What is a first-time buyer?
In the UK you count as a first-time buyer if you have never owned a residential property, whether here or abroad. You may still qualify if the only thing you have ever owned is commercial property with no living space in it.
You usually will not count if you have inherited a home, even one you later sold. The same goes if you are buying with someone who has owned before, or if a parent or guardian is really the one buying the property for you. Lenders lean on these rules when they decide who gets access to first-time buyer schemes and products.
How much deposit does a first-time buyer need?
Most lenders look for at least 10% of the property’s purchase price. On a £250,000 home, that is £25,000. Some will accept 5%, which brings the deposit on the same property down to £12,500, often with support from a scheme such as the Mortgage Guarantee Scheme.
Saving that deposit is one of the hardest parts of buying for the first time. The more you put in, the more equity you hold, and the lower your loan-to-value, or LTV, which is the size of your mortgage measured against the value of the property. A lower LTV tends to mean better interest rates and smaller monthly repayments.
Most lenders look for at least 10% of the property’s purchase price. On a £250,000 home, that is £25,000. Some will accept 5%, which brings the deposit on the same property down to £12,500, often with support from a scheme such as the Mortgage Guarantee Scheme.
Saving that deposit is one of the hardest parts of buying for the first time. The more you put in, the more equity you hold, and the lower your loan-to-value, or LTV, which is the size of your mortgage measured against the value of the property. A lower LTV tends to mean better interest rates and smaller monthly repayments.
How much can you borrow?
Most UK lenders will offer somewhere between 4 and 4.5 times your annual income, subject to affordability. Some stretch further for certain professions or situations. Affordability itself comes down to your income set against your outgoings and any other financial commitments.
Our borrowing calculator gives you a rough idea of the figure, and the monthly repayment calculator shows what that borrowing looks like as a real monthly payment. For numbers matched to your circumstances, and a view on which lenders might accept you, talk to an FCA-regulated broker like Clearview Mortgage Solutions.
Most UK lenders will offer somewhere between 4 and 4.5 times your annual income, subject to affordability. Some stretch further for certain professions or situations. Affordability itself comes down to your income set against your outgoings and any other financial commitments.
Get a personalised estimate
Our borrowing calculator gives you a rough starting figure. For numbers matched to your situation, talk to an FCA-regulated broker like Clearview Mortgage Solutions.
What schemes are available for first-time buyers?
Government and other schemes can bring the cost of a first home down. Shared Ownership lets you buy a share of a property, often 25–75%, and pay rent on the part you do not own. First Homes, which runs in England, takes 30–50% off the price of eligible new builds. The Mortgage Guarantee Scheme sits behind 95% LTV mortgages, the ones that need only a 5% deposit. Help to Buy ISAs and Lifetime ISAs top up your deposit savings with a government bonus.
Which schemes you can use depends on where you are buying and your own circumstances. A mortgage broker can tell you which ones fit and which lenders will work with them. For a fuller walk-through, read our first-time buyer guide.
Government and other schemes can bring the cost of a first home down. Which ones you can use depends on where you are buying and the scheme’s own rules.
Shared Ownership
- Buy a 25–75% share of a property
- Pay rent on the remaining share
- Available through housing associations
First Homes (England)
- 30–50% discount on eligible new builds
- Must be a first-time buyer
- Price cap of £250k (£420k in London)
Lifetime ISA
- Save up to £4,000/year
- 25% government bonus on contributions
- Must be aged 18–39 to open
A mortgage broker can point you to the schemes that fit and the lenders that accept them, including deals you will not find by walking into a high street bank.
What does the process of getting a first-time buyer mortgage look like?
From saving your deposit to picking up the keys, here is how a first-time buyer mortgage usually works.
- 01
Build your deposit
Lenders usually want at least 5–10% of the purchase price saved up. A bigger deposit improves your chances and often earns you a keener rate.
- 02
See what you can borrow
Lenders weigh your income against your outgoings to set how much they will lend. Many work to income multiples of around 4–4.5× salary, subject to affordability.
- 03
Browse homes or get an AIP
You can start viewing straight away, or get an agreement in principle (AIP) first. An AIP is a lender’s estimate of what you could borrow, and it usually runs off a soft credit search, so it leaves no mark on your credit file. Most last 30–90 days.
- 04
Put in an offer
Once you have found somewhere you like, your offer goes to the seller. They can accept it, turn it down, or come back to negotiate.
- 05
Offer agreed
Once your offer is accepted, you move on to the full mortgage application and the rest of the buying process.
- 06
Submit your mortgage application
Now the lender runs a full credit check and a proper affordability review. They may also stress-test the repayments, checking whether you could still cover them if rates were to rise.
- 07
Go direct or use a broker
You can approach a lender yourself or go through a broker. A broker compares deals across many lenders and can step in when something gets tricky, and will often find a better rate than you would get by walking into a single bank.
- 08
Get your paperwork together
Expect to hand over proof of income (payslips, or accounts if you are self-employed), bank statements, your P60, ID, proof of address, and evidence of where your deposit came from.
- 09
Conveyancing and legal work
Your solicitor runs the property searches, handles the transfer of money, registers the new title, and works with the seller’s solicitor to agree a completion date.
- 10
Valuation and surveys
The lender arranges its own valuation of the property. You can also pay for a survey of your own to catch any hidden problems before you are committed.
- 11
Exchange and completion
Your solicitor exchanges contracts with the seller’s side, your deposit is paid over, and a completion date is set. From the moment contracts are exchanged, the sale is legally binding.
- 12
Keys and move-in
On completion day the keys are yours and you can move in. Your mortgage starts on the terms you agreed.
Speak to a broker who specialises in first-time buyers
Rising house prices and higher interest rates have made the first step harder for a lot of buyers. A broker who focuses on first-time buyers can walk you through deposits, schemes and affordability, then match you with the lenders most likely to say yes. That includes specialists for bad credit or self-employed applicants.
At Clearview Mortgage Solutions our CeMAP-qualified advisers work with 90+ UK lenders. You can compare deals across the market, or talk to us first for a clear, no-obligation look at where you stand.