What is a first-time buyer mortgage?
By

A first-time buyer is someone who’s never bought a house before. First-time buyers generally have access to the same mortgage deals as other buyers, although some lenders offer mortgages tailored towards them.

You’re classed as a first-time buyer if you:

  • Have never owned of part-owned a home before, anywhere in the world

You won’t be classed as a first-time buyer if you:

  • Have ever owned or part owned a home anywhere in the world

  • Have inherited or had a home bought for you, even if you’ve now sold it

  • You’re buying jointly with someone who has previously owned a property

How to get a mortgage as a first-time buyer

  • Figure out your finances 

The best time to apply for a mortgage is when you’ve saved up the money you need for a deposit and you’re in a stable financial position. You should feel comfortable handling your mortgage repayments (and all the other costs associated with buying a house!)

Mortgage providers will assess your affordability and the risk of lending to you during the application process. So, to get an idea of how a lender might view you, check your credit rating and get some tips on how to boost your score before applying.

  • Get your mortgage in principle 

Find out how much a lender might be willing to offer you by getting a mortgage agreement in principle (also known as an agreement in principle or decision in principle). While it doesn’t guarantee a lender will give you a mortgage, knowing how much you can borrow can help you search for properties within your budget – and you may find estate agents won’t even let you view properties without one.

  • Find your dream home  

With your mortgage in principle sorted, it’s time to find a house you love and put an offer in. While you’ll want to buy your dream home first time, it’s common to have to compromise on at least one element, such as considering a more affordable area or a smaller home than you initially planned.

  • Compare first-time buyer mortgages

Once you know which property you want to buy, get in touch with your lender or broker to find out what mortgage options are available to you. When you work with a broker, you’ll get a tailored recommendation from across many first-time buyer mortgage deals.

  • Submit a formal mortgage application 

It’s time to gather everything you need for your mortgage application, including proof of identity, proof of your current address, proof of income and three to six months’ of bank statements. If you work with a broker like Mojo, they’ll handle all the mortgage application paperwork for you – for free! At this stage, your lender will conduct an in-depth assessment, including a hard credit check and property valuation.

How much can I borrow as a first-time buyer?

Most lenders base loan size on a multiple of your annual income. This is typically between four to four-and-a-half times what you earn, according to recent mortgage statistics. The fact that you’re buying for the first time won’t usually make a difference.

Lenders also look at your affordability, however, which is not quite as straightforward as your income. They’ll need to weigh your income against any debts and regular expenses you have.

How much deposit do I need for a first-time buyer mortgage?

The deposit you need typically depends on the lender and the type of mortgage you are applying for, but most lenders require a deposit of at least 5% of the property value.

If you can afford a larger deposit, and therefore bring your loan-to-value (LTV) ratio down, you may be eligible for more competitive mortgage rates though. This could result in lower monthly payments.

Let’s take a look at how much deposit you would need per LTV, in order to buy an average home* in the UK.

*Average property value taken from Zoopla’s House Price Index, February 2025

Average property value Deposit percentage Actual deposit needed
£267,200 5% £13,360
£267,200 10% £26,720
£267,200 15% £40,080
£267,200 20% £53,440

Which first-time buyer mortgage is right for me?

There are a range of mortgage products out there that could be suitable for first-time buyers.