First Time Buyer Mortgage

What are the typical requirements to apply for a mortgage as a first-time buyer?

One of the main requirements when you buy your first home is to provide proof of your income. If you’re employed, that would normally be via the latest three months’ payslips.
If you’re self-employed, we’d be looking for tax returns.

Your income will determine how much you can borrow. We’d also want information about any debts and credit commitments, which could be a personal loan, a student loan or car finance.

They’re the main things we need to know to assess your borrowing capacity. You also need a valid form of ID, as sometimes lenders require that.

We’ll also need to know about your deposit. Is it from savings, a gift or inheritance? That could influence our advice around specific lenders and mortgage products.

What’s the maximum amount that can be borrowed on a first-time buyer mortgage? What’s the minimum deposit for a first-time buyer?

When we look at how much a first-time buyer can borrow, we gather all the information on income and expenditure. We need to know how old you are, as well, and whether you have any children or dependents. This all contributes to your borrowing amount.

The minimum deposit would normally be 5%. However, there are certain schemes out there, such as one for renters, where you can potentially get a 100% mortgage.

With affordability, we always assess your information to confirm how much you can borrow. Your deposit also influences your purchase budget. Then, when you’re looking at properties on Rightmove or Zoopla, you can make sure they are within budget – and not end up disheartened further down the line.

What are the types of interest rates available on a mortgage for a first-time buyer?

First-time buyers can access most products available, similar to current homeowners. A product will always be determined based on the size of your deposit. With a 5% deposit, the interest rate would normally be higher than with a 10% or 15% deposit. The less deposit a first-time buyer has, the higher the interest rate.

Most first-time buyers prefer stability, so we normally recommend a fixed rate. This is where your interest rate remains the same for a set period of time. This can be two, three, five or even 10 years.

There are other types of mortgage products available, such as variable rates – typically tracker mortgages. With a tracker mortgage, the interest rate follows the Bank of England base rate.

Another variable product is a discount rate, which is linked to a lender’s ‘standard variable rate’. These types of products come with less stability. When someone’s buying the first time, they usually want to know what they’re paying every month – in which case a fixed rate is often best.

What are the pros and cons of fixed versus variable interest rate mortgages for first-time buyers?

The main advantage of a fixed-rate mortgage is that it provides stability. If you’re buying your first home and you know exactly how much you want to pay every month, a fixed rate is the right product for you. You’re less exposed to interest rate rises.

There can be a downside, especially if you’re looking long-term. If the Bank of England base rate is reduced, you won’t benefit. Your fixed rate will still remain the same. But you’re not stuck on that interest rate forever. It’s fixed for that period of time – two, three, five or 10 years.

You can leave this kind of product early, but there is often an early repayment charge if you decide to switch, perhaps to get a better interest rate.

With variable and tracker products, there is always an element of risk around interest rate fluctuations. These could cause your monthly payments to increase – but they could also decrease. You just won’t have the stability a fixed rate offers.

Variable rates can also be higher compared to fixed rates, so you could pay slightly more per month. However, the upside is that if the Bank of England base rate decreases, you’re automatically going to get a decrease in your monthly payment.

What government schemes are available to help first-time buyers?

At the time of recording this in October 2025, there aren’t a huge number of government schemes available. One of the best known schemes was Help to Buy, which has now ended.

One of the main schemes now is Shared Ownership. This is where you buy a certain percentage of a property – normally over 25% of the full property value. On the share you don’t own, you will pay rent.

As an example, you might have a property worth £300,000 and you are purchasing a 25% share – then you would own £75,000 of that property. You pay rent on the remaining share.

The scheme really benefits first-time buyers who have a low deposit – because the deposit is based on the share you’re buying. In my example, you would just need 5% of the £75,000, which is just below £4,000.

Some first-time buyers who are renting and can’t save a lot of money find this can really work for them.

Aside from government schemes, we’re seeing more and more lenders widening their lending criteria for first-time buyers, to allow them to borrow more money. First-time buyers that meet certain criteria can potentially get onto the property ladder with a 5% deposit where historically, they needed 10% or 15%.

What documents do I need to get pre-approved for a mortgage as a first-time buyer?

Being pre-approved for a mortgage is essentially getting an Agreement in Principle, also known as an AIP or a Mortgage in Principle. They’re all the same thing.

There will always be some form of credit search – either leaving a soft or a hard footprint in your credit file. If you’re using a mortgage broker, we will explain that to you and get your approval to do that.

There aren’t any specific documents we need. However, we will always complete a fact-find to gather all the information we need in our initial call with clients.

Bear in mind that you will need to back up what you tell us about your income. If you’re employed, that could be via your latest three months’ payslips. If you’re self-employed, you could provide your last two years’ tax returns.

We also advise first-time buyers to have a copy of their credit report. Then we’ll have access to the full picture and there will be no surprises when a credit check is done.