Buying your first home is one of the biggest financial decisions most people make, and the mortgage process can feel overwhelming if you have never been through it before. This article walks through the basics of first time buyer mortgages in the UK — what lenders look for, how much deposit you need, and the government schemes designed to help.
What counts as a first time buyer?
In the UK, a first time buyer is generally defined as someone who has never owned a residential property, either in the UK or abroad. This definition matters for certain government schemes and for Stamp Duty relief, which can offer savings specifically for first time buyers on properties up to a certain value.
How much deposit do you need?
Most mortgage lenders require a minimum deposit of 5% to 10% of the property's value, though some schemes allow lower deposits in specific circumstances. A larger deposit generally gives you access to better mortgage rates, as lenders view a lower loan-to-value (LTV) ratio as less risky. For example, a 90% LTV mortgage (10% deposit) will typically have a higher interest rate than an 80% LTV mortgage (20% deposit).
Building a deposit is often the biggest hurdle for first time buyers — see our guide to building savings and our guide to Cash ISAs for ways to save towards your deposit tax-efficiently, including the Lifetime ISA which offers a government bonus specifically for first home savings.
How much can you borrow?
Lenders calculate how much they are willing to lend based on an affordability assessment, considering your income, outgoings, existing debts, and credit history. As a rough guide, many lenders will lend up to 4 to 4.5 times your annual income, though this varies significantly between lenders and depends on your specific financial circumstances. A mortgage in principle is a useful first step to understand roughly how much you might be able to borrow before you start house hunting.
How does your credit score affect your mortgage application?
Your credit history plays a significant role in mortgage approval and the interest rate you are offered. A strong credit score generally improves your chances of approval and access to better rates. See our guide to improving your credit score for practical steps you can take before applying.
Government schemes for first time buyers
Several schemes exist to support first time buyers in the UK, though availability and details change over time — always check current schemes at gov.uk before relying on this information.
Lifetime ISA
The Lifetime ISA allows people aged 18 to 39 to save up to £4,000 per year towards a first home or retirement, with the government adding a 25% bonus on top. This can provide a meaningful boost to your deposit savings.
Shared ownership
Shared ownership schemes allow you to buy a percentage of a property (typically 25% to 75%) and pay rent on the remaining share, reducing the deposit and mortgage required upfront. See our full guide to shared ownership for how this works.
First Homes scheme
Some areas offer First Homes schemes, providing new-build properties at a discount (typically 30% to 50% below market value) for eligible first time buyers, including key workers and local residents in some cases.
The mortgage application process
The typical process involves getting a mortgage in principle, finding a property and having your offer accepted, making a full mortgage application with your chosen lender or through a broker, the lender carrying out a valuation of the property, and receiving a formal mortgage offer once the lender is satisfied with all checks. This process can take anywhere from a few weeks to a couple of months depending on the complexity of your application and the property chain.
Should you use a mortgage broker?
A mortgage broker can search across multiple lenders to find deals suited to your circumstances, which can be particularly valuable for first time buyers navigating an unfamiliar process. Brokers may have access to deals not available directly to the public, and can advise on which lenders are most likely to accept your application based on your specific financial situation.