| Minimum deposit | Usually 5%, with some lenders |
|---|---|
| Typical income multiple | Around 4–4.5x; some go higher |
| Stamp duty relief (England) | None on first £300,000, if price ≤ £500,000 |
| Common terms | 25–35 years; up to 40 with some lenders |
| Joint applications | Yes, including friends or family |
| Regulation | FCA-regulated residential mortgage |
Who is this for?
- Buyers who have never owned a home in the UK or abroad
- Renters with a 5–15% deposit saved or gifted
- Young professionals in London looking at flats or new builds
- Couples or friends buying together
- Buyers using family support, such as gifted deposits
How much deposit does a first-time buyer need?
Most lenders need at least 5% of the purchase price. A 10% or larger deposit usually opens up more lenders and lower rates. Some new-build properties need a larger deposit.
The government-backed mortgage guarantee scheme, now known as Freedom to Buy, supports lenders offering 95% mortgages. Not every lender takes part, and criteria vary.
A larger deposit is not the only route. Some lenders offer family-assisted mortgages, where a relative's savings or property is used as extra security for a period. These can help, but the family member's money or home may be at risk if you fall behind on payments.
How much can I borrow as a first-time buyer?
Most lenders cap borrowing at around 4 to 4.5 times income. Some offer up to 5 or 5.5 times for higher earners or certain professions, subject to affordability. Regulators have recently given lenders more flexibility on higher income multiples, but each lender sets its own limits.
Lenders also look at your outgoings, debts and credit history. Try our borrowing calculator or read how much can I borrow?
Do first-time buyers pay stamp duty?
In England and Northern Ireland, first-time buyers pay no stamp duty on the first £300,000 and 5% on the portion from £300,001 to £500,000. If the price is over £500,000, the relief does not apply and standard rates are charged on the whole price.
To qualify, every buyer must be a first-time buyer, including joint buyers. Scotland and Wales have their own taxes and rules. See our stamp duty guide.
What schemes can help first-time buyers?
- Freedom to Buy: government-backed 95% mortgages through participating lenders.
- Lifetime ISA: a 25% government bonus on savings, up to £1,000 a year, for homes up to £450,000. The government has consulted on replacing it with a new first-time buyer ISA, so check the latest rules.
- Shared ownership: buy a share of a home and pay rent on the rest. See our shared ownership page.
- Family support: gifted deposits, or joint borrower sole proprietor mortgages where a relative helps with affordability.
Each option has rules and trade-offs. We help you weigh them up.
How can I improve my chances of approval?
Lenders want to see steady income, manageable debts and a clean credit history. Small steps in the months before you apply can help.
- Register on the electoral roll at your current address
- Check your credit file for errors
- Avoid new credit applications before applying
- Keep your bank statements tidy, with no unexplained transfers
- Gather payslips, P60 and proof of deposit early (see our documents checklist)
What happens between offer and completion?
Once your offer is accepted, your solicitor carries out searches and raises enquiries with the seller. Meanwhile, the lender values the property and issues a formal mortgage offer. When both sides are ready, you exchange contracts and pay your deposit, usually 10% of the price, or less by agreement.
From exchange you are legally committed, so you should arrange buildings insurance from that date. On completion day, the lender releases the mortgage funds, your solicitor pays the seller and you collect the keys. Keep your finances stable throughout: avoid new credit, changing jobs or large unexplained spending until you complete, as lenders can recheck before releasing funds.
How does OMB help first-time buyers?
Buying your first home involves many unfamiliar steps. We explain each one in plain English and arrange a mortgage in principle before you view. We then compare lenders, submit your application and keep in touch with your solicitor and agent through to completion. We can also talk you through life insurance and other protection, so your new home is safeguarded.
Run the numbersLoan, LTV, monthly payment, stamp duty and cash needed for a new home.
Home purchase calculatorHow we arrange it
- Free 15-minute call about your budget and plans
- Mortgage in principle so you can make offers
- Lender comparison and recommendation
- Application, valuation and mortgage offer
- Support through exchange and completion
Example cases
Illustrative examples based on the type of case we arrange. Not specific clients; every case is different.
£427,500 first-home purchase in Hackney with a 5% deposit
£216,000 first-time purchase in Birmingham with a gifted deposit from parents
£380,000 first purchase in Croydon for a newly qualified solicitor
From the blogFirst-time buyer costs: what you need beyond your deposit
Read the articleFrequently asked questions
Can I get a mortgage with a 5% deposit?
Yes, several lenders offer 95% mortgages, including under the government-backed Freedom to Buy scheme. Criteria are stricter at 95%, with tighter affordability and credit checks. Some lenders restrict new-build flats at this level. A larger deposit usually means more choice and lower monthly payments.
Who counts as a first-time buyer?
For stamp duty relief, you must never have owned a residential property, or a share of one, anywhere in the world. This includes inherited property. Lenders may use slightly different definitions for their products. If buying jointly, every buyer must be a first-time buyer for the stamp duty relief to apply.
Can my parents gift me a deposit?
Yes, most lenders accept gifted deposits from family. The person giving the money usually signs a gift letter confirming it is not a loan and that they will have no interest in the property. Lenders also check where the money came from, so they may ask for the donor's bank statements.
What is a joint borrower sole proprietor mortgage?
It lets a family member, often a parent, join the mortgage to boost affordability without being named on the property's title. You own the home, but both of you are responsible for repayments. It can avoid stamp duty surcharges for the parent, but they take on real financial liability.
Can I get a first-time buyer mortgage on a low income?
It depends on the price and your outgoings. Options include buying with someone else, shared ownership or a family-supported mortgage. Some lenders count additional income, such as certain benefits or regular overtime. We look for lenders whose criteria fit your situation.
How long does it take to buy your first home?
Timescales vary widely depending on the chain, the property and legal work. A first-time buyer has no property to sell, which can help. The mortgage itself is usually not the slowest part if your documents are ready. Your solicitor's searches and enquiries often take the most time.
Should I choose a two-year or five-year fix?
A two-year fix offers flexibility if you expect to move or your income to change. A five-year fix gives longer certainty on payments. Fees and early repayment charges differ. We look at your plans and the total cost over each period, not just the headline rate.
Can I buy a new-build home as a first-time buyer?
Yes. Some lenders limit maximum LTV on new builds, particularly flats, and offers must usually last until the property completes. Developer incentives may be deducted from the valuation. We check lender rules on new builds before you reserve. Freedom to Buy can apply to new builds.
Do I need life insurance to get a mortgage?
It is not usually a condition of a residential mortgage. However, life insurance can repay the mortgage if you die, protecting anyone who shares your home. Cover depends on underwriting and policy terms. We can talk you through life, critical illness and income protection options.
Does using a broker cost first-time buyers more?
A broker fee may apply, typically around £500 and up to 1% of the loan. We may also receive commission from the lender. We confirm any fee before you proceed. A broker can access lenders and criteria that are hard to compare on your own.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice: up to 1% of the loan, typically £500.