TL;DR
First-time buyer mortgage in the UK - key points
Buying your first home starts with checking affordability, deposit and expected monthly payments, plus upfront costs such as legal fees, a survey and purchase tax (SDLT, LTT or LBTT depending on the UK nation). Buying your first UK home does not automatically qualify you for first-time-buyer tax relief: a previous residential interest anywhere in the world, including an inherited or gifted share, or a joint buyer who has owned before, can affect eligibility. Lender product criteria are separate.
Some mortgages allow a 5% deposit, subject to eligibility, 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?
Checking your budget early helps you focus your property search. Find out how much you may be able to borrow, how much deposit you need and which lender criteria apply to 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, but it does not guarantee a mortgage.
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?
These seven stages give an overview, but some overlap. Choose a solicitor or conveyancer early so legal work can progress alongside the mortgage application; in Scotland, a solicitor submits your formal offer.
- 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 and solicitor
Search within your checked budget and choose a solicitor or conveyancer early. In Scotland, your solicitor submits the formal offer.
- 4
Mortgage selection and application
We compare lenders, fees and criteria, then submit the mortgage application on your behalf. Legal work runs alongside the application.
- 5
Mortgage offer
The lender checks documents, valuation and underwriting before issuing a formal Mortgage Offer.
- 6
Legal checks and protection
Your solicitor or conveyancer completes the legal checks begun earlier and tells you when the purchase becomes legally binding (exchange of contracts in England, Wales and Northern Ireland; concluding missives in Scotland). Agree when buildings insurance must start; we can also help arrange home, life or income protection if needed.
- 7
Completion
The solicitor finalises the purchase, funds are released and you collect the keys.
A lender’s valuation assesses the property as security for the mortgage. It does not replace a survey of the property’s condition. In Scotland, the seller usually provides a Home Report, and the contract becomes binding when the solicitors conclude missives. Confirm the order of steps with your solicitor before you commit.
Mortgage adviser
Do I need to use a mortgage adviser?
You do not have to use an adviser. An adviser can compare mortgage products, prepare the application and explain lender criteria. Ask which lenders they cover, what fees apply and when those fees become payable before deciding whether to use the service.
Compare mortgage options
We compare lenders, fees and criteria to help you understand your options.
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 be available, subject to the current criteria of the particular lender and product.
Example: for a £100,000 property with a £10,000 deposit, the mortgage would be £90,000 — 90% loan-to-value (LTV). This example excludes other purchase costs.
Your deposit usually comes from your own savings. Many lenders also accept a gifted deposit from a family member, normally with a signed gift letter and proof of where the money came from. Some buyers use government-backed home-buying schemes, which differ between England, Wales, Scotland and Northern Ireland: see government home-buying schemes.
Upfront costs
- legal fees and conveyancing,
- any lender valuation fee, for the lender’s assessment of the property as security,
- a separate buyer’s survey to assess the property’s condition,
- possible broker or lender fee,
- purchase tax: SDLT in England and Northern Ireland, LTT in Wales or LBTT in Scotland, where payable.
Ongoing costs
- council tax in Great Britain (check council tax bands) or domestic rates in Northern Ireland,
- gas and electricity, allowing for the home’s energy use and your tariff,
- water, home insurance, TV licence and a buffer for initial repairs.
Buying your first home in the UK does not automatically give you first-time-buyer relief. For SDLT, a previous interest in a residential property anywhere in the world, including an inherited or gifted share, can disqualify you, and all joint buyers must qualify. Lender product criteria are separate from tax rules.
Purchase tax depends on the UK nation
- England and Northern Ireland – Stamp Duty Land Tax (SDLT): eligible first-time buyers pay 0% up to £300,000 and 5% on the portion from £300,001 to £500,000. Above £500,000 the relief does not apply. HMRC rules.
- Wales – Land Transaction Tax (LTT): the standard 0% band runs to £225,000. There is no separate first-time-buyer relief. Welsh Revenue Authority rules.
- Scotland – Land and Buildings Transaction Tax (LBTT): eligible first-time buyers have a 0% band up to £175,000, a saving of up to £600. Revenue Scotland rules.
These are headline bands, not a full tax calculation. Reliefs have extra conditions, such as the home being your main residence. Higher rates or surcharges can still apply, for example the 2% SDLT surcharge for non-UK residents. Ask your solicitor or conveyancer to confirm the amount. Useful tools: Stamp Duty calculator and buying costs. More context: 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. An affordability check can help you set a realistic buying budget. If you are self-employed or have missed payments, defaults or CCJs on your record (see mortgages with a poor credit score), lender choice and evidence requirements can differ.
You can read more and use a simple calculator here: mortgage affordability calculator. Its result is an indication, not a lending decision.
What to avoid
Common first-time buyer mistakes
Viewing homes without a checked budget
Checking your budget early helps you focus on homes within reach and avoid committing to an unaffordable purchase.
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
Keep a buffer for council tax in Great Britain or domestic rates in Northern Ireland, insurance, bills and initial repairs. Avoid using every pound of savings for the deposit.
FAQ
Frequently asked questions
How much deposit does a first-time buyer need in the UK?
Some mortgages allow a 5% deposit, subject to eligibility. 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, budget for legal fees, any lender valuation fee, a separate survey to assess the property’s condition, possible lender or broker fees, moving and insurance. Purchase tax depends on location: Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Land Transaction Tax (LTT) in Wales or Land and Buildings Transaction Tax (LBTT) in Scotland. Eligible first-time buyers may receive SDLT or LBTT relief, which reduces the tax and can mean none is payable below the relevant threshold (£300,000 for SDLT, where relief applies only to prices up to £500,000, and £175,000 for LBTT); Wales has no specific first-time-buyer relief. Ongoing costs include council tax in Great Britain or domestic rates in Northern Ireland, plus household bills.
Does buying my first home in the UK make me a first-time buyer for tax relief?
Not automatically: buying your first home in the UK is different from qualifying for first-time-buyer tax relief. For SDLT in England and Northern Ireland, previous qualifying residential interests anywhere in the world, including inherited or gifted shares, can disqualify you, and all joint purchasers must qualify. Scotland has its own LBTT relief rules; Wales has no specific first-time-buyer relief. Ask your solicitor or conveyancer to check your position; mortgage lenders use separate product criteria.
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.