How much deposit do you need?
Most first time buyers put down between 5% and 15% of the purchase price. Mortgages are available from a 5% deposit with the right lender, and every extra 5% you can save typically unlocks a better band of deals.
- 5% deposit - the realistic starting point for many first time buyers
- 10% deposit - opens up a wider choice of lenders and deals
- 15-25% deposit - stronger rates and more flexible lending criteria
- Gifted deposits from family are accepted by most lenders, with the right paperwork
If a parent or relative is gifting part of your deposit, lenders will want a signed letter confirming the money is a gift rather than a loan. We prepare all of this with you as part of the application.
How much can you borrow?
As a rule of thumb, lenders offer around four to four and a half times your annual income, with some going further for the right applicant. The exact figure depends on the lender's affordability assessment - your income, your regular outgoings, debts and dependants all feed into it.
Things that affect how much you can borrow:
- Your income, including how lenders treat overtime, bonuses and commission
- Employment type - employed, newly employed, contractor or self-employed
- Existing commitments such as loans, car finance and credit cards
- Your credit history
- The size of your deposit
Because criteria differ between lenders, two buyers with the same salary can be offered different amounts. Comparing deals from a range of lenders can show those differences. If your credit history is not spotless, our bad credit mortgage advice covers that ground too.
The process step by step
- Chat and fact find: We talk through your income, deposit and plans, and answer every question - there is no such thing as an obvious one
- Agreement in principle: A lender confirms in principle how much you can borrow - estate agents usually expect to see this before accepting an offer
- Find your home and make an offer: With your budget confirmed you can offer with confidence
- Full application: We submit the application, the lender values the property - free on most purchases through LifePro - and underwriting begins
- Mortgage offer and legal work: The lender issues a formal offer and your solicitor completes searches and contracts
- Exchange and completion: Contracts are exchanged, funds are released and you collect the keys
From offer accepted to completion typically takes two to three months, driven mostly by the legal work and the chain rather than the mortgage itself.
Schemes and support for first time buyers
Alongside standard mortgages, several routes exist to help first time buyers with smaller deposits or lower incomes:
- Low-deposit mortgages - 5% deposit deals, some supported by government guarantee arrangements
- Shared ownership - buy a share of a home and pay rent on the rest, with the option to buy more later
- First time buyer stamp duty relief - first time buyers pay reduced or no stamp duty up to set thresholds
- Family assistance mortgages - some lenders let family savings or property act as security in place of a deposit
- Lifetime ISA savings - government-boosted savings that can be put towards a first home
Schemes come with conditions and are not right for everyone. Your adviser will tell you whether any of them genuinely improves your position or whether a standard mortgage serves you better.
Costs and fees
Buying your first home comes with costs beyond the deposit. The main ones to plan for:
- Valuation cost or incentive - depends on the selected lender product
- Solicitor and conveyancing fees
- Lender arrangement or product fee on some deals - we compare deals with and without fees on overall cost
- Stamp duty - reduced or zero for most first time buyers within the relief thresholds
- Our broker fee - typically £1,250, confirmed with you in writing before you commit to anything
Full details of how we charge are set out in our regulatory statement.
Why use LifePro for your first mortgage?
- Independent mortgage brokers comparing a range of UK lenders
- Access to a range of UK lenders, including those who welcome 5% deposits and new jobs
- Valuation terms depend on the selected lender product
- CeMAP qualified advisers
- Plain-English guidance from first chat to completion day
Once your mortgage is in place, protecting it matters too - our mortgage life insurance team can make sure the mortgage would be repaid if the worst happened.
