Everything you need to know when buying your first home
Thinking of buying your first home? This guide answers your most pressing first-time buyer mortgage questions — from how much deposit you’ll need to what documents to prepare, how to navigate low credit scores, and what government schemes are available. Learn about hidden costs, borrowing limits, and how the mortgage process actually works. Start your home-buying journey with confidence.
Buying your first home is a big step — and if you’re new to the property ladder, it can be hard to know where to begin. As mortgage brokers for first-time buyers, we answer some of the most common first-time buyer mortgage questions with clear, expert-backed advice to help you move forward with confidence.
1. How does a mortgage work for first-time buyers?
A mortgage is a loan to help you purchase a home. You’ll pay back the loan (plus interest) in monthly repayments over a mortgage term of up to 40 years. Your lender will assess your affordability using your income, credit score, and the size of your deposit.
There are various mortgage options available, which you should discuss with a mortgage broker. At Greenacre Financial Services we offer independent, whole of market mortgage advice with access to over 100 lenders throughout the UK.
Market Insight: With energy efficiency becoming a key factor for both buyers and lenders, sustainable mortgages are growing in popularity. These products reward you for choosing greener homes with better rates or exclusive offers. Learn more about Greenacre’s sustainable mortgage options.
2. How much can I borrow as a first-time buyer?
Each lender will have their own affordability model but some lenders may allow up to 5 or 6 times for your mortgage, or go higher depending on your financial situation and credit profile. Factors include:
- Income (solo or joint)
- Existing debts or commitments
- The property’s value and condition
- deposit size
Top Tip: Find out what trends are shaping the first-time buyer housing landscape.
3. How much deposit do you need as a first-time buyer in the UK?
The minimum deposit is typically 5% of the asking price, but many lenders offer better mortgage rates to buyers who can provide 10% or more. The more you can save upfront, the lower your loan to value (LTV) — which improves affordability and reduces your monthly repayments. No deposit mortgages, also known as a 100% LTV (loan-to-value) mortgage, are available from a small number of lenders. There are also other schemes where only a £5k deposit is required up to a £500k purchase price
Top Tip: Some first-time buyer schemes let you buy with just 5% upfront. Find out what is driving the increase in first-time buyers.
4. What documents do I need for a mortgage as a first-time buyer?
Lenders will ask for:
- Proof of ID (passport or driver’s licence)
- Recent bank statements (usually 3–6 months)
- Payslips (or proof of income if self-employed)
- Your address history
- proof of your deposit
Top Tip: Having these ready early speeds up the mortgage application process.
5. Can I get a mortgage if I have a low credit score?
Yes — but it may limit your mortgage options. Specialist mortgage providers can offer products designed for buyers with lower credit, though interest rates may be higher.
Top Tip: Improving your credit score ahead of time can widen your choices and reduce costs.
6. What government help is available for first-time buyers?
Here’s what’s currently available:
- First Homes Scheme – Up to 30–50% off the market price for eligible buyers.
- Mortgage Guarantee Scheme – Helps you get a mortgage with just a 5% deposit.
- Shared Ownership – Buy a portion of a property and pay rent on the rest.
- Lifetime ISAs – Save up to £4,000/year, with a 25% government bonus
Top Tip: Some schemes prioritise key workers or those with local ties.
7. What are the hidden costs of buying a house?
Many first-time buyers focus on saving for a deposit, but there are several additional costs you’ll need to budget for. These are often called “hidden” costs because they’re not always obvious at first glance. Here’s what to expect beyond the purchase price:
Stamp Duty
A government tax you pay when buying a property over a certain value. First-time buyers may be eligible for stamp duty relief, meaning you pay less or nothing at all — but it depends on the property price and where you live in the UK. Use a stamp duty calculator to estimate your bill.
Survey and Mortgage Valuation Fees
Before approving your mortgage, your lender will want a mortgage valuation to check the home is worth the price. You might also choose to pay for a more detailed survey to spot structural issues before you commit to buying.
Solicitor and Conveyancing Costs
You’ll need a solicitor or licensed conveyancer to handle the legal side of your house purchase. This includes checking contracts, carrying out local searches, and managing the exchange of contracts. Expect to pay anywhere from £1000 to £2000 depending on the complexity.
Buildings Insurance
Most mortgage providers require you to have buildings insurance in place from the moment you exchange contracts. It protects the structure of your new home against events like fire, flooding or storm damage.
Home Insurance and Life Insurance
Alongside buildings insurance, it’s wise to get contents insurance to protect your belongings. Many first-time buyers also consider life insurance or mortgage protection insurance to cover their monthly mortgage repayments in case of illness, job loss, or worse.
Moving Expenses and Furnishing Your Home
From hiring a removal van to buying new furniture and appliances, moving costs can add up quickly. Even smaller things — like curtains or kitchen essentials — should be factored into your budget.
Early Repayment Charges
Some mortgage products include fees if you pay off your mortgage loan early or switch to a new deal before the end of your fixed term. These are known as early repayment charges, and it’s important to understand when they apply.
Estate Agent Fees
While estate agent fees are usually paid by the seller, it’s important to be aware of them — especially if you’re also selling a property as part of your move. If you’re buying through a scheme like Shared Ownership or using a home exchange service, some estate agents may charge admin fees or upfront reservation costs. Always ask what fees apply before you commit.
Why it matters: Knowing these hidden costs in advance means you can plan properly, avoid surprises, and move into your first home with financial confidence.
8. When is a good time to buy a house in the UK?
That depends on your circumstances. The property market remains competitive, especially in commuter towns and energy-efficient developments. While mortgage rates have risen slightly from historic lows, many buyers are locking in fixed rates for peace of mind. If you’re ready with your deposit and your finances are in order, buying now could help you avoid future price rises — but always seek mortgage advice first.
Market insight: Analysts predict steady demand thanks to government support and increased housing supply. However, your personal finances and interest rate forecasts should guide your timing.
9. Can I be a first-time buyer again?
If you haven’t owned a home in the last three years, or never owned property in the UK or abroad, you may still qualify — especially for first-time buyer guide schemes and stamp duty relief.
10. How can I get the Right Mortgage?
Buying your first home is a big decision, but having the right information makes all the difference. This guide to first-time buyer mortgage questions and answers is your starting point — but every situation is different. Whether you’re unsure about your credit score, comparing mortgage products, or exploring the best time buyer scheme, Greenacre is here to help.
Get in touch with Greenacre Financial Services today. We’ll walk you through every step of the buying process, from comparing deals to final exchange contracts — and beyond. Call 0203 3939 222 to speak with a dedicated adviser.
Written By: Sasha Stanworth
Author Bio: Sasha co-founded Greenacre Financial Services in 2018 after over a decade in public sector PR and communications. A fully qualified mortgage advisor, she’s passionate about helping first-time buyers achieve homeownership. Sasha also oversees Greenacre’s daily operations and team, ensuring clients receive consistent, high-quality service.
