Getting Started as a First-Time Buyer
Taking your first step onto the property ladder is an exciting milestone. As a first-time buyer, you have access to exclusive benefits and schemes designed to make homeownership more affordable. From stamp duty relief to government-backed schemes, there are numerous ways to reduce the costs of buying your first home.
Our expert mortgage advisors understand the unique challenges first-time buyers face. We will guide you through every step, from understanding how much you can borrow to finding the best mortgage deals from over 90 lenders. With our fee-free service, you get professional support without any additional costs.
We have created a comprehensive guide specifically for first-time buyers that covers everything from mortgage options to government schemes, helping you navigate each step of your home buying journey with confidence.
Understanding Deposit Requirements
One of the biggest hurdles for first-time buyers is saving for a deposit. Typically, you will need at least 5% of the property value, though having 10% or more opens up better mortgage rates and more lender options. For a £250,000 property, this means saving between £12,500 and £25,000.
The good news is that there are several ways to boost your deposit. The Lifetime ISA allows you to save up to £4,000 per year with a 25% government bonus, while some lenders offer family-assisted mortgages where parents can help without giving cash directly. Our detailed guides cover these options extensively, including how the Bank of Family is helping first-time buyers get on the property ladder.
Government Help to Buy Schemes
The UK government offers several schemes to help first-time buyers get on the property ladder. The Shared Ownership scheme lets you buy a share of a property (between 10% and 75%) and pay rent on the rest, making it easier to afford your first home with a smaller deposit and mortgage.
- First Homes Scheme - New homes at 30-50% discount for local first-time buyers
- Shared Ownership - Buy a share and pay rent on the rest
- Lifetime ISA - Save with a 25% government bonus
- Help to Build - For those wanting to build their own home
First-Time Buyer Stamp Duty Relief
As a first-time buyer, you benefit from significant stamp duty savings. You pay no stamp duty on properties up to £425,000, and reduced rates up to £625,000. This can save you thousands of pounds compared to other buyers, making a real difference to your moving costs.
For example, on a £400,000 property, a first-time buyer pays no stamp duty at all, while other buyers would pay £10,000. Even on a £500,000 property, you would save £6,250 compared to standard rates. These savings can be put towards your deposit, moving costs, or home improvements.
Choosing the Right Mortgage Type
Most first-time buyers choose fixed-rate mortgages for the security of knowing exactly what they will pay each month. A 2 or 5-year fixed rate protects you from interest rate rises while you settle into homeownership. This predictability makes budgeting easier during your first years as a homeowner.
However, tracker or variable rate mortgages might offer lower initial rates. Some first-time buyer specific products include cashback mortgages that give you money upfront for furniture or renovations, and offset mortgages that link to your savings. Our advisors will explain all options and help you choose what works best for your circumstances.
Your Next Steps
Ready to take the next step? Start by getting a mortgage agreement in principle. This shows estate agents and sellers you are a serious buyer and gives you a clear budget for your property search. The process is quick and does not affect your credit score.
- Get a free mortgage consultation to understand your options
- Receive your agreement in principle within 24 hours
- Access exclusive first-time buyer mortgage deals
- Get ongoing support through to completion
Our fee-free service means you get expert advice without any broker charges. We are paid by the lender when your mortgage completes, so our support costs you nothing. Start your journey today and let us help make your dream of homeownership a reality.
