First-Time Buyers: Mortgage Tips For Getting Started

Buying your first home is an exciting journey, but it can also feel a bit daunting at times. Don’t worry — we’ve got you! This first time buyer mortgage guide will break down everything you need to know, from deposits to government schemes, so you can navigate the process with confidence. Let’s get stuck in! 👇

A first-time buyer mortgage in the United Kingdom is specifically designed for individuals looking to buy their first property. Understanding the steps and requirements can make this process feel a lot less overwhelming.

Let’s dive into the essential steps every first-time buyer should know:

• Minimum Deposit: Most lenders will ask for at least a 5% deposit of the property purchase price. This means if you’re eyeing a £200,000 home, you’ll need to save at least £10,000.
• Larger Deposits: If you can manage a deposit of 10% or more, you may secure better interest rates and lower monthly repayments! Some lenders even offer 95% Loan to Value (LTV) mortgages without needing a government guarantee, making it possible to buy with just a 5% deposit.
• Gifted Deposits: If your deposit is given as a gift (say, from family), it’s important to declare this. If the gift is over £10,000, be prepared for additional paperwork.

Don’t skip this crucial step! A Mortgage in Principle (or Decision in Principle) is simply an estimate from a lender on how much you could borrow based on your income and expenses.

• Why it Matters: It shows estate agents and sellers that you’re a serious buyer and lasts for about 90 days. Plus, applying typically involves a soft credit check, which won’t affect your credit score.

Generally, you can borrow up to 4.5-5 times your annual salary, depending on your income and outgoings. Using online mortgage calculators can give you a rough estimate, but it’s best to speak to a broker or lender for an accurate figure after reviewing your finances.

When you apply for your mortgage, be ready to provide proof of income (like payslips or tax returns), bank statements, and deposit details. Lenders will conduct affordability checks to ensure you can manage repayments even if rates rise. Improving your credit rating before applying can boost your chances.

Understanding the different mortgage types available can help you make an informed choice:

• Fixed Rate Mortgage: Your interest rate is locked in for a set period (like 2, 3, or 5 years), providing stability over your monthly payments.
• Tracker or Variable Rate Mortgage: The interest rate fluctuates based on the Bank of England base rate or lender decisions, meaning your repayments could vary.

Though the Help to Buy scheme has ended for most, don’t worry too much! Some lenders still offer 95% LTV mortgages without needing any government backing. Additionally, the Lifetime ISA and local schemes like shared ownership can help with your deposit and access to affordable housing.

When budgeting for your first home, keep in mind the following extra costs:

• Legal Fees: You’ll need to pay solicitors or conveyancers for the legal work.
• Survey Costs: Expect fees for a property survey or valuation.
• Stamp Duty: First-time buyers are exempt from Stamp Duty on properties up to £425,000 (as of 2025), but rates apply above this threshold. Learn more about Stamp Duty.
• Mortgage Fees: Be aware of potential arrangement, application, or product fees.
• Ongoing Costs: Remember to factor in costs like buildings and contents insurance, council tax, utilities, and maintenance.

Here are some top tips to ease your journey:

• Budget Realistically: Ensure you’re considering both your deposit and ongoing costs, not just the mortgage repayments.
• Check and Improve Your Credit Score: Getting this right can make a big difference.
• Get a Mortgage in Principle: Doing this before you make an offer can strengthen your position in negotiations.
• Use Professional Advice: Mortgage brokers can save you time and stress by comparing products across the market and handling paperwork.
• Prepare Documentation Early: Having everything ready can speed up the process significantly.
• Commission a Survey: This can help disclose any costly issues with the property before you commit.

To tie it all together, here’s a simple overview of the home-buying process:

1. Assess your affordability and save a deposit.
2. Check your credit report.
3. Use mortgage calculators and chat with brokers for estimates.
4. Secure a Mortgage in Principle.
5. Find your dream property and make an offer!
6. Finalize the mortgage application with your lender.
7. Complete the legal work (conveyancing).
8. Exchange contracts and pay your deposit.
9. Complete—grab those keys and move in!

If you’re feeling overwhelmed, don’t hesitate to seek help. The UK government’s MoneyHelper and lenders’ websites provide loads of useful guides and calculators tailored for first-time buyers.

Navigating your first mortgage doesn’t have to be a headache! With the right guidance and information, you can feel confident and empowered as you step into home ownership.

Ready to take the next step? 😊 If you need advice or assistance with the mortgage process, get in touch with our friendly team. A good advisor helps you find the right lender, avoid the pitfalls, and get the best deal. We’re here to help you figure it all out—no stress, no jargon!

How do I apply for a First Time Buyer Mortgage?

You can start by checking your credit score and gathering necessary documents. Next, consult with a mortgage broker or use our guides to walk you through the application process!

What is a deposit?

A deposit is the upfront amount you pay when buying a home. It’s usually a percentage of the property’s purchase price and can range from 5% to 20% or more.

What are affordability checks?

Lenders conduct affordability checks to ensure you can comfortably repay your mortgage. They consider your income, expenses, and credit history during the assessment.

How long does the mortgage process take?

The whole mortgage process can take anywhere from a few weeks to a few months, depending on various factors such as the complexity of your situation, the lender, and the property purchase.