Buying your first home is exciting—but let’s be honest, it can also feel overwhelming. From saving a deposit to applying for your mortgage and understanding stamp duty, the process can feel like navigating a maze. But don’t worry—you’re not alone.
If you’re wondering how to get a mortgage when you’re a first-time buyer, this guide will walk you through the entire journey. We’ll also show you how to avoid common pitfalls and make confident decisions, whether you’re buying a flat in London or your first family home in the suburbs.
Step 1: Get Your Finances Ready
Before you even start scrolling through property listings, get your finances in order. Most mortgage lenders offer around 4.5 times your annual income—but affordability also depends on your outgoings, credit score, and deposit.
Let’s say you’re eyeing a £300,000 property. If you’re aiming for a 10% deposit, that’s £30,000 to save. But don’t panic—if that sounds steep, 95% mortgages are also available, meaning you’d only need to save £15,000.
Tip: Consider a Lifetime ISA. You can save up to £4,000 each year, and the government adds 25%—that’s up to £1,000 free money annually. Learn more on Gov.uk
Also, check your credit rating. A healthy score could mean better mortgage rates, potentially saving you thousands in the long run.
Property Price |
Stamp duty percentage to pay |
£0 – £300,000 |
0% |
£300,000 – £500,000 |
5% |
£500,000+ |
Normal stamp duty rates apply |
Property price |
Stamp duty percentage to pay |
£0-£125,000 |
0% |
£125,000 – £250,000 |
2% |
£250,000 – £925,000 |
5% |
£925,000 – £1.5m |
10% |
£1.5m+ |
12% |
Step 2: Understand Stamp Duty Rules
Stamp duty can be a hidden cost that catches many first-time buyers off guard. The good news? If you’re buying your first property before 31 March 2025, you won’t pay stamp duty on the first £425,000. For property prices between £425,001 and £625,000, you’ll pay 5% on the amount above £425,000.
However, from 1 April 2025, the threshold drops. You’ll only get stamp duty relief on properties up to £300,000.
Link to the official HMRC stamp duty calculator so users can check exact costs.
Step 3: Compare Mortgage Rates
Not all mortgages are created equal. You could approach lenders directly—but using a whole-of-market broker can save time and possibly money. Brokers can compare hundreds of deals and may uncover options you wouldn’t find on your own.
Many brokers don’t charge first-time buyers. For example, Mojo Mortgages works with 70+ lenders and charges no broker fee. Services like these are a smart starting point.
Check FCA-approved mortgage broker on MoneySavingExpert.
Step 4: Choose the Right Mortgage Term
A 25-year mortgage used to be the norm, but today many first-time buyers choose 30- or even 35-year terms to keep monthly payments manageable.
It’s a trade-off: longer terms mean smaller payments now, but more interest paid overall. If your income is expected to rise in the future, this flexibility could work well.
For example, a £250,000 mortgage over 25 years might cost £1,100/month, while stretching it to 35 years could reduce payments to around £850/month—but increase the total cost over time.
Step 5: Work Out What You Can Afford Monthly
The rule of thumb? Don’t spend more than 28% of your gross monthly income on mortgage repayments. It’s a standard most lenders use, and it’ll help you avoid stretching yourself too thin.
Use online calculators to get a realistic idea of your potential monthly payments—and how rate changes could impact you. Use this mortgage calculator from MoneyHelper for accurate, UK-specific estimates.
Step 6: Get a Mortgage Agreement in Principle (AIP)
An Agreement in Principle is a non-binding statement from a lender saying they’re willing to lend you a specific amount. While not the same as a full mortgage offer, it shows estate agents you’re a serious buyer.
To get an AIP, you’ll need to supply income, savings, and credit info. It only takes a few minutes online with most lenders.
Step 7: Apply for Your Mortgage Offer
Once you’ve found your dream home and your offer’s been accepted, it’s time to finalise your mortgage.
You don’t have to use the same lender that gave you the AIP. This is the stage where you submit your full mortgage application, complete with identity checks, payslips, bank statements, and possibly proof of savings or gifted deposits.
Be patient. This part can take 2–6 weeks as lenders review everything and carry out credit checks.
Final Thoughts: Getting a Mortgage as a First-Time Buyer
Knowing how to get a mortgage when you’re a first-time buyer can be the difference between feeling confident and feeling lost. With the right preparation, tools, and guidance, you can turn your homeownership dream into a reality—without unnecessary stress.
If you’re still unsure, speak to a qualified mortgage adviser who understands the first-time buyer landscape. And remember, at London Stays, we’re here to help you find the perfect home to match your future plans.
