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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 mortgage partner's expert advisers understand the unique challenges first-time buyers face. They will guide you through every step, from understanding how much you can borrow to finding the best mortgage deals from over 90 lenders. With a free initial consultation, you get professional support from the outset.
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.
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.
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.
As a first-time buyer, you benefit from significant stamp duty savings. In England and Northern Ireland you pay no stamp duty on the first £300,000, and 5% on the part from £300,001 to £500,000. Above £500,000 the relief does not apply. 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 £5,000, while someone moving home pays £10,000. On a £500,000 property the first-time buyer pays £10,000 against £15,000, a saving of £5,000. These savings can be put towards your deposit, moving costs, or home improvements.
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 mortgage partner's advisers will explain all options and help you choose what works best for your circumstances.
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.
Your initial consultation is free and no-obligation, so you can talk your options through with a specialist before committing to anything. Your adviser will confirm any fees that apply before you proceed. Start your journey today and let us help make your dream of homeownership a reality.
