A first-time buyer is anyone who has never owned property, either individually or as part of a couple. This status often unlocks access to exclusive mortgage products and government-backed schemes such as Shared Ownership or Help to Build, making it easier to enter the property market for the first time.

Benefits of a First-Time Buyer Mortgage

First-time buyers can benefit from lower deposit requirements, with many lenders offering products at up to 95% loan-to-value, meaning only a 5% deposit is needed. However a 100% mortgage are often offered by some lenders. Being a first-time buyer also offers the advantage of not being part of a property chain, which can make your offer more appealing to sellers and speed up the purchase process. Flexible mortgage options, such as gifted deposits, guarantor schemes, and Joint Borrower Sole Proprietor (JBSP) arrangements, can help overcome affordability challenges while preserving first-time buyer perks like stamp duty concessions. Additionally, government support continues to provide opportunities through schemes such as Shared Ownership, Help to Build, and Right to Buy.

Deposit Insights

The minimum deposit for a first-time buyer mortgage typically starts at around 5% of the property price, though a larger deposit may secure more favourable terms. Alternative funding options are available, with contributions from family or friends through gifted deposits often supporting up to six contributors. These arrangements can make it easier to meet lender requirements and access higher-value properties.

Expert Guidance Matters

Using a mortgage adviser or broker can provide personalised advice, help compare lender offers, guide you through paperwork, and increase the chances of approval. Brokers are especially valuable for first-time buyers who are self-employed, have smaller deposits, or face credit challenges. They can access a wider range of lenders, simplify complex processes, and negotiate deals that are tailored to first-time buyer needs.

Practical Tips for First-Time Buyers

It is essential for first-time buyers to check their credit score to understand what lenders will see and make improvements where possible. Conducting thorough research on lenders, interest rates, and available products helps ensure informed decisions. Setting a realistic budget, including monthly repayments and living costs, is crucial. Obtaining a mortgage in principle strengthens your position when house-hunting. Planning for additional costs such as solicitor fees, valuations, stamp duty, insurance, removals, and furnishing will prevent unexpected financial strain. Affordability tools and online calculators can help estimate borrowing potential, though criteria vary by lender, and brokers can simplify this process.

Industry Trends and Regulatory Support

In 2024, first-time buyers accounted for approximately 35–40% of UK mortgage completions, highlighting their significance in the housing market. The number of first-time buyer purchases rose nearly 19%, totalling 341,068 transactions—the highest share since 2014. New government policies are easing lending rules and introducing mortgage guarantees, making 95% LTV mortgages more accessible and further supporting first-time buyers entering the property market.