First-Time Buyer Guide: How to Get Your First Mortgage

To buy your first home, you’ll typically need three things: a deposit of at least 5% of the purchase price, an income that comfortably supports the monthly repayments, and a credit history a lender can trust. Get those three into reasonable shape and the rest of the journey — choosing a mortgage, making an offer, picking up the keys — is far more manageable than it first appears.

This guide walks you through the whole process: what lenders look for, how deposits and borrowing work, the types of mortgage, the schemes that can help, and the documents you’ll need. You might be planning to lean on one of our advisers anyway (not the worst plan in the world), but knowing the basics first means you’ll get far more out of that first conversation.

What is a mortgage, in plain English?

A mortgage is a loan from a bank, building society or specialist lender used to buy a property, repaid in monthly instalments over a set term — usually 25 to 35 years. The loan is secured against the property, meaning the lender can take the property back if you don’t keep up the repayments — which is also why mortgage rates are far lower than unsecured borrowing.

What do lenders look for in a first-time buyer?

When a lender assesses your application, they’re really asking one question: can this person comfortably repay what we lend them? To answer it, they weigh up a handful of things:

• Your income. As a rule of thumb, many lenders will consider lending up to around four to five times your annual income — though this varies between lenders and depends on your outgoings.
• Your deposit. The more you put down, the less the lender has to risk — a bigger deposit means a lower loan-to-value ratio (more on that below) and generally better rates.
• Your credit history. How you’ve handled borrowing in the past — credit cards, loans, phone contracts, overdrafts. A clean record helps; a patchy one doesn’t rule you out, but it narrows the field.
• Your spending habits. Lenders do read your bank statements. Regular gambling, heavy overdraft reliance or unexplained large payments can all raise questions — see our guide to common bank statement mistakes that could delay your mortgage.
• Your employment. Stable income matters. Permanent employment makes the assessment simpler, but self-employed buyers absolutely can get mortgages — you’ll just need more paperwork (typically accounts or SA302s rather than payslips).

How much deposit do I need to buy my first home?

Generally, you’ll need at least 5–10% of the property’s value as a deposit, although some lenders may want more depending on your circumstances and the property.

Here’s how it works in practice. Say you’re buying a £300,000 home with a 10% deposit: you put down £30,000, and the lender provides the remaining £270,000. That makes your loan-to-value (LTV) ratio 90% — you’re borrowing 90% of the property’s value. Lenders price their deals in LTV bands, so the lower your LTV, the better the rates you can usually access — even a slightly bigger deposit can make a real difference to your monthly payments.

If saving the full amount yourself feels out of reach, family can help — through a gifted deposit (money gifted, not loaned, towards your deposit — most lenders accept this with a simple confirmation letter) or a guarantor/family-assist mortgage, where a family member supports your application with their income, savings or property. You’ll find more on how we help on our first-time buyer page.

How much can I borrow as a first-time buyer?

As a starting point, many lenders will consider around four to five times your annual income — but the real answer comes from a full affordability assessment covering your income, regular outgoings, debts and deposit.

For a rough idea in about thirty seconds, try our borrowing calculator — then our mortgage repayment calculator will give you a feel for the monthly payments.

For a firmer figure, an adviser can obtain an Agreement in Principle (AIP) — sometimes called a Decision in Principle (DiP). This is a lender’s indication of the maximum they might lend you, based on a basic check of your details. Estate agents often want to see one before taking an offer seriously. One important caveat: an AIP is not a binding mortgage offer — the lender still carries out full checks later.

What types of mortgage can first-time buyers get?

There are two big decisions: how you repay the loan, and how the interest rate behaves.

Repayment vs interest-only

• Repayment mortgage: the standard choice for first-time buyers. Each monthly payment covers the interest and chips away at the loan itself, so by the end of the term you own your home outright.
• Interest-only mortgage: you pay only the interest each month, and the loan itself is still owed in full at the end of the term. Because of that, it’s rarely a suitable recommendation for someone buying their first home.

Fixed-rate mortgages

The interest rate stays the same for the length of the deal — usually two to five years — so your payments won’t change during that period, whatever happens to interest rates. That certainty is why fixed rates are so popular with first-time buyers. The trade-off: if rates fall during your fix, your payments stay where they are.

Tracker mortgages

The rate follows an economic indicator — almost always the Bank of England base rate — plus a set margin. If your deal is “base rate plus 1%” and the base rate is 4%, you pay 5%. Your payments fall if the base rate falls, but rise if it rises.

Variable rates and the SVR

With a variable rate, the lender sets the rate itself and can change it — less predictable than a tracker. When any deal ends, lenders move you onto their standard variable rate (SVR), usually noticeably higher than the deals on offer — which is the point at which most people remortgage, either with their existing lender or a new one.

There’s no single right answer here — it depends on your circumstances, your appetite for risk and your plans. This is exactly the kind of decision an adviser can talk through with you.

How can I improve my credit score before applying?

Start by getting a copy of your credit report — inexpensive (often free) online. Check it thoroughly, and contact the credit reference agency straight away if anything looks wrong. Then, in the months before you apply:

• Register on the electoral roll at your current address;
• Pay every credit commitment on time — set up direct debits so nothing slips;
• Keep new credit applications to a minimum;
• Stay out of your overdraft where you can;
• Never withdraw cash on a credit card, and avoid payday loans;
• Consider closing credit cards you no longer use;
• Be patient with past problems: CCJs and defaults can stay on your file for up to six years, but a consistent recent record shows lenders you’ve turned things around.

A less-than-perfect score doesn’t automatically mean no mortgage — some lenders specialise in helping buyers with credit blips. Speak to an adviser before assuming you’re stuck.

What schemes can help first-time buyers?

A quick note first: the old Help to Buy equity loan scheme has closed to new applicants, so don’t be misled by older articles still promoting it. Plenty of other support exists:

• 95% mortgages: many lenders offer mortgages with just a 5% deposit, supported by a government mortgage guarantee scheme that encourages lenders to keep these deals available. On a £200,000 home, that’s a £10,000 deposit. Rates are typically higher than at lower LTVs, but it can get you into your own home years sooner.
• Lifetime ISA (LISA): save up to £4,000 a year towards your first home and the government adds a 25% bonus — up to £1,000 a year on top. There are conditions, including a cap on the price of the home you buy, so check the current rules on gov.uk.
• Shared Ownership: buy a share of a property and pay rent on the rest, usually to a housing association. You’ll typically need a deposit of 5–10% of the share you’re buying — not the whole property. Over time you can buy further shares (“staircasing”) until you own it outright.
• First Homes scheme: certain new-build homes in England are sold to first-time buyers at a 30–50% discount to market value. Price caps and local eligibility criteria apply — some councils prioritise key workers or local residents — so check the details for your area.
• Right to Buy: eligible council tenants can buy their home at a discount. The rules have changed in recent years, so check gov.uk for the current position.
• Track-record mortgages: a small number of lenders will lend up to 100% based on your history of paying rent in full and on time — typically requiring around 12 consecutive months of rental payments as evidence. Conditions apply, but it’s a genuine route in for long-term renters without a deposit.

For a deeper look at these routes, see our guide to government schemes and support for first-time buyers.

The first-time buyer journey, step by step

1. Get your finances in shape. Check your credit report, steady your spending, and gather your paperwork (checklist below).
2. Speak to an adviser and get an Agreement in Principle. This tells you what you can realistically spend and shows estate agents you’re serious.
3. House-hunt and make an offer. Once a seller accepts, the legal process begins.
4. Instruct a solicitor or conveyancer. They carry out searches — checks on the property and the land it sits on — to flag anything that could affect your purchase.
5. Submit your full mortgage application. Your adviser packages this up with your documents. The lender’s checks typically take two to eight weeks, so a little patience helps here.
6. The lender values the property. A mortgage valuation confirms the property is worth what you’re paying — it protects the lender, not you. For your own peace of mind, consider a more detailed survey: a mid-level HomeBuyer-style report covers the property’s condition, while a full structural survey examines everything in depth.
7. Receive your mortgage offer. The formal, binding offer from the lender.
8. Exchange contracts. You pay your deposit and the purchase becomes legally binding.
9. Complete. The money moves, the keys are yours, and you’re officially a homeowner.

What does buying your first home actually cost?

Beyond the deposit, budget for these (typical ranges — your solicitor and adviser will confirm exact figures):

• Lender product/arrangement fee — charged by some lenders for setting up the deal; anywhere from nothing to around £2,000. Sometimes paying a fee for a lower rate works out cheaper overall, sometimes not — your adviser will do the maths both ways.
• Mortgage advice fee — we don’t work for any single lender; we search over 100 lenders and thousands of deals and recommend the one that fits your circumstances. Your initial consultation comes with no obligation. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances. We’ll always agree any fee with you upfront.
• Valuation fee — around £150–£500 depending on the type, though some lenders cover a basic valuation for you.
• Survey fee — a more detailed survey typically costs £400–£1,500 depending on its depth and the property’s value.
• Solicitor/conveyancing fees — usually between £300 and £1,000 or more, varying by region and complexity.
• Electronic transfer fee — a small charge (usually £25–£50) for the lender to send the funds.
• Removal costs — from around £400 for a one-bed flat to £1,000+ for a larger house.
• Stamp duty — first-time buyers in England and Northern Ireland currently pay nothing on homes up to £300,000, then 5% on the portion between £300,001 and £500,000; above £500,000 the relief disappears entirely. Rates can change at Budgets — check our stamp duty calculator for current figures and our stamp duty guide for worked examples.

What documents do I need for a mortgage application?

Your adviser will give you a precise list, but most lenders will want:

• Photo ID (passport or driving licence)
• A recent utility bill or bank statement as proof of address
• Your last 3 months’ bank statements
• Your last 3 months’ payslips (if employed)
• Your P60s for the last 2 years (if employed)
• Accounts and/or SA302s (if self-employed)
• Details of any existing loans or credit agreements
• Evidence of your deposit (and a gift letter if family are helping)

Getting these together early is one of the easiest ways to keep your application moving quickly.

First-time buyer FAQs

How much deposit do I need as a first-time buyer?

Usually at least 5% of the purchase price, though 10% or more opens up better rates. Some rent-track-record products need no deposit at all, and Shared Ownership only requires a deposit on the share you buy.

How long does a mortgage application take?

Once your full application is submitted, the lender’s checks typically take two to eight weeks. The whole journey — from offer accepted to keys in hand — usually takes a few months.

Can I get a mortgage with bad credit?

Possibly, yes. CCJs, defaults and missed payments narrow your options but don’t always close the door — some lenders specialise in exactly these situations. Speak to an adviser before assuming the answer is no.

Do first-time buyers pay stamp duty?

In England and Northern Ireland, not on homes up to £300,000. Between £300,001 and £500,000 you pay 5% on the portion above £300,000; above £500,000 there’s no first-time buyer relief at all. Scotland and Wales have their own systems — our stamp duty calculator covers all three.

Is an Agreement in Principle a guarantee?

No. An AIP (or DiP) indicates what a lender might lend you based on basic checks, and it’s genuinely useful when making offers — but the lender still carries out full underwriting before issuing a binding mortgage offer.

Who counts as a first-time buyer?

Someone who has never owned a residential property before — anywhere in the world. For couples buying together, that generally means both of you. Owning commercial property (say, a shop or office) doesn’t usually count against you.

Ready to take the first step?

Buying your first home is a big decision, and you don’t have to figure it out alone. Our advisers search over 100 lenders and thousands of deals and explain everything in plain English — and the initial chat costs nothing and commits you to nothing. We can’t promise any particular outcome, but we’ll always be honest with you.

Book a no-obligation chat and let’s get you mortgage-ready.

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The precise amount will depend upon your circumstances.

This article is for general information only and does not constitute financial advice. Scheme rules, tax rates and lending criteria change — always check the latest position and speak to an adviser about your own circumstances.

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