First-Time Buyer Guide: How to Buy Your First Home in the UK
Buying your first home can feel exciting, stressful, and confusing all at once. You may be trying to understand deposits, mortgage rates, affordability checks, solicitor costs, surveys, Stamp Duty, and what happens after your offer is accepted.
This First-Time Buyer Guide explains the UK home buying journey in plain English. It is designed to help you understand what to do before applying for a mortgage, how lenders assess you, what costs to prepare for, and when to speak with a mortgage adviser.
Connect Experts helps you find FCA-authorised mortgage advisers across the UK. You can search by location, language, gender, and mortgage expertise, including advisers who support first-time buyers.
What Is a First-Time Buyer?
A first-time buyer is usually someone buying a residential property who has never owned a home before, either in the UK or overseas.
If you are buying with another person, lenders and tax rules may look at both applicants. If one person has owned property before, this may affect whether you qualify for first-time buyer reliefs or certain schemes.
You may be a first-time buyer if:
- You have never owned a residential property
- You are buying a home to live in
- You are applying alone or with another eligible first-time buyer
- You need a mortgage to buy your first property
You may not be treated as a first-time buyer if:
- You previously owned a property
- You inherited a property
- You owned a property overseas
- You are buying with someone who has owned before
- You are buying the property mainly as an investment
Always check your position before relying on first-time buyer benefits.
What Is a First-Time Buyer Mortgage?
A first-time buyer mortgage is a residential mortgage used to buy your first home. The mortgage is secured against the property, and you repay the loan over an agreed term.
Most first-time buyers choose a repayment mortgage. This means each monthly payment covers interest and part of the loan, so the balance reduces over time.
A mortgage adviser can help you understand:
- How much you may be able to borrow
- What deposit may you need
- Which lenders may consider your income
- What documents should you prepare
- Whether a fixed, tracker, or variable rate could suit you
- What costs to expect before completion
First-Time Buyer Journey: The Steps From Saving to Moving In
Most first-time buyers follow a journey like this:
- Check your credit report
- Work out your deposit
- Estimate what you can afford each month
- Prepare your documents
- Speak with a mortgage adviser
- Get an Agreement in Principle
- Start viewing properties
- Make an offer
- Apply for the mortgage
- Arrange a survey and a solicitor
- Receive your mortgage offer
- Exchange contracts
- Complete and move in
The journey can vary depending on your circumstances, property type, lender, solicitor, and the speed of the chain.
How Much Deposit Does a First-Time Buyer Need?
Many first-time buyers aim for a deposit of at least 5% to 10% of the property price. A larger deposit can give you access to more mortgage options and may reduce your monthly repayments.
Example:
- Property price: £250,000
- 5% deposit: £12,500
- 10% deposit: £25,000
- 15% deposit: £37,500
The deposit affects your loan-to-value, also known as LTV. A 10% deposit usually means a 90% LTV mortgage.
Deposit size is important, but it is not the only factor. Lenders will also assess your income, spending, credit history, employment, debts, and the type of property you are buying.
How Much Can First-Time Buyers Borrow?
The amount you can borrow depends on affordability. Lenders look at your income and regular commitments before deciding whether the mortgage is affordable.
They may consider:
- Salary or self-employed income
- Bonuses, overtime, or commission
- Credit card balances
- Personal loans
- Childcare costs
- Student loans
- Dependants
- Regular bills
- Credit history
- Deposit size
- Mortgage term
- Interest rate stress testing
Some lenders are more flexible than others. This is why two buyers with similar incomes may receive different borrowing amounts from different lenders.
A first-time buyer mortgage broker can compare lenders and explain which options may fit your circumstances.
What Costs Should First-Time Buyers Budget For?
Your deposit is only one part of the cost of buying a home. You should also prepare for other upfront and ongoing costs.
Main buying costs
- Mortgage arrangement or product fees
- Valuation fees
- Solicitor or conveyancing fees
- Search fees
- Survey costs
- Stamp Duty, if applicable
- Buildings insurance
- Moving costs
- Furniture and essential repairs
- Broker fee, if charged
Ongoing costs after moving in
- Mortgage repayments
- Council Tax
- Utilities
- Broadband
- Insurance
- Service charge, if leasehold
- Ground rent, if applicable
- Maintenance and repairs
A good first-time buyer budget should include both the cost of buying and the cost of living in the property after completion.
Do First-Time Buyers Pay Stamp Duty?
First-time buyers in England and Northern Ireland may qualify for Stamp Duty Land Tax relief if they meet the rules.
Current first-time buyer relief means:
- No SDLT on the first £300,000
- 5% SDLT on the portion from £300,001 to £500,000
- No first-time buyer relief if the property price is over £500,000
Stamp Duty rules are different in Scotland and Wales. Always check the current rules before making an offer, especially if your budget is close to a threshold.
What Documents Do First-Time Buyers Need for a Mortgage?
Preparing your documents early can reduce delays.
You may need:
- Passport or driving licence
- Proof of address
- Recent payslips
- Latest P60
- Bank statements
- Proof of deposit
- Gifted deposit letter, if family is helping
- Details of loans or credit cards
- Evidence of bonuses, overtime, or commission
- Tax calculations and accounts if self-employed
- Proof of visa or residency status, if relevant
Lenders may ask for extra documents depending on your job, income, deposit source, credit history, or property type.
How to Improve Your Mortgage Chances Before Applying
You can improve your position before applying by getting your finances organised.
Useful steps include:
- Check your credit reports with the main credit reference agencies
- Correct errors on your credit file
- Register on the electoral roll if eligible
- Avoid payday loans and unnecessary borrowing
- Reduce credit card balances where possible
- Keep bank statements tidy
- Avoid missed payments
- Save consistently
- Avoid large unexplained transfers
- Keep evidence of your deposit source
Do not apply to several lenders at once without advice. Multiple credit checks can affect your file and may make future applications harder.
What Is an Agreement in Principle?
An Agreement in Principle, sometimes called an AIP, Decision in Principle, or DIP, is an early indication of how much a lender may be willing to lend.
It is not a mortgage offer. The lender will still need to assess your full application, documents, credit file, and the property.
An AIP can help you:
- Understand your likely budget
- Show estate agents you are serious
- Make offers with more confidence
- Identify potential issues early
- Avoid viewing homes outside your price range
A mortgage adviser can help you decide when to get an AIP and which lender to approach.
Fixed Rate, Tracker Rate, and Variable Rate Mortgages
First-time buyers usually need to choose between different mortgage rate types.
Which is best for a first-time buyer?
There is no single best option for everyone. A fixed rate may suit buyers who want payment certainty. A tracker may suit buyers who can manage payment changes and want more flexibility.
A mortgage adviser can explain the risks, costs, fees, and early repayment charges before you decide.
Fixed-rate mortgage
A fixed-rate mortgage keeps your interest rate the same for a set period, often 2, 3, or 5 years.
This can help with budgeting because your monthly payment stays the same during the fixed period.
Fixed-rate mortgage
A fixed-rate mortgage keeps your interest rate the same for a set period, often 2, 3, or 5 years.
This can help with budgeting because your monthly payment stays the same during the fixed period.
Standard variable rate
A standard variable rate is the lender’s own rate. It can change and is often used after an initial mortgage deal ends.
Many borrowers review their mortgage before moving onto the standard variable rate.
Should First-Time Buyers Use a Mortgage Broker?
You do not have to use a mortgage broker, but many first-time buyers choose to because the process can feel unfamiliar.
A mortgage broker can help you:
- Understand how much you may be able to borrow
- Compare lenders
- Explain mortgage terms in plain English
- Review your documents before the application
- Identify lenders that fit your circumstances
- Help with low deposit, gifted deposit, or complex income cases
- Support you from application to offer
Connect Experts is a mortgage adviser directory and matching platform. We help you find advisers who can provide mortgage advice based on your circumstances.
First-Time Buyer Schemes and Support
Some first-time buyers may be eligible for schemes or savings support. Availability and criteria can change, so always check the current rules before relying on any scheme.
Options may include:
- Shared Ownership
- First Homes, where available locally
- Lifetime ISA savings
- Family-assisted mortgage options
- Gifted deposits
- Guarantor-style support, where suitable
Not every scheme is suitable for every buyer. Some have income limits, property price limits, location rules, or resale conditions.
A mortgage adviser can help you understand whether a scheme fits your long-term plans.
Buying With a Gifted Deposit
Many first-time buyers receive help from family. A gifted deposit is money given to you with no requirement to repay it.
Lenders usually want written confirmation that:
- The money is a gift
- It does not need to be repaid
- The person gifting it will not own part of the property
- The funds come from an acceptable source
Your solicitor may also need to complete checks on the source of funds.
If the money is a loan rather than a gift, tell your adviser. A loan can affect affordability and lender choice.
First-Time Buyer Checklist
Before speaking to an adviser
- Check your credit report
- Work out your deposit
- Estimate your monthly budget
- List your debts and regular commitments
- Gather payslips, bank statements, and ID
- Confirm whether any deposit is gifted
- Think about your preferred location
- Consider whether you want in-person, phone, or online advice
Before making an offer
- Get an Agreement in Principle
- Check likely monthly repayments
- Budget for legal fees and survey costs
- Check Stamp Duty rules
- Ask about leasehold costs, if relevant
- Understand what is included in the sale
- Consider local transport, schools, and future resale demand
Before exchange
- Review your mortgage offer
- Read the solicitor’s report
- Check survey findings
- Arrange buildings insurance
- Confirm your deposit funds are ready
- Ask questions before signing anything
Common First-Time Buyer Mistakes
Try to avoid these common mistakes:
- Viewing homes before checking affordability
- Forgetting about legal fees and moving costs
- Assuming your bank will offer the best mortgage
- Applying to several lenders without advice
- Ignoring credit report issues
- Underestimating leasehold costs
- Making large financial changes before completion
- Not asking about early repayment charges
- Relying on outdated Stamp Duty or scheme information
Buying your first home is a major financial decision. Clear advice can help you avoid delays and unexpected costs.
Why Use Connect Experts?
Connect Experts helps you search for mortgage advisers who match your needs.
You can search by:
- Location
- Language
- Gender
- Mortgage type
- Adviser expertise
- Appointment preference
This is useful if you want an adviser who understands first-time buyer mortgages, explains things clearly, and communicates in a way that works for you.
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FAQ: First-Time Buyer Guide
| Question | Answer |
|---|---|
| What is a first-time buyer? | A first-time buyer is usually someone buying their first residential property and who has never owned a home before. If you are buying with someone else, both applicants may need to meet the relevant criteria for certain reliefs or schemes. |
| How much deposit do I need as a first-time buyer? | Many first-time buyers aim for at least 5% to 10% of the property price. A larger deposit may give you access to more mortgage options and lower monthly repayments. |
| Can I get a mortgage with a 5% deposit? | Some lenders may offer mortgages with a 5% deposit, subject to criteria. Your income, credit history, affordability, property type, and wider circumstances will still be assessed. |
| Do first-time buyers pay Stamp Duty? | First-time buyers in England and Northern Ireland may qualify for relief. Current rules provide no SDLT on the first £300,000 and 5% on the portion from £300,001 to £500,000. If the property price is over £500,000, first-time buyer relief is not available. |
| What is an Agreement in Principle? | An Agreement in Principle is an early indication from a lender of how much you may be able to borrow. It is not a final mortgage offer. |
| Should I speak to a mortgage adviser before viewing properties? | Yes, it can help. Speaking to an adviser early can give you a clearer idea of your budget, deposit options, monthly repayments, and the documents you need. |
| Can I get a mortgage if I am self-employed? | Yes, many self-employed people get mortgages. Lenders usually want evidence of income, such as bank account statements, tax calculations, and business bank statements. Requirements vary by lender. |
| Can I use a gifted deposit? | Yes, many lenders accept gifted deposits from family members. The person giving the money usually needs to confirm it is a gift and not a loan. |
| Is a fixed rate mortgage best for first-time buyers? | A fixed rate is popular with first-time buyers because it gives payment certainty for a set period. However, the right choice depends on your budget, risk tolerance, fees, and future plans. |
| Why use Connect Experts as a first-time buyer? | Connect Experts helps you find FCA-authorised mortgage advisers across the UK. You can search by location, language, gender, and expertise to help you choose an adviser who fits your needs. |