Mortgages · First Time Buyers
Your first home, made less daunting.
Buying your first home means new terms, new numbers and a lot of forms. We start with a clear picture of your position — deposit, income, credit — before you start viewing, so offers move faster when you find the right place.
First-time buyer mortgages — key figures at a glance
- Minimum deposit
- 5% of the purchase price (95% LTV) — the lowest available through most mainstream lenders. A 10% deposit opens a meaningfully wider product range at better rates.
- How much you can borrow
- Most lenders apply 4–4.5× annual income. Professional mortgage schemes (doctors, lawyers, accountants and similar) can go to 5.5× income at qualifying income thresholds.
- Stamp duty (England)
- No SDLT on the first £425,000. 5% on the portion between £425,001 and £625,000. Properties over £625,000 do not qualify for first-time buyer relief — standard rates apply.
- Lifetime ISA
- Up to £4,000 per year, with a 25% government bonus (up to £1,000/year). Bonus can be used as deposit on a first home worth up to £450,000. Withdrawal penalties apply outside qualifying purposes.
- Gifted deposits
- Accepted by most lenders — must be a genuine gift, not a loan. Donor signs a gifted deposit letter confirming no repayment is expected. Donor's source of funds must be documented.
- New builds
- Some lenders cap LTV on new build flats at 85%. Not all lenders operate in the new build market — using a broker avoids wasted applications to lenders who will not proceed.
Rates and thresholds correct at time of review, September 2026. Your home may be repossessed if you do not keep up repayments on your mortgage.
How does a first-time buyer mortgage work in the UK?
A first-time buyer mortgage is a standard residential mortgage for someone who has never previously owned property. The core mechanics — deposit, income assessment, credit check, valuation — are the same as for any purchase. The differences are in the deposit reliefs and government schemes available:
- Minimum deposit: 5% of the purchase price (95% LTV) is the lowest available through most mainstream lenders. A 10% deposit opens a meaningfully wider product range at better rates. The larger the deposit relative to the property value, the lower the loan-to-value and the more competitive the available rate.
- Stamp duty relief: first-time buyers in England pay no SDLT on the first £425,000 of the purchase price, and 5% on the portion between £425,001 and £625,000. Properties above £625,000 do not qualify for the relief and are assessed at standard rates.
- Lifetime ISA (LISA): contributions of up to £4,000 per year receive a 25% government bonus (up to £1,000 per year). The LISA and its bonus can be used as part of the deposit on a first home worth up to £450,000. Withdrawal penalties apply if not used for a qualifying purpose.
- How much can I borrow: most lenders lend 4 to 4.5 times annual income. Some professional mortgage schemes go higher — up to 5.5 times — for doctors, lawyers, accountants and other qualifying professions, typically at higher income thresholds.
- New builds: some lenders apply tighter LTV restrictions on new build flats (often capped at 85% LTV). Not all lenders operate in the new build market. Using a broker who knows the new build lender panel avoids wasted applications to lenders who will not proceed.
- Gifted deposits: a deposit gifted by a family member is acceptable to most lenders, provided it is a genuine gift (not a loan) and the donor signs a gifted deposit letter confirming no repayment is expected. Source of funds for the gift must be documented.
See our complete first-time buyer guide for a step-by-step walkthrough of the full process from Mortgage Passport to completion.
Case study: first-time buyer joint application with adverse credit — joint purchase completed where one applicant had missed payments and a settled default. The right deposit level and lender selection were the two variables that unlocked the offer.
Real outcome
First-time buyer joint purchase — one applicant with adverse credit history: joint application completed where one applicant had missed payments and a settled default on their credit file. The obstacle was not the credit issue itself but approaching the right lender in the right way — the deposit level and lender selection were the two variables that unlocked the offer. Both applicants are now homeowners.
Want a deeper understanding?
Our complete first-time buyer guide covers deposits, government schemes and the full application process.
Who this is for
- Buying with no previous mortgage
- Using a Lifetime ISA or Help to Buy equity
- Buying with a partner or friend
- Gifted deposit from family
- New to permanent employment
- Renting now, ready to stop
How it works
Mortgage Passport
Tell us about your income, deposit and what you're hoping to buy.
Readiness review
See an indicative position — and what would strengthen it further.
Adviser match
A first-time-buyer specialist adviser takes on your case.
Agreement in Principle
Move to a formal lender AIP when you're ready to make offers.
Common questions
- Most lenders require a minimum deposit of 5% of the purchase price, though a 10% deposit typically opens up a wider range of products and better rates. The larger your deposit relative to the property value, the lower your loan-to-value ratio — and the more competitive the rates available to you. Some schemes, such as the Mortgage Guarantee Scheme, allow eligible buyers to purchase with 5% on certain properties.
- Most lenders will lend between 4 and 4.5 times your annual income, though some lenders will go higher for certain applicants — particularly those in professional roles or with strong affordability profiles. The exact figure depends on your income type, outgoings, credit history, deposit and the property you're buying. Our Mortgage Passport gives you an indicative position before you apply.
- A mortgage in principle (also called an Agreement in Principle or Decision in Principle) is a conditional indication from a lender that they would be prepared to lend you a specified amount, subject to a full application and valuation. It is not a formal offer, but it is useful when making an offer on a property as it shows the seller you have lending in place. Most estate agents will ask to see one before accepting an offer.
- First-time buyers in England and Northern Ireland pay no stamp duty on the first £425,000 of a property's purchase price, and 5% on the portion between £425,001 and £625,000. Properties over £625,000 do not qualify for first-time buyer relief and standard rates apply. Rates and thresholds differ in Scotland (Land and Buildings Transaction Tax) and Wales (Land Transaction Tax). Our stamp duty calculator shows the current liability for your property value.
- From starting your Mortgage Passport to receiving a formal mortgage offer typically takes two to six weeks, depending on the lender and the complexity of your application. The full process from offer accepted to completion usually takes eight to twelve weeks, though this varies based on the conveyancing chain. Starting your mortgage application as early as possible — ideally before you find a property — avoids delays at the point of offer.
- Yes, though new build properties have their own assessment criteria. Some lenders apply tighter loan-to-value limits on new builds, particularly on flats, and there may be restrictions on the incentives a developer can offer alongside a purchase. Not all lenders operate in the new build market. Lockhart Murphy has access to lenders experienced in new build lending across houses and flats.
How much deposit do I need to buy my first home?
How much can I borrow as a first-time buyer?
What is a mortgage in principle?
Do first-time buyers pay stamp duty?
How long does the mortgage application process take?
Can I get a mortgage on a new build property?
Reviewed by Jack Cousins · CeMAP qualified
21 August 2026
Your home or property may be repossessed if you do not keep up repayments on your mortgage or other loans secured upon it.