Before you offer
Work out a realistic budget, prepare your first-time buyer deposit and consider an Agreement in Principle before making an offer on a property.
First-time buyer mortgages
Buying your first home can feel complicated. A first-time buyer mortgage depends on your deposit, income, commitments and the lender’s affordability criteria, so clear advice can help you understand your options.
Buying your first home
Your first mortgage is one part of a wider buying process. You will usually need to plan a deposit, understand what you can afford, obtain a Mortgage Agreement in Principle, find a property and then make a full application.
After an offer is accepted
The lender may arrange a valuation while your solicitor or conveyancer deals with searches, contracts and the steps towards exchange and completion.
What counts as a first-time buyer?
Generally, a first-time buyer is someone who has not previously owned a residential property. However, whether you qualify can depend on the scheme, lender, tax rules and where in the UK you are buying. Previous ownership, including an inherited or jointly owned property, may be relevant, so check the rules for your circumstances.
Property transaction taxes also differ across the UK. England and Northern Ireland use Stamp Duty Land Tax, Wales uses Land Transaction Tax and Scotland has its own system.
How much could a first-time buyer borrow?
A lender will normally look at income and joint income, regular expenditure, loans, credit cards, childcare, credit history, deposit size, mortgage term and the property itself. Income multiples may form part of an affordability model, but they do not by themselves guarantee how much a first-time buyer can borrow.
What affects affordability?
- How your income is earned and how stable it is
- Existing loans, cards and other commitments
- Deposit and resulting mortgage LTV
- Credit profile and mortgage term
Estimate, then get advice
A calculator can give an initial illustration, but lender criteria differ and a full assessment is needed before relying on a figure. If you are self-employed, see the Self-employed mortgages guide.
Estimate how much you could borrow
Enter your total gross annual income to see two simple income-multiple illustrations. This is a starting point, not a lender affordability assessment.
Actual borrowing depends on income, expenditure, deposit, credit profile, term, property and lender criteria. The 5.5× illustration is not available from every lender and neither figure is a promise of borrowing or acceptance.
How much deposit do first-time buyers need?
There is no single deposit that applies to every first-time buyer mortgage. A 5% deposit mortgage or 95% mortgage may be available in some circumstances, but the property, applicant and lender criteria matter. A low deposit means a higher LTV, which can affect the options and pricing available. Use our deposit calculator to illustrate the deposit needed for a purchase.
£180,000 mortgage on a £200,000 property would be 90% LTV. This is an example only, not a promise of availability.
A larger deposit generally reduces LTV, but the final valuation and lender criteria still matter. Use our LTV calculator for an illustration.
Can family help with your mortgage deposit?
A gifted deposit mortgage may allow a family member to provide money as a genuine gift rather than a loan. Lenders and solicitors commonly need evidence of where the funds came from, the donor’s identity and relationship to you, and confirmation that the donor will not retain an interest in the property or expect repayment.
Requirements vary. A future gifted deposit mortgage guide can cover the detail, but your family should not transfer money until the lender and legal professionals confirm what is needed.
What is a Mortgage Agreement in Principle?
An Agreement in Principle is an initial indication of how much a lender may be prepared to lend, based on information available at that stage. You may also hear Mortgage in Principle, Decision in Principle, AIP, MIP or DIP. It is not a formal mortgage offer and can be subject to verification, valuation and full underwriting.
Many buyers obtain one before viewing seriously or making an offer because it helps set a budget. It does not guarantee a mortgage or acceptance.
What costs should first-time buyers budget for?
Your deposit is not the only cost of buying your first home. Depending on the property and where you buy, budget for:
- Solicitor or conveyancer costs and searches
- Mortgage or product fees, where applicable
- Valuation and any survey you choose
- Property transaction tax where applicable
- Buildings insurance and other cover
- Moving expenses and initial repairs
What first-time-buyer schemes are available?
Home-buying schemes and support can change, and eligibility depends on the current rules, property and applicant. Do not rely on older schemes or online summaries without checking current official guidance. A mortgage advisor can help you identify whether a current route is relevant, but tax and legal questions may need a qualified professional.
Could a Joint Borrower Sole Proprietor mortgage help?
A Joint Borrower Sole Proprietor arrangement, often called JBSP, may allow another person’s income to support affordability without that person necessarily becoming an owner. Lender and product structures vary, and the legal, tax and future borrowing implications should be explained before you proceed. The Joint Borrower Sole Proprietor guide explains the affordability, ownership, legal responsibility and future-borrowing questions to discuss before proceeding.
First-time buyer mortgage process
Understand your budget
Review income, spending, deposit and costs beyond the purchase price.
Prepare your deposit
Keep evidence of savings or any gifted deposit funds.
Get an Agreement in Principle
Use it as an indication, not a formal mortgage offer.
Find a property
Search within a budget that leaves room for ongoing costs.
Make an offer
Check what is included and whether the property is suitable security.
Apply for the mortgage
Provide accurate information for full underwriting.
Valuation, survey and legal work
The lender’s valuation and your survey serve different purposes.
Exchange contracts
Only exchange when your legal and financial position is ready.
Complete and collect the keys
Completion is when the purchase completes and the mortgage starts.
What documents will I need?
Requirements vary by lender, but you may need:
- Identification and address history
- Proof of income and recent bank statements
- Evidence of deposit and its source
- Details of loans and credit commitments
- Gifted deposit declaration and donor evidence, where relevant
- Bonus, overtime or commission evidence, where relevant
- Accounts and tax documents if self-employed
First-time buyer mortgage FAQs
How much deposit do I need as a first-time buyer?
There is no universal minimum. Use our deposit calculator for an illustration. A 5% deposit mortgage may be available in some circumstances, but your deposit, property, income and lender criteria affect the options.
How much can I borrow for my first mortgage?
Lenders consider income, spending, commitments, credit profile, deposit, term and property. Try our borrowing calculator for an initial illustration. A salary multiple alone cannot guarantee a borrowing figure.
Can I get a mortgage with a 5% deposit?
Some lenders may consider a 95% mortgage, subject to their criteria and the property being acceptable security. Availability can change.
What is a 95% mortgage?
A 95% mortgage has a 95% loan-to-value, meaning the mortgage is 95% of the property value and the deposit is 5% in an illustrative purchase.
Can my parents gift my mortgage deposit?
Possibly. Lenders and solicitors usually need evidence of the donor, source of funds and confirmation that the money is a genuine gift rather than a repayable loan.
What is an Agreement in Principle?
It is an initial indication of potential borrowing based on information available at that point. It is not a formal mortgage offer or guarantee of acceptance.
Does an Agreement in Principle guarantee a mortgage?
No. A full application, document checks, credit assessment and valuation can change the outcome.
Can I get a first-time-buyer mortgage if I’m self-employed?
Self-employed first-time buyers can be considered, but lenders may assess and evidence income differently. See the Self-employed mortgages page.
Can I get a mortgage with bad credit as a first-time buyer?
Previous credit problems do not automatically rule out a mortgage, but available lenders, pricing and criteria may differ and approval is not guaranteed.
How long does buying your first home take?
Timescales vary with the property, chain, lender, valuation and legal work. See our property purchase guide for the wider buying process. Starting early helps leave time for questions and delays.
What costs should first-time buyers budget for?
Allow for legal work, mortgage fees, valuation or survey, property transaction tax where applicable, insurance, moving costs and initial work.
Do first-time buyers pay property tax?
It depends on the property, price, location and current rules. England and Northern Ireland use Stamp Duty Land Tax, Wales uses Land Transaction Tax and Scotland has a separate system.
Ready to explore your first mortgage options?
A mortgage advisor can review your deposit, income, goals and circumstances, then explain potentially suitable routes. Rates, products and lender criteria can change.