The complete guide to getting a mortgage as a first-time buyer

How much deposit do you need?

The minimum deposit for most residential mortgages is 5% of the property value. So for a £200,000 property, you'd need at least £10,000. However, the more you can put down, the better the mortgage deals you'll be able to access.

Lenders categorise risk by loan-to-value (LTV) — the size of the mortgage as a percentage of the property's value. The lower your LTV, the lower the risk to the lender, and the better the interest rate they're willing to offer.

Indicative rates only. Actual rates vary by lender and your circumstances.

How much can you borrow?

Most lenders will offer between 4 and 4.5 times your annual income. Some specialist lenders will go to 5 or 5.5 times for those with strong finances or certain professions. For joint applications, lenders typically use the combined income of both borrowers.

But income isn't everything. Since the Mortgage Market Review in 2014, lenders must carry out a full affordability assessment. They'll look at your regular outgoings too — including loans, credit card balances, subscriptions, childcare costs, and any other committed expenditure.

The best way to understand exactly what you could borrow is to speak with a qualified mortgage adviser. We can look at your full financial picture and identify which lenders are most likely to say yes — and at the best rate.

Understanding mortgage types

Before you apply, it's important to understand the main types of mortgage available:

• Fixed rate

  Your interest rate is locked in for a set period — typically 2, 3, or 5 years. Your monthly payments stay the same regardless of what happens to Bank of England base rate. Fixed rates offer certainty and are the most popular choice for first-time buyers.

• Tracker rate

  The interest rate tracks the Bank of England base rate, plus a fixed margin. If base rate goes up, your payments go up. If it falls, your payments fall. Trackers can be cheaper when base rate is low, but carry more risk.

• Standard Variable Rate (SVR)

  Your lender's default rate, which they can change at any time. SVRs are typically significantly higher than fixed or tracker deals. You'll usually only end up on an SVR if your fixed deal expires without switching — which is something we help you avoid.

• Discounted rate

  A discount off the lender's SVR for a set period. Less predictable than a fixed rate, but can be competitive when SVRs are low.

The costs you need to budget for

Your deposit isn't the only cost involved in buying a home. Make sure you've budgeted for:

• Stamp Duty Land Tax — currently 0% on the first £425,000 for first-time buyers (on properties up to £625,000)
• Solicitor/conveyancer fees — typically £1,000–£2,000 plus disbursements
• Survey costs — from £300 (basic valuation) to £1,500+ (full structural survey)
• Mortgage arrangement fees — some lenders charge up to £999–£1,999, though many fee-free options exist
• Removal costs — varies by distance and volume
• Buildings insurance — required from exchange of contracts
• Initial furnishing and decorating costs

The mortgage process, step by step

Government schemes that can help

Several government schemes are designed to help first-time buyers get onto the property ladder:

• Shared Ownership

  Buy a share of a property (between 25% and 75%) and pay subsidised rent on the remaining share. You only need a mortgage for your share, significantly reducing the deposit required. You can buy more shares over time (known as staircasing).

• Lifetime ISA (LISA)

  Save up to £4,000 per year and receive a 25% government bonus (up to £1,000 per year) on contributions. Can be used towards a first home purchase of up to £450,000. You must be aged 18–39 to open one.

• Right to Buy

  If you're a qualifying council or housing association tenant, you may be eligible to purchase your home at a discount of up to £102,400 (£136,400 in London). The discount can be used as your deposit.

• Guarantor mortgages

  A family member — typically a parent — offers their property or savings as additional security, allowing lenders to offer a higher income multiple or accept a smaller deposit.

Preparing your finances

Before you apply for a mortgage, it's worth taking steps to put yourself in the strongest possible position:

• Check your credit report — use Experian, Equifax, or TransUnion (all offer free checks). Dispute any errors and make sure you're on the electoral roll
• Avoid taking out new credit in the 3–6 months before applying
• Reduce existing debts where possible — especially credit card balances
• Keep your bank statements clean — lenders look back 3 months and will notice excessive gambling, payday loans, or erratic spending
• Save consistently — regular savings demonstrate financial discipline to lenders
• Keep your employment stable — changing jobs shortly before applying can complicate things

Frequently asked questions