Start by working out your available deposit, checking your credit position and getting a realistic idea of your borrowing budget. You can then compare mortgage options and consider obtaining a mortgage agreement in principle before making an offer on a property. Once you have an accepted offer, the full mortgage application and property assessment can begin.
Buying your first home
How first-time buyer mortgages work
A first-time buyer mortgage is not a completely different type of mortgage. It is a mortgage for someone buying their first home, and lenders will still assess the application using factors such as income, deposit, existing financial commitments, credit history, mortgage term and the property you want to buy.
Your deposit is one of the most important starting points. The amount you have available affects the percentage of the property price you need to borrow, known as the loan-to-value or LTV. A larger deposit can give you access to a wider range of mortgage products, although mortgages are also available for buyers with relatively small deposits.
Before concentrating on a particular property, it can help to understand how much you may realistically be able to borrow and what the monthly payments could look like. A mortgage specialist can help you compare lender criteria, affordability and available products before you make important decisions about your first home.
Your deposit matters
Your deposit affects your loan-to-value and can influence the range of mortgage products and interest rates available to you.
Affordability comes first
Lenders consider your income, debts, regular commitments and household circumstances when deciding how much they may be prepared to lend.
Lender criteria vary
Different lenders can reach different decisions on the same application, so lender choice can matter just as much as the headline mortgage rate.
The minimum deposit depends on the mortgage products available and your circumstances. Some mortgages are designed for buyers with small deposits, while putting down more can reduce the loan-to-value and may open up a wider choice of products. Remember that your deposit is not the only upfront cost of buying a home.
There is no single borrowing figure that applies to every first-time buyer. Lenders assess income alongside debts, financial commitments, household spending, mortgage term and other circumstances. Two lenders can therefore offer different borrowing amounts to the same applicant.
A mortgage agreement in principle is an initial indication of how much a lender might be prepared to lend based on the information provided. It can help you understand your likely budget when house hunting, but it is not a final mortgage offer and remains subject to a full application and lender checks.
Yes. Family help can take several forms, including a gifted deposit and specialist family-assisted mortgage arrangements. The right approach depends on how the money or support is being provided. Parents or relatives should understand the financial and legal implications before committing to an arrangement.
It depends on where in the UK you are buying, the purchase price and whether you qualify for the relevant relief. England and Northern Ireland use Stamp Duty Land Tax, Scotland uses Land and Buildings Transaction Tax and Wales uses Land Transaction Tax. The first-time buyer rules differ between them.
The deposit is only part of the cost of buying a home. You may also need to budget for legal work, searches, surveys, mortgage or valuation fees where applicable, removals, insurance and the costs of furnishing or repairing the property. Keeping some money in reserve can reduce the risk of the purchase stretching your finances too far.
Common mistakes include concentrating only on the maximum amount a lender might offer, forgetting the wider costs of buying and owning a home, taking on new borrowing during the mortgage process, and making an offer before understanding affordability. A mortgage that is technically available is not automatically the right budget for you.
Yes. Lenders normally consider your credit history alongside affordability and the rest of the application. A lower credit score or previous credit problems do not automatically prevent you from getting a mortgage, but they can affect lender choice, borrowing options and the products available.
It can be useful to understand your likely borrowing range before becoming committed to a particular property. A broker or mortgage adviser can help you understand affordability, lender criteria and potential mortgage options so that you can house-hunt with a more realistic budget.
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Your next step
Find out what your first mortgage could look like
Tell us about your deposit, the property price you are considering and how much you may need to borrow. A mortgage specialist can then discuss affordability, lender criteria and potential routes forward.