Buying your first home is exciting, but the mortgage process can feel confusing. This simple guide explains how a first-time buyer mortgage works in the UK, what lenders usually look at, the steps from start to finish, and the Stamp Duty relief for first-time buyers. Stamp Duty figures were checked on GOV.UK on 13 October 2026.
What is a first-time buyer mortgage?
A mortgage is a loan to buy a property. The home is used as security for the loan. A “first-time buyer mortgage” is not a special legal product. It simply means a mortgage for someone who is buying their first home. Many lenders have products and criteria aimed at first-time buyers, so it helps to know what to expect before you start.
How much deposit do you need?
The deposit is the part of the price you pay yourself. The mortgage covers the rest. In general:
- a bigger deposit usually means more mortgage choices, because the lender is taking less risk;
- a smaller deposit can still be possible, but there may be fewer options and stricter checks.
Lenders will also want to know where your deposit comes from. If a family member is giving you money, the lender will usually ask for a signed letter confirming it is a gift and not a loan.
What do lenders look at?
Every lender has its own rules, but most will check:
- Your income: payslips, or accounts and tax records if you are self-employed.
- Your outgoings: bills, loans, credit cards, childcare and other regular costs.
- Your credit history: how you have managed credit in the past.
- Affordability: whether you could still pay if interest rates went up.
- Your identity and address: passport or other ID and proof of address.
Step-by-step: from saving to moving in
- Check your budget. Work out what you can afford each month, including bills, insurance and maintenance, not just the mortgage.
- Check your credit report. Fix any mistakes and make sure you are on the electoral roll at your address.
- Get an Agreement in Principle. This is a statement from a lender showing roughly how much it may lend. It is not a final offer, but it shows estate agents you are serious.
- Find a property and make an offer.
- Make a full mortgage application. The lender will check your documents and arrange a valuation of the property.
- Receive your mortgage offer. Read it carefully, including any fees and early repayment charges.
- Conveyancing. A solicitor or licensed conveyancer does the legal work, searches and contracts.
- Exchange and completion. Contracts are exchanged, then on completion day the money is sent and you get the keys.
Stamp Duty relief for first-time buyers
If you buy a home in England or Northern Ireland, you may have to pay Stamp Duty Land Tax (SDLT). First-time buyers can claim relief. GOV.UK says (checked 13 October 2026):
- you pay no SDLT on the first £300,000 of the price;
- you pay 5% on the part from £300,001 to £500,000;
- if the price is over £500,000, you cannot claim first-time buyer relief, and normal rates apply.
You can only claim if you and everyone you are buying with are first-time buyers. Scotland and Wales have their own taxes and rules, so check GOV.UK if you are buying there.
Other costs to plan for
Do not forget the costs on top of the deposit:
- legal (conveyancing) fees;
- survey and valuation costs;
- any lender product or arrangement fees;
- Stamp Duty, if the price is above the relief limits;
- removals, furniture and buildings insurance.
Fixed rate or variable rate?
Most first-time buyers choose between two main types of mortgage:
- Fixed rate: your interest rate stays the same for a set period, so your monthly payment is predictable during that time.
- Variable rate (for example a tracker): your rate can go up or down, so your monthly payment can change.
When a fixed or introductory period ends, you usually move to the lender’s standard variable rate unless you remortgage or choose a new deal. Plan ahead for that date.
Tips for first-time buyers
- Get your paperwork ready early: ID, 3 months of payslips and bank statements, and proof of deposit.
- Avoid new credit just before you apply, such as a new car loan or phone contract.
- Think about the term. A longer term can lower monthly payments but usually means you pay more interest overall.
- Compare more than the rate. Fees, early repayment charges and flexibility all matter.
- Ask questions. Make sure you understand the offer before you sign.
How David Parley can help
David Parley, based at 225 Cranbrook Road, Ilford, helps people with mortgage questions, including first-time buyers. Find out more on our residential mortgages page.
FAQ
Do I pay Stamp Duty as a first-time buyer?
In England and Northern Ireland, first-time buyers pay no SDLT on the first £300,000 and 5% on the part from £300,001 to £500,000. Above £500,000 the relief does not apply (GOV.UK, checked 13 October 2026).
What is an Agreement in Principle?
A statement from a lender showing roughly how much it may lend you. It is not a guaranteed offer.
Can a family member help with my deposit?
Often yes, as a gift. The lender will usually ask for a gift letter confirming the money does not need to be paid back.
How long does buying a home take?
It varies a lot. The mortgage application, the legal work and the chain of buyers and sellers can all affect timing.
Your home may be repossessed if you do not keep up repayments on your mortgage.
This article is general information, not legal, immigration or financial advice. Rules and fees can change – always check GOV.UK.
Need help? Call David Parley on 020 7050 0712 or email info@davidparley.co.uk.
