First Time Buyers Guide: How to Get on the Property Ladder in the UK
Buying your first home is exciting, but it can also feel overwhelming. From navigating mortgages to understanding the costs involved, there’s a lot to learn. This detailed guide is designed specifically for UK first-time buyers—walking you through the process from start to finish, including the best ways to prepare, finance options available, and what to expect at each step.
What Is a First-Time Buyer in the UK?
In the UK, you’re considered a first-time buyer if you have never owned a residential property in the UK or abroad. This status can make you eligible for:
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Stamp Duty relief
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Special mortgage products
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Government schemes like Help to Buy and Shared Ownership
Even if you inherited a home or owned one jointly in the past, you may no longer qualify as a first-time buyer.
How Much Deposit Do First-Time Buyers Need?
The typical deposit required is at least 5% of the property’s value, though a 10% deposit is more common for better mortgage rates.
| Property Price | 5% Deposit | 10% Deposit |
|---|---|---|
| £180,000 | £9,000 | £18,000 |
| £250,000 | £12,500 | £25,000 |
| £320,000 | £16,000 | £32,000 |
The bigger your deposit, the lower your Loan-to-Value (LTV) ratio—which means more attractive mortgage rates and greater borrowing power.
First-Time Buyer Mortgages: What Are Your Options?
There are several types of mortgages available to first-time buyers in the UK. Some lenders offer exclusive deals with lower fees, cashback, or flexible terms.
Common Types of Mortgages:
| Mortgage Type | Description |
|---|---|
| Fixed-Rate | Your interest rate stays the same for 2–5 years, making budgeting easier. |
| Tracker | Follows the Bank of England base rate, so payments may rise or fall. |
| Discounted Variable | Lower than the lender’s SVR, but can change at any time. |
| Guarantor/Family Mortgages | Let a parent or relative support your application. |
UK Bank Examples:
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Barclays Family Springboard Mortgage allows parents to support without giving a cash gift.
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Halifax First-Time Buyer Mortgages include cashback on completion.
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Nationwide offers first-time buyer deals with no product fee and free valuations.
Do First-Time Buyers Pay Stamp Duty?
As a first-time buyer, you benefit from Stamp Duty relief on properties up to £425,000. Here’s how it works in England and Northern Ireland:
| Property Price | Stamp Duty You Pay |
|---|---|
| Up to £425,000 | £0 |
| £425,001 to £625,000 | 5% on amount above £425,000 |
| Over £625,000 | Standard rates apply (no relief) |
Example:
If you’re buying a £475,000 property, you’ll only pay 5% on the £50,000 above the £425,000 threshold—totalling £2,500.
For latest rates and tools, visit the official HMRC Stamp Duty Calculator.
What Government Schemes Can Help First-Time Buyers?
Several UK government-backed schemes are designed to make home ownership more accessible.
1. Lifetime ISA (LISA)
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Save up to £4,000 per year
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Government adds 25% bonus (up to £1,000 per year)
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Can only be used for first home or retirement
2. Shared Ownership
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Buy 25%–75% of a property and pay rent on the rest
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You can increase your share over time (staircasing)
3. First Homes Scheme
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New build homes sold at a 30–50% discount
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Only available to local first-time buyers and key workers
4. Mortgage Guarantee Scheme
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Allows lenders to offer 95% mortgages
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Available through major banks like NatWest, Lloyds and Virgin Money
Step-by-Step Guide to Buying Your First Home
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Check your credit report
Use agencies like Experian, Equifax, or TransUnion. -
Set your budget and calculate affordability
Lenders usually offer up to 4.5x your income. -
Save for a deposit
Use a LISA or high-interest savings account. -
Get a mortgage in principle
Gives you a realistic idea of how much you can borrow. -
Start viewing properties
Consider location, schools, transport, and future value. -
Make an offer and instruct a solicitor
Once accepted, the legal process begins. -
Apply for your mortgage
Submit full documentation, including proof of income. -
Survey and valuation
Your lender will assess the property’s value. -
Exchange contracts
You pay your deposit and set a completion date. -
Complete and move in
The property is now legally yours.
Additional Costs First-Time Buyers Should Expect
Buying a home involves more than just a deposit. Be prepared for these extra expenses:
| Cost Type | Estimated Cost |
|---|---|
| Valuation Fee | £0 – £500 (often free with lenders) |
| Survey (Homebuyer’s) | £400 – £800 |
| Solicitor Fees | £800 – £1,500 |
| Mortgage Arrangement Fee | £0 – £1,000 |
| Moving Costs | £300 – £1,000+ |
| Buildings Insurance | £150 – £350/year |
Always factor in 5–10% of the property price for total buying costs.
How to Boost Your Mortgage Approval Chances
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Improve your credit score – Register to vote, clear debts, avoid missed payments
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Reduce monthly outgoings – Cancel unnecessary subscriptions and cut down on spending
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Avoid new credit applications – Especially 6 months before applying
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Stay in stable employment – Most lenders require 3–6 months of payslips
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Use a mortgage broker – Especially if you’re self-employed or have complex finances
Should You Use a Mortgage Broker?
For first-time buyers, a mortgage broker can be extremely helpful. They:
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Access exclusive lender deals
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Help prepare your paperwork
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Explain complex terms and processes
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Handle lender communication
Some brokers charge a fee (e.g. £300–£500), but many are paid commission by lenders and are free to use.
Final Thoughts: Preparation Is Everything for First-Time Buyers
Buying your first home in the UK doesn’t need to be confusing. With proper preparation, understanding of your options, and support from professionals, you can confidently take your first step onto the property ladder.
Start by reviewing your finances, getting a mortgage in principle, and learning about your local housing market. From there, the journey becomes a lot more manageable.
To compare the best mortgages for first-time buyers, visit the MoneyHelper mortgage comparison tool.