A guide to first-time buyer mortgages
Getting onto the property ladder as a first-time buyer can feel overwhelming, but with the right guidance it’s more achievable than you might think. This guide covers everything from deposit sizes and affordability to government schemes and what to expect when you apply.
In this guide
What is a first-time buyer?
In the UK, you’re generally classed as a first-time buyer if you’ve never owned a residential property in the UK or abroad. You may still count if you’ve only ever owned commercial property with no living space.
You normally don’t qualify as a first-time buyer if you’ve inherited a home (even if you sold it), if you’re buying with someone who has owned before, or if a parent or guardian is buying the property for you. Lenders use these rules when applying first-time buyer schemes and products.
How much deposit does a first-time buyer need?
Most lenders ask for at least 10% of the property’s purchase price. On a £250,000 home that’s £25,000. Some lenders accept 5% deposits, so you might only need £12,500 on the same property — often with help from schemes such as the Mortgage Guarantee Scheme.
5%
Minimum deposit
With some lenders and schemes
10%
Standard deposit
What most lenders ask for
15–20%
Better rates
Lower LTV unlocks cheaper deals
Saving a deposit is one of the biggest hurdles for first-time buyers. The more you save, the more equity you have and the lower your loan-to-value (LTV) ratio, which can unlock better interest rates and lower monthly repayments.
How much can you borrow?
Most UK lenders will lend between 4 and 4.5 times your annual income, subject to affordability. Some go higher for certain professions or circumstances. Affordability is based on your income, outgoings, and other commitments.
What schemes are available for first-time buyers?
Government and other schemes can make buying your first home more affordable. Eligibility and availability vary by region and scheme.
- Buy a 25–75% share of a property
- Pay rent on the remaining share
- Available through housing associations
- 30–50% discount on eligible new builds
- Must be a first-time buyer
- Price cap of £250k (£420k in London)
- Save up to £4,000/year
- 25% government bonus on contributions
- Must be aged 18–39 to open
What does the process of getting a first-time buyer mortgage look like?
From saving to moving in, here’s a straightforward run-through of how a first-time buyer mortgage usually works.
Build your deposit
Lenders typically want at least 5–10% of the purchase price. The more you put down, the better your chances and often the keener the rate.
See what you can borrow
Lenders look at your income and outgoings to decide how much they’ll lend. Many use income multiples of around 4–4.5× salary, subject to affordability.
Browse homes or get an AIP
You can start viewing or get an agreement in principle (AIP) first. An AIP shows what you might borrow and usually involves a soft search, so it won’t harm your credit file. It typically lasts 30–90 days.
Put in an offer
When you’ve found a place you like, your offer goes to the seller. They choose whether to accept, reject or negotiate.
Offer agreed
With an accepted offer, you move on to the full mortgage application and the rest of the buying process.
Submit your mortgage application
The lender will run a full credit check and affordability review. They may also stress-test your repayments to see if you could still afford them if rates went up.
Go direct or use a broker
You can approach a lender yourself or use a broker. Brokers compare deals across many lenders and can support you if anything gets tricky—often securing better rates than going straight to a single bank.
Get your paperwork together
Expect to provide proof of income (payslips or accounts if you’re self-employed), bank statements, P60, ID, address proof and evidence of where your deposit is coming from.
Conveyancing and legal work
Your solicitor runs searches, handles the money transfer, gets the new title and works with the seller’s solicitor to fix the completion date.
Valuation and surveys
The lender will have the property valued. You can also pay for your own survey to uncover any hidden issues before you’re committed.
Exchange and completion
Your solicitor exchanges contracts with the seller’s, your deposit is paid over and a completion date is set. After that, the sale is legally binding.
Keys and move-in
On completion day, you receive the keys and can move in. The mortgage then starts as agreed.
Speak to a broker who specialises in first-time buyers
Rising house prices and interest rates have made it harder for many first-time buyers. A broker who specialises in first-time buyers can help you understand deposits, schemes, and affordability, and match you with lenders most likely to say yes.
At Clearview Mortgage Solutions our CeMAP-qualified advisers work with 90+ UK lenders. We’ll explain your options in plain English and help you find the right deal—no obligation.
Related guides
More guides in our first-time buyer mortgage hub.
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Our calculators give you a useful estimate, but your actual mortgage and protection options depend on your full circumstances, credit history and lender criteria. Clearview Mortgage Solutions’ FCA regulated—our CeMAP-qualified advisers are on hand to explain how each calculator applies to you and to help you compare real mortgage quotes from 90+ UK lenders.
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