First-Time Buyer Mortgages Guides & Advice

A first-time buyer is generally someone who has never owned a residential property in the UK or abroad. Definitions can vary for mortgage products, government schemes and property tax, especially where one person in a joint application has owned property before. Being treated as a first-time buyer by a lender does not necessarily mean you qualify for every tax relief or scheme. Check the relevant rules before relying on a particular benefit.

The minimum deposit depends on lender criteria, the property and the mortgages available at the time. Some products may accept a relatively small percentage, while a larger deposit can improve the loan-to-value ratio and potentially widen the choice of products. You should also budget separately for legal work, surveys, moving costs, insurance and any applicable tax. Your deposit source must be acceptable and evidenced to the lender and solicitor.

Many lenders accept gifted deposits from close family members, subject to checks. The person providing the gift normally confirms that the money is not repayable and that they will have no legal interest in the property. Evidence of the funds and their source is usually required for lender and anti-money-laundering purposes. If the money is a loan rather than a gift, this must be disclosed because it may affect affordability and lender acceptance.

An Agreement in Principle, sometimes called a Decision in Principle, is an initial indication of how much a lender may be prepared to lend based on limited information and usually a credit check. It can help when viewing properties or making an offer, but it is not a mortgage offer. Approval still depends on a full assessment of your income, expenditure, documents, credit profile and the property valuation.

In addition to the deposit, allow for conveyancing, searches, a valuation or independent survey, mortgage and broker fees where applicable, removals, buildings insurance and initial household costs. Property tax may also apply depending on the price, location and your circumstances. Keeping an emergency reserve is sensible because repairs or unexpected costs can arise after completion. A full budget should be prepared before committing to a purchase.

There is no fixed timescale. A straightforward purchase may still take several weeks, while chains, legal issues, surveys, leasehold enquiries or lender requirements can extend the process. After an offer is accepted, the main stages are mortgage application, valuation, conveyancing, searches, enquiries, exchange of contracts and completion. Do not give notice on rented accommodation or make irreversible arrangements until your solicitor confirms it is appropriate.

Yes. First-time buyers commonly purchase jointly with a partner, friend or family member. The lender assesses the combined application, but both applicants are normally jointly responsible for the full mortgage debt. Your solicitor can explain ownership structures such as joint tenants and tenants in common, and a declaration of trust may be appropriate where deposits or ownership shares differ. Consider how payments and ownership would be managed if circumstances changed.

Speaking to an adviser before viewing seriously can help you understand an affordable price range, likely deposit requirements, monthly costs and the documents needed. It also allows time to identify issues with credit files or income evidence before making an offer. Advice should be based on your circumstances and not simply the maximum available borrowing, because ongoing affordability and other homeownership costs matter.