Introduction
Buying your first home in the UK is both exciting and overwhelming. With rising house prices, changing mortgage rates, and strict affordability checks, many first-time buyers wonder:
• How much deposit do I need in 2025?
• What first-time buyer mortgage schemes are available?
• How much can I borrow, and what will it cost each month?
This complete UK First-Time Buyer Mortgage Guide explains everything you need to know — from minimum deposits to government help-to-buy schemes, affordability rules, and tips to secure the best deal.
What Is a First-Time Buyer?
A first-time buyer is someone who:
• Has never owned a property in the UK or abroad.
• Is buying their main residence (not an investment property).
In the UK, first-time buyers get special advantages, including Stamp Duty relief and access to government support schemes.
How Much Deposit Do First-Time Buyers Need in 2025?
• Minimum deposit: 5% of the property price.
• Typical deposit: 10–15% is common for better rates.
• Best rates: 25%+ deposit unlocks the lowest mortgage rates.
Example Deposits:
• House price £200,000 → 5% deposit = £10,000
• House price £300,000 → 10% deposit = £30,000
• House price £400,000 → 15% deposit = £60,000
The bigger the deposit, the lower the interest rate and monthly repayments.
How Much Can First-Time Buyers Borrow?
Most UK lenders use income multiples:
• 4x to 4.5x salary is standard.
• Higher earners may get up to 5x–5.5x salary.
Examples:
• £30,000 salary → up to £135,000 mortgage.
• £50,000 salary → up to £225,000 mortgage.
• £70,000 joint income → up to £315,000 mortgage.
Use a mortgage affordability calculator to get tailored estimates.
First-Time Buyer Mortgage Rates 2025
As of September 2025:
• 2-Year Fixed Mortgages: ~3.75%–4.20%
• 5-Year Fixed Mortgages: ~3.89%–4.25%
• Tracker Mortgages: ~4.5%–5.5%
With a small deposit (95% LTV), expect higher rates than average.
First-Time Buyer Mortgage Schemes UK 2025
The government offers several schemes to support first-time buyers:
- Mortgage Guarantee Scheme (95% Mortgages)
• Available until 2025.
• Lets buyers purchase with just 5% deposit.
• Government guarantees part of the loan. - Shared Ownership
• Buy a share (25%–75%) of a property, pay rent on the rest.
• You can increase your share later (“staircasing”). - Lifetime ISA (LISA)
• Save up to £4,000 per year.
• Government adds 25% bonus (max £1,000 per year).
• Can use towards first home deposit. - First Homes Scheme
• Discounted homes (30–50% off market price).
• Available to local first-time buyers and key workers. - Help to Buy (ended in 2023 but alternatives exist)
• Although closed, many builders now offer developer-backed 5% deposit schemes.
Monthly Repayment Examples (First-Time Buyer)
25-year mortgage term, £200,000 loan:
Interest Rate Monthly Repayment
3.5% £1,001
4% £1,055
5% £1,169
Even a 1% change in rates makes a big difference.
Costs First-Time Buyers Must Budget For
1. Deposit – 5–25% of purchase price.
2. Stamp Duty – First-time buyers pay 0% up to £425,000.
3. Solicitor Fees – £1,000–£2,000.
4. Valuation Fees – £200–£600.
5. Survey Costs – £300–£1,000 (depending on detail).
6. Mortgage Fees – Arrangement fees (£999+), booking fees.
7. Moving Costs – Removals, furniture, etc.
Tips to Secure a First-Time Buyer Mortgage
1. Save a bigger deposit – 10–15% gives better rates.
2. Improve your credit score – pay debts, avoid missed payments.
3. Get an Agreement in Principle (AIP) – shows estate agents you’re serious.
4. Use a mortgage broker – access exclusive deals.
5. Fix your rate – stability helps with budgeting.
6. Check eligibility for schemes – especially Shared Ownership and First Homes.
❓ First-Time Buyer FAQs
- What is the minimum deposit for a first-time buyer UK 2025?
5%, but 10–15% is recommended. - Do first-time buyers pay Stamp Duty?
No Stamp Duty on homes up to £425,000. - Can I get a mortgage on a £30,000 salary?
Yes — up to ~£135,000 mortgage (depending on affordability). - What is the best mortgage for first-time buyers?
Typically 5-year fixed mortgages for stability. - What schemes help first-time buyers?
Mortgage Guarantee, Shared Ownership, Lifetime ISA, First Homes. - Can first-time buyers use a Lifetime ISA?
Yes — save up to £4,000/year, get 25% government bonus. - How long does it take to get a mortgage?
Typically 2–6 weeks after application.
Conclusion
For first-time buyers in the UK (2025), the journey to homeownership is challenging but achievable. With a minimum 5% deposit, access to government schemes, and mortgage rates stabilising around 3.75%–4.25%, buyers have more options than in previous years.
By understanding affordability, saving wisely, and exploring schemes like Shared Ownership and the Lifetime ISA, first-time buyers can take their first step onto the property ladder with confidence.
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