.”
James & Priya Patel
Remortgage
“As a contractor I’d been turned down twice before. Clearview knew exactly which lenders to approach and how to present my income. Got approved first time with a great rate. Absolute lifesavers.”
David Thompson
Self-Employed
“I’ve used Clearview for three BTL purchases now. They understand the portfolio landlord criteria inside out and always find competitive products. Professional, fast, and genuinely knowledgeable.”
Emma Collins
Buy-to-Let Investor
“Selling and buying at the same time felt overwhelming, but Clearview coordinated everything with our solicitor and estate agent. They even helped us port our existing deal. Brilliant service from start to finish.”
Michael & Laura Reed
Moving Home
“I had a CCJ from years ago and thought I’d never get a mortgage. Clearview matched me with a specialist lender and I’m now a homeowner. They treated me with respect and never judged my situation.”
Rachel Okonkwo
Bad Credit Mortgage
“Clearview made the whole mortgage process so much less stressful. Ali explained every step, found us a rate we didn’t think was possible, and kept us updated throughout. We completed in just five weeks.”
Sarah Mitchell
First-Time Buyer
“We were on our lender’s SVR paying way too much. Clearview found us a fixed deal that saved us over £300 a month. The whole switch was handled for us — couldn’t recommend them enough.”
James & Priya Patel
Remortgage
“As a contractor I’d been turned down twice before. Clearview knew exactly which lenders to approach and how to present my income. Got approved first time with a great rate. Absolute lifesavers.”
David Thompson
Self-Employed
“I’ve used Clearview for three BTL purchases now. They understand the portfolio landlord criteria inside out and always find competitive products. Professional, fast, and genuinely knowledgeable.”
Emma Collins
Buy-to-Let Investor
“Selling and buying at the same time felt overwhelming, but Clearview coordinated everything with our solicitor and estate agent. They even helped us port our existing deal. Brilliant service from start to finish.”
Michael & Laura Reed
Moving Home
“I had a CCJ from years ago and thought I’d never get a mortgage. Clearview matched me with a specialist lender and I’m now a homeowner. They treated me with respect and never judged my situation.”
Rachel Okonkwo
Bad Credit Mortgage
“Clearview made the whole mortgage process so much less stressful. Ali explained every step, found us a rate we didn’t think was possible, and kept us updated throughout. We completed in just five weeks.”
Sarah Mitchell
First-Time Buyer
“We were on our lender’s SVR paying way too much. Clearview found us a fixed deal that saved us over £300 a month. The whole switch was handled for us — couldn’t recommend them enough.”
James & Priya Patel
Remortgage
“As a contractor I’d been turned down twice before. Clearview knew exactly which lenders to approach and how to present my income. Got approved first time with a great rate. Absolute lifesavers.”
David Thompson
Self-Employed
“I’ve used Clearview for three BTL purchases now. They understand the portfolio landlord criteria inside out and always find competitive products. Professional, fast, and genuinely knowledgeable.”
Emma Collins
Buy-to-Let Investor
“Selling and buying at the same time felt overwhelming, but Clearview coordinated everything with our solicitor and estate agent. They even helped us port our existing deal. Brilliant service from start to finish.”
Michael & Laura Reed
Moving Home
“I had a CCJ from years ago and thought I’d never get a mortgage. Clearview matched me with a specialist lender and I’m now a homeowner. They treated me with respect and never judged my situation.”
Rachel Okonkwo
Bad Credit Mortgage
“Clearview made the whole mortgage process so much less stressful. Ali explained every step, found us a rate we didn’t think was possible, and kept us updated throughout. We completed in just five weeks.”
Sarah Mitchell
First-Time Buyer
“We were on our lender’s SVR paying way too much. Clearview found us a fixed deal that saved us over £300 a month. The whole switch was handled for us — couldn’t recommend them enough.”
James & Priya Patel
Remortgage
“As a contractor I’d been turned down twice before. Clearview knew exactly which lenders to approach and how to present my income. Got approved first time with a great rate. Absolute lifesavers.”
David Thompson
Self-Employed
“I’ve used Clearview for three BTL purchases now. They understand the portfolio landlord criteria inside out and always find competitive products. Professional, fast, and genuinely knowledgeable.”
Emma Collins
Buy-to-Let Investor
“Selling and buying at the same time felt overwhelming, but Clearview coordinated everything with our solicitor and estate agent. They even helped us port our existing deal. Brilliant service from start to finish.”
Michael & Laura Reed
Moving Home
“I had a CCJ from years ago and thought I’d never get a mortgage. Clearview matched me with a specialist lender and I’m now a homeowner. They treated me with respect and never judged my situation.”
Rachel Okonkwo
Bad Credit Mortgage
Your next steps
Continue Your Mortgage Journey
Now you understand LTV, here are the next steps to getting the best mortgage deal.
Learn the Basics
You’re here — understand deposits, schemes, and the buying process before you start.
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Check Your Budget
Use our borrowing calculator to find out how much you could borrow based on your income.
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Compare Stamp Duty
See how much stamp duty you’ll pay as a first-time buyer and factor it into your budget.
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Speak to a Broker
Get personalised advice from a Clearview adviser who’ll compare deals from 90+ lenders.
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