First-Time Buyer Mortgage

Your first home starts with understanding your mortgage.

Buying your first home can feel complicated. Learn how first-time buyer mortgages work, what lenders consider, how deposits affect borrowing and which costs to plan for before making a property purchase.

Estimate Mortgage Payments → Read Mortgage Guide

FIRST HOME Start with your budget

Buying journey Planning

KEY STEP Know your affordability

Bright home interior for first-time home buyers

FIRST-TIME BUYER The right mortgage starts with the right numbers. Understand your deposit, income, expenses and potential monthly repayment before making an offer.

First Home Basics

What is a first-time buyer mortgage?

A first-time buyer mortgage is a mortgage used by someone purchasing their first home. There is not necessarily one single mortgage product that applies to every first-time buyer. Instead, you may be able to choose from different mortgage structures depending on your circumstances and lender criteria.

The most important starting point is understanding how much you could realistically afford to borrow and how the monthly repayments would fit into your household budget.

01 Your income, regular expenses and financial commitments can influence how much you may be able to borrow.

02 Your deposit affects the amount you need to borrow and can influence the loan-to-value ratio.

03 Mortgage rates, fees and the mortgage term all affect the overall cost of buying with a mortgage.

Your Buying Journey

Five steps to prepare for your first mortgage.

Breaking the process into smaller steps can make your first home purchase easier to understand and plan for.

Review your finances

Understand your income, expenses and existing credit.

Build your deposit

Establish how much money you can put towards the purchase.

Estimate affordability

Consider a mortgage amount and monthly repayment that fits.

Compare options

Review mortgage rates, terms, fees and features.

Plan your purchase

Budget for the property and additional buying costs.

Deposit & LTV

Your deposit is more than just the money you put down.

The size of your deposit determines how much you need to borrow. It also affects your loan-to-value ratio, commonly known as LTV.

A larger deposit generally means you need to borrow a smaller proportion of the property's value. However, keeping enough money available for other purchase costs and an appropriate financial buffer is also important.

Illustrative example 90% LTV

Property price £250,000 Example only

Deposit £25,000 10% of property value

Deposit 10%

! A larger deposit can reduce the amount borrowed, but you should also consider other buying costs and keep an appropriate emergency buffer.

Couple planning finances for buying their first home

AFFORDABILITY Borrowing is only one part of the monthly budget.

Mortgage Affordability

How much could a first-time buyer borrow?

There is no universal mortgage amount for every first-time buyer. Lenders can consider your income, regular spending, existing debts, credit history and other financial information when assessing affordability.

It is also useful to look beyond the maximum amount you might potentially borrow. A mortgage should fit comfortably within your wider household budget, including future changes in costs and interest rates.

01 Income: Your earnings can form an important part of the affordability assessment.

02 Expenses: Regular household costs can affect how much disposable income remains.

03 Existing borrowing: Loans, credit cards and other commitments may affect affordability.

04 Mortgage term: The term can affect the monthly payment and total interest cost.

Beyond The Deposit

Remember the other costs of buying your first home.

Your deposit is important, but it is not the only cost to consider when planning a first property purchase.

Mortgage costs

Depending on the product, there may be mortgage-related fees such as arrangement or product fees.

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Property costs

Consider surveys, valuation costs, property insurance, moving expenses and potential maintenance costs.

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Legal costs

Conveyancing and other transaction-related costs should be included in your overall buying budget.

Before Applying

A simple first-time buyer preparation checklist.

Getting your finances organised before applying for a mortgage can make the process easier to understand.

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Things worth preparing

✓ Review your income and regular monthly spending.

✓ Understand how much deposit you have available.

✓ Check your existing credit commitments.

✓ Estimate a monthly mortgage payment that fits your wider budget.

Things to think about carefully

→ Do not assume the maximum amount you can borrow is necessarily the amount you should borrow.

→ Consider how your payments could change when a fixed-rate period ends or rates move.

→ Keep money available for unexpected household expenses after completion.

→ Review the full mortgage cost rather than comparing interest rates alone.

Frequently Asked Questions

First-Time Buyer Mortgage FAQs

Answers to common questions about deposits, affordability, mortgage applications and first homes.

A first-time buyer mortgage is a mortgage used to purchase a person's first home. There is no single mortgage product that applies to everyone; first-time buyers can have access to different mortgage structures depending on their circumstances and lender criteria.

The deposit required depends on the mortgage product, lender criteria and your circumstances. A larger deposit generally means you need to borrow less relative to the property's value, although you should also budget for other purchase costs and maintain an appropriate buffer.

Some mortgage products may be available with smaller deposits, subject to lender criteria and affordability. A smaller deposit generally means a higher loan-to-value ratio, so it is important to compare the full mortgage terms and costs.

Lenders can consider factors including income, regular household spending, existing debts, credit history and other financial information. Each lender has its own affordability criteria, so borrowing limits can differ.

In addition to the deposit, buyers may need to consider mortgage fees, legal and conveyancing costs, surveys, valuation-related costs, moving expenses, insurance and ongoing property costs. The exact costs depend on the purchase.

Not necessarily. A lender's maximum affordability assessment does not mean that borrowing the maximum is the best option for your household. Consider your wider budget, future expenses, possible rate changes and the financial buffer you want to maintain.

Your first home deserves a well-planned mortgage.

Understand your deposit, estimate your repayments, compare mortgage options and build a realistic budget before taking the next step towards your first home.

Estimate Mortgage Payments → Explore Mortgage Guide