How First Time Buyer Mortgages Work
A first time buyer mortgage allows you to borrow money to purchase your first property, typically with a deposit of between 5% and 10% of the property value.
A first time buyer mortgage allows you to borrow money to purchase your first property, typically with a deposit of between 5% and 10% of the property value.
Lenders assess your application based on:
- Your income and employment status
- Your monthly outgoings and commitments
- Your credit history
- The size of your deposit
The more you can put down as a deposit, the better your mortgage options and interest rates are likely to be.
As a First Time Buyer How much Can I Borrow?
AMost lenders will offer between 4 and 4.5 times your annual income, although this can vary depending on your financial situation.For example:- If you earn £30,000 per year, you may be able to borrow £120,000–£135,000
- YWith a 5% deposit, this could allow you to buy a property worth around £125,000–£140,000
Step-by-Step: The First Time Buyer Journey
1
Work Out Your Budget
Before you start viewing properties, it’s important to understand how much you can afford. This includes your deposit, monthly repayments and additional costs such as legal fees and stamp duty.
2
Get a Mortgage Agreement in Principle
An Agreement in Principle (AIP) gives you an idea of how much a lender may be willing to offer. It also shows estate agents that you’re a serious buyer.
3
Find Your Perfect Home
Once you know your budget, you can begin your property search with confidence.
4
Submit Your Mortgage Application
After your offer is accepted, we’ll help you submit your full mortgage application and handle the paperwork with the lender.
5
Mortgage Offer and Legal Work
Once approved, your solicitor will carry out legal checks and searches before contracts are exchanged.
6
Completion and Moving In
Once everything is finalised, funds are released and you get the keys to your new home.
Step 1
- Browsing dream homes is fun. But before you start booking viewings, you should know what you can afford. We’ll assess your income, outgoings and deposit. This gives you a clear, realistic budget. Most lenders ask for a deposit of at least 5 percent. However, you may have more options than you think. Some lenders we work with accept gifted deposits or equity from a family home. If you’ve rented and paid on time, you may not need a deposit at all. Once we confirm your budget, we help you get a Decision in Principle. Some call it a Mortgage in Principle. This confirms how much a lender might offer you. You usually need one before an estate agent accepts your offer. So, it plays a vital role when applying for first time buyer mortgages.
Step 2
- Now comes the exciting part. Once you find your ideal home, we search the market for your perfect mortgage. We work independently, so we offer impartial advice on first time buyer mortgages. We explore your goals, both now and in the future. We explain everything clearly and avoid jargon. When you’re ready, we submit your application and take care of the paperwork. We also speak with estate agents and solicitors on your behalf. We understand first time buyer mortgages inside out. So, we help you avoid delays and make the process smoother from start to finish.
Step 3
- Your mortgage is approved and you’re ready to move. Now you can pack, plan your move and get excited. Nothing beats the feeling of stepping into your very own home.
Insurance and Protection for First Time Buyer Mortgages
Good to Know
We don’t just arrange first time buyer mortgages. We also offer advice on insurance that protects your new home. This includes buildings insurance and life insurance. Just like our mortgage advice, we tailor everything to your needs. You can count on us to keep things simple, clear and right for you.
First Time Buyer Mortgage Advice – Local Offices
While our first time buyer mortgage advice is available nationwide, many clients prefer to work with a local adviser.
If you’d like to speak to a first time buyer mortgage broker near you, choose your local Mortgage Force office below.
First Time Buyer Mortgage Broker in Cambridge
First Time Buyer Mortgage Broker in Derby
First Time Buyer Mortgage Broker in London
First Time Buyer Mortgage Broker in Edinburgh
You can also explore our latest articles in our First Time Buyer mortgage guides section.
Some commonly asked questions about mortgages, stamp duty and buying a property for first time buyers.
Yes, as a first-time buyer, you may be able to get a mortgage with just a 5% deposit. This means you only need to save 5% of the property price, which can make getting on the property ladder more affordable. There are also government-backed schemes and special deals from some lenders designed to help first-time buyers with smaller deposits, or even no deposit!
These low-deposit mortgages are becoming more common, but it’s important to make sure the monthly payments are still affordable for you. We can guide you through your options and help you find the best deal for your budget.
Your credit score plays a big role when you apply for a mortgage. It helps lenders see how you’ve managed money in the past — like if you’ve paid bills or loans on time. A higher score usually means you’re seen as more reliable, which can make it easier to get approved for a mortgage or access better deals.
If your score is lower, it doesn’t mean you can’t get a mortgage, but you might have fewer options. That’s why it’s a good idea to check your credit score early and if possible to work on improving it before you apply. We can help you understand your score and what steps to take.
Yes, many first-time buyers use a gifted deposit to buy their first home. A "gifted deposit" can mean the following things:-
- A parent, grandparent, or another family member gives you money to put towards your deposit — and they don’t expect you to pay it back.
- A family member or even your Landlord has agreed to sell you their property at a discounted price, so they are essentially gifting you some of the equity in the property to be used as a deposit.
Buying your first home involves more than just a deposit. You should also budget for: <ul
Yes, many lenders accept gifted deposits, usually from close family members such as parents or grandparents. The money must be a genuine gift, not a loan, and the person providing it will normally need to sign a declaration confirming they have no financial interest in the property. Gifted deposits are a common way for first-time buyers to increase their deposit and access better mortgage deals.
An Agreement in Principle (AIP), sometimes called a Decision in Principle, is an indication from a lender of how much they may be willing to lend you based on an initial assessment of your income, credit history and financial situation. It’s not a formal mortgage offer, but it shows estate agents and sellers that you’re a serious buyer and can strengthen your position when making an offer.
Choosing the right mortgage can be confusing, especially with so many lenders and products available. As independent mortgage brokers, we: <ul
The mortgage process typically takes between 4 to 8 weeks from application to offer, although this can vary depending on the lender, your circumstances and the complexity of the purchase. Factors such as property surveys, legal work and document checks can also affect timelines. Getting advice early and having your paperwork ready can help speed things up.
See all our first time buyer mortgage FAQs
Some kind words from our clients
Rachel has been incredible in securing us a mortgage and I cannot recommend her highly enough. The whole process was clear from beginning to end and Rachel kept us up to date every step of the way. We had a tricky property to mortgage and Rachel was able to secure us a good product from a high street lender. I have recommended her to friends and family and would use her again for any future mortgages. Thanks Rachel!
A 5 star experience of first time buying thanks to Rachel and Joanne. I was worried buying a home would come with so much stress but I can honestly say it’s been more or less stress free! Quick and professional communication and even got a better mortgage deal than I thought! Can’t recommend or thank them enough!
Rachel and Jo at Mortgage Force were outstanding start to finish. They went above and beyond with everything they did, helping us to purchase our first home. We've been told many times how stressful buying a house is but with Mortgage Force it felt like a breeze! Rachel was informative and broke everything down so that we fully understood all of the house buying lingo and both Jo and Rachel were friendly, helpful, super quick to respond to any queries and just a pleasure to deal with.