First-Time Buyer Mortgages UK — Your Complete Guide

The amount you can borrow depends primarily on your income and outgoings. Most UK lenders will offer between 4 and 4.5 times your annual income, though some will stretch to 5 or even 5.5 times in certain circumstances.

For example, if you earn £35,000 per year, you could typically borrow between £140,000 and £157,500. If you're buying with a partner who also earns £35,000, your combined borrowing could be £280,000 to £315,000.

However, it's not just about income. Lenders also look at your monthly outgoings, existing debts, credit commitments, and living expenses. They want to make sure you can comfortably afford the mortgage payments alongside your other financial commitments.

Our affordability calculator can give you a quick estimate, but for an accurate figure, speak to one of our advisers who can assess your full financial picture.

The minimum deposit for a first-time buyer mortgage is typically 5% of the property value. So for a £250,000 property, you'd need at least £12,500.

However, a larger deposit will give you access to better interest rates and more lender options. Here's how deposit size typically affects your options:

5% deposit (95% LTV) — The minimum for most lenders. Rates are higher, but there are good deals available, especially through government-backed schemes.

10% deposit (90% LTV) — A significant improvement in rates. This is where you start to see much more competitive deals from mainstream lenders.

15-20% deposit (80-85% LTV) — Excellent rates available. This is the sweet spot for many first-time buyers who want the best balance of deposit size and interest rate.

25%+ deposit (75% LTV or less) — The best rates on the market. If you can reach this threshold, you'll have access to the most competitive deals available.

There are several government and lender schemes designed specifically to help first-time buyers get on the property ladder.

Shared Ownership — Buy a share of a property (typically 25-75%) and pay rent on the remainder. This significantly reduces the deposit you need and can make homeownership accessible in expensive areas. You can buy additional shares over time through a process called 'staircasing'.

First Homes scheme — A government scheme offering new-build homes at a discount of at least 30% to local first-time buyers. The discount is passed on when you sell, keeping homes affordable for future first-time buyers.

Lifetime ISA — Save up to £4,000 per year and the government adds a 25% bonus (up to £1,000 per year). You can use the funds towards your first home purchase, as long as the property costs £450,000 or less.

Stamp Duty relief — First-time buyers pay no Stamp Duty on properties up to £425,000, and a reduced rate on properties up to £625,000. This can save you thousands compared to what a non-first-time buyer would pay.

Our advisers can help you understand which schemes you're eligible for and how to make the most of them.

Here's what to expect when you apply for your first mortgage:

Step 1: Get a Decision in Principle (DIP) — This is a preliminary check by a lender confirming how much they'd be willing to lend you. It's not a guarantee, but it shows estate agents and sellers that you're a serious buyer. We can usually arrange this within 24 hours.

Step 2: Find your property — With your DIP in hand, you can start house hunting with confidence, knowing your budget.

Step 3: Make an offer — Once you've found the right property, make an offer. Having a DIP strengthens your position.

Step 4: Full mortgage application — Once your offer is accepted, we submit your full mortgage application. The lender will carry out a valuation of the property and a detailed assessment of your finances.

Step 5: Mortgage offer — If everything checks out, the lender issues a formal mortgage offer. This typically takes 2-4 weeks from application.

Step 6: Exchange and completion — Your solicitor handles the legal work. You exchange contracts (at which point the sale becomes legally binding) and then complete, which is when you get the keys.

Throughout this process, we're with you every step of the way, handling the lender communication and keeping everything on track.