First‑Time Buyers Guide
Buying your first home is a major life milestone. From saving a deposit to unlocking special schemes, this guide offers detailed insights, practical tips, and expert advice to help you every step of the way.
Who Qualifies?
You qualify as a first‑time buyer if you have never owned or had a share in a residential property—whether freehold or leasehold, in the UK or abroad. Even if you inherited part of a property but never lived there, you may still count as a first‑time buyer. Confirm your status early, as it unlocks special rates, buyer incentives, and government schemes.
What Is a Mortgage?
A mortgage is a long‑term loan from a bank, building society, or specialist lender to cover most of your home’s purchase price. It’s secured against the property, meaning the lender can repossess if repayments are missed. Common term lengths are 25 years, but you can choose shorter or longer durations to suit your budget and life plans.
Mortgages come in many forms—fixed‑rate, variable‑rate, tracker, and discount mortgages—each balancing stability and flexibility differently. Always compare interest rates, early repayment charges, and arrangement fees before you commit.
How Much Deposit?
A deposit is the up‑front sum you pay from your own savings. Many lenders ask for at least 10% of the purchase price, though some specialist or government‑backed schemes accept 5%. For a £130,000 home, a 10% deposit is £13,000.
- Higher deposits (15–20%) often secure better rates and lower monthly payments.
- Deposits can come from personal savings, gifts from family, or help‑to‑save accounts.
- Use budget tools to track spending and set up a dedicated savings account.
Before You Apply
- Check your credit score: Use free online services to ensure it’s accurate and take steps to improve it if needed.
- Budget for repayments: Include council tax, utilities, groceries, insurance, and leisure to avoid overstretching your finances.
- Compare mortgage types: Fixed‑rate for certainty, variable or tracker for potential savings when rates fall.
- Plan for extra costs: Factor in legal fees, surveys, valuation fees, Stamp Duty, removal costs, and any immediate renovation expenses.
- Gather documentation: Prepare proof of identity, income (payslips, P60), bank statements, and proof of address to speed up your application.
Mortgage Application Timeline
| Task | Typical Duration |
|---|---|
| Research & compare deals | 1–3 days |
| Get Agreement in Principle | Within 24 hours |
| Submit full application | 3–6 hours |
| Valuation survey | 1–2 weeks |
| Receive mortgage offer | 2–4 weeks |
| Legal exchange & completion | 1–2 weeks post‑offer |
Help for First‑Time Buyers
Deposit Boost
Already have a 10% deposit? Get an extra 5% top‑up to reach a 15% deposit without dipping into savings.
Deposit Unlock
Secure a home with just a 5% deposit on properties valued up to £750,000—no big upfront sum needed.
Kickstart Shared Ownership
Buy up to 75% of a brand‑new home and pay rent on the remaining share, reducing your initial outlay.
Parent Power
Parents can guarantee your mortgage, provide gifted equity, or act as joint applicants to strengthen your application.
First Homes
Get 30–50% off market value on new or resale homes in England, with local councils offering priority to key workers and locals.
Lifetime ISA Top‑Up
Save up to £4,000/year in an ISA and receive a 25% Government bonus to boost your deposit savings.
First Homes Scheme (England)
The First Homes scheme offers first‑time buyers 30–50% off market value on new or resale homes. To qualify:
- Be age 18+ and never owned a home before
- Have household income ≤ £80,000/year (≤ £90,000 in London)
- Secure a mortgage for at least 50% of the discounted price
Local councils can add criteria—such as key worker status or local residency— for the first three months properties are on sale. Armed forces personnel and their families receive exemptions from some local rules.
Apply via the developer or estate agent, pay a refundable reservation fee, and once approved, exchange contracts with your deposit. Completion follows shortly after, handing you the keys to your discounted new home.