First-Time Buyer Mortgages in the UK
Buying your first home is one of the biggest financial steps you’ll take. This guide covers what UK lenders look at, the deposit options available, and the schemes that may help.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Quick summary
- Most lenders need a minimum 5% deposit, but 10–15% unlocks much better rates.
- Government-backed options include the Mortgage Guarantee Scheme and the Lifetime ISA.
- Affordability assessments are typically 4× to 4.75× combined income, less commitments.
- A credit footprint of 3–6 months helps — being on the electoral roll, settled at one address, etc.
- A mortgage agreement in principle (AIP) is usually required before estate agents take offers seriously.
What lenders may look at
- Combined income
- Deposit size and source (savings, gift, LISA)
- Credit history and active commitments
- Employment stability
- Property type and construction
Documents you may need
- Photo ID and proof of address
- 3 months of bank statements
- Latest 3 months payslips (employed)
- 2 years SA302s + tax year overviews (self-employed)
- Proof of deposit and any gift letter
- Latest P60
Common issues
- Deposit smaller than 10% — many lenders cap LTV at 90% on flats, ex-local-authority and new build.
- Recent job change inside probation — most lenders prefer 3+ months past probation.
- Thin credit file — start building one well before applying.
- Spending patterns showing payday loans or persistent overdraft — lenders look at the last 3 months of bank statements.
Frequently asked questions
How much deposit do I need as a first-time buyer? +
Most UK lenders accept 5% but rates improve materially at 10% and again at 15–25%. Some lenders cap higher LTV products on new build or flats.
Does Help to Buy still exist? +
The Help to Buy equity loan scheme in England closed to new applications in October 2022. Shared Ownership and the Mortgage Guarantee Scheme remain available.
Can I use a gifted deposit? +
Yes. Most lenders accept gifted deposits from immediate family with a signed gift letter confirming the funds are non-refundable and the gifter has no interest in the property.
What credit score do I need? +
There’s no single threshold — UK lenders score applicants on their own internal model. A clean payment history for 12 months and being on the electoral roll helps.
How long does the process take? +
4–8 weeks from offer accepted to mortgage offer is typical. Allow another 4–6 weeks for completion if there is a chain.
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