TL;DR
First-time buyer mortgage in the UK - key points
A first-time buyer is someone buying their first property. In the UK, the safest place to start is checking affordability, deposit and expected monthly payment before arranging serious viewings.
Many first-time buyers start with a 5% deposit, but a larger deposit can improve product choice. A lender will also check income, commitments, credit history, employment type and the property itself.
A broker can compare lenders, arrange an Agreement in Principle, help prepare the application and guide you through the process up to the mortgage offer and completion.
Where should a first-time buyer start?
The biggest mistake is starting with property viewings before the budget is checked. First, find out how much you may be able to borrow, how much deposit you need and whether a lender is likely to accept your situation.
1. Check your budget
Income, commitments, dependants, employment type and credit history can all change affordability.
2. Prepare deposit and costs
A deposit is not everything. You also need to plan for solicitor fees, valuation, insurance, moving costs and bills after purchase.
3. Get an AIP
An Agreement in Principle can help show an estate agent that you are prepared to buy.
4. Search within a realistic range
With a checked budget, it is easier to compare homes and avoid offers outside your reach.
7 steps
What does the first-time buyer process look like?
The process is easier when it is broken into clear stages. You know what happens now, what comes next and where costs or documents may appear.
- 1
Consultation and affordability check
We check income, outgoings, commitments, credit history, deposit and your realistic buying budget.
- 2
Agreement in Principle
We can help arrange an Agreement in Principle so the estate agent can see you are prepared to buy.
- 3
Choose a property
You search for a house or flat within a budget that has already been checked.
- 4
Mortgage selection
We compare lenders, fees and criteria, then submit the application on your behalf.
- 5
Mortgage offer
The lender checks documents, valuation and underwriting before issuing a formal Mortgage Offer.
- 6
Solicitor and protection
The solicitor handles the legal work, while we can help arrange home, life or income protection if needed.
- 7
Completion
The solicitor finalises the purchase, funds are released and you collect the keys.
Mortgage adviser
Do I need to use a mortgage adviser?
You do not have to, but it is often useful for a first purchase. A mortgage adviser can compare products, prepare the application and explain the differences between lenders. The fee can be outweighed by better fit, fewer mistakes and a smoother process.
Over 2,500 products
You do not need to compare dozens of lenders, fees and criteria by yourself.
Less stress
You know what is happening at each stage and which documents are needed.
Better fit
We check products against your income, deposit, credit history and plans.
Clear UK mortgage guidance
We explain the process in plain English, without unnecessary lender jargon.
Not sure what to ask at the first meeting? Read: What to ask your mortgage adviser.
Deposit, affordability and additional costs
Your deposit has a major impact on the interest rate and maximum mortgage amount. Many lenders require at least 5%, but 10% or more can improve the number of available products. Some no-deposit mortgage options may exist, depending on criteria.
Example: if the property costs GBP 100,000 and you have GBP 10,000 deposit, you need a mortgage for 90% of the property value. You can also read more in: Buying a home without a deposit.
Upfront costs
- legal fees and conveyancing,
- valuation or home survey,
- possible broker or lender fee,
- Stamp Duty Land Tax, if relief does not apply.
Ongoing costs
- Council tax, depending on area and property band,
- gas and electricity, which you can compare using guidance from British Gas,
- water, home insurance, TV licence and a buffer for initial repairs.
As a first-time buyer, you may qualify for Stamp Duty Land Tax relief depending on current rules and property price. More context is available in: First Time Buyer in the UK - how it works.
How much can I borrow?
It depends on income, employment type, outgoings, credit history, commitments, dependants and deposit. That is why an affordability check should come before serious property viewings.
You can read more and use a simple calculator here: mortgage affordability calculator.
What to avoid
Common first-time buyer mistakes
Viewing homes without a checked budget
First check whether your realistic budget is, for example, GBP 220,000, GBP 260,000 or GBP 300,000. Otherwise it is easy to fall in love with a property outside your range.
Making an offer without an AIP
An Agreement in Principle does not guarantee a mortgage, but it shows the seller that you are prepared and have been checked at an initial stage.
Looking only at the interest rate
The lowest rate is not always the best option. Fees, total cost, lender criteria and product flexibility also matter.
Leaving no money after completion
After buying, you may need to pay council tax, insurance, bills and first repairs. It is rarely sensible to use every pound of savings only for the deposit.
FAQ
Frequently asked questions
How much deposit does a first-time buyer need in the UK?
Many first-time buyers start with a 5% deposit. A 10% deposit or more can increase the number of available products and may improve the rate. The exact options depend on your income, commitments, credit history, property type and lender criteria.
Does an Agreement in Principle guarantee a mortgage?
No. An Agreement in Principle is an initial indication based on basic information. The lender will still check documents, income, outgoings, credit history and the property before issuing a full mortgage offer.
Do I need a mortgage adviser as a first-time buyer?
You do not have to use one, but it is often useful. A mortgage adviser can check affordability, compare lenders, explain costs and guide you through the application. For a first purchase, this can help avoid mistakes and unnecessary stress.
What extra costs should I plan for when buying my first home?
Alongside the deposit, plan for legal fees, valuation or survey, possible lender fees, broker fee, moving costs, home insurance, council tax and household bills. Depending on the property price and rules at the time, Stamp Duty Land Tax may also apply.
Can I buy my first home with adverse credit?
Sometimes, but it depends on the type of issue, amount, dates and your current situation. Minor older late payments are different from recent missed payments, defaults or CCJs. Check your credit report before applying.