Last updated: 15 November 2024

    First-Time Buyer's Guide to UK Mortgages

    Everything you need to know to buy your first home in the UK

    5-10%

    Minimum deposit typically required

    4.5x

    Typical income multiple for borrowing

    £0

    Stamp duty for first-time buyers (up to £425k)

    Your First Home Journey

    Follow these steps to navigate the home buying process

    1

    Check Your Credit Score

    Ensure your credit report is accurate and improve your score if needed

    Lenders use your credit score to assess risk. Check for errors and consider credit-building strategies.

    2

    Save Your Deposit

    Aim for at least 5-10% of the property value

    Larger deposits often mean better interest rates and more mortgage options.

    3

    Get a Mortgage Agreement in Principle

    Know how much you can borrow before house hunting

    This shows sellers you're a serious buyer and gives you confidence when making offers.

    4

    Factor in Additional Costs

    Budget for legal fees, surveys, and moving costs

    Typically add 3-5% of property value for all additional costs beyond the deposit.

    5

    Find Your Property

    Start your property search within your budget

    Consider location, transport links, local amenities, and future growth potential.

    6

    Make an Offer

    Negotiate the price and agree terms

    Research comparable sales and consider getting a survey to inform your offer.

    Government Help Schemes

    Financial assistance available for first-time buyers

    Help to Buy (Legacy)

    Closed to new applicants

    Government loan for new-build properties

    Up to 20% loan (40% in London) interest-free for 5 years

    Shared Ownership

    Available

    Buy a share (25-75%) and pay rent on the rest

    Available for properties up to £80,000 in some areas

    Right to Buy

    Available

    Buy your council home at a discount

    Discounts up to £87,200 (£116,200 in London)

    First Homes Scheme

    Available

    New homes at 30-50% discount for first-time buyers

    Available in participating developments

    Top Tips for First-Time Buyers

    Do:

    • • Get pre-approved for a mortgage before viewing properties
    • • Factor in all costs including solicitor fees and surveys
    • • Consider the total monthly cost, not just the mortgage
    • • Think about future needs and resale value
    • • Get a proper survey, not just a valuation

    Don't:

    • • Stretch your budget to the absolute maximum
    • • Forget to budget for ongoing maintenance costs
    • • Rush into the first property you see
    • • Ignore the importance of location
    • • Forget to check the local area at different times

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