Buying your first home is a significant milestone, but navigating the process can feel overwhelming. Our First-Time Buyer Guide provides all the information you need to secure your first mortgage in the UK in 2025. Let us help you turn your dream into reality with expert advice and guidance.
What Is a First-Time Buyer Mortgage in the UK?
A first-time buyer mortgage is a loan specifically for those purchasing their first home. It involves borrowing from a lender and repaying the amount over time with interest. Key components include:
- Principal: The loan amount.
- Interest: The cost of borrowing.
- Loan-to-Value Ratio (LTV): The percentage of the property’s value covered by the loan versus your deposit.
Learn more about first-time buyer mortgages in our First-Time Buyer Mortgage Guide.
How Much Can You Borrow as a First-Time Buyer?
Your borrowing capacity depends on:
- Income and Expenditure: Lenders generally offer loans of 4–4.5 times your annual income. However, some lenders, such as Nationwide, Halifax, and Leeds Building Society (Leeds BS), offer up to 5.5 income multiples for first-time buyers, subject to minimum income criteria. This provides extra support for those with stable, higher incomes.
- Deposit Size: Deposits typically range from 10–20%. A larger deposit reduces your LTV, unlocking better interest rates.
- Credit Score: A good credit score increases your chances of approval and access to competitive deals.
Use our mortgage calculator to estimate your borrowing power and explore tailored support in our First-Time Buyer Guide.
Best Types of Mortgages for First-Time Buyers in 2025
Explore these options to find a mortgage that suits your needs:
- Fixed-Rate Mortgages: Ensure predictable monthly payments with a fixed interest rate for 2, 5, or 10 years.
- Variable-Rate Mortgages: Rates change based on market conditions, including tracker mortgages and standard variable rates (SVR).
- Offset Mortgages: Reduce interest by linking savings to your mortgage.
- Interest-Only Mortgages: Pay interest only, with the principal due at the end of the term.
Check out our First-Time Buyer Mortgage Guide for a detailed breakdown of each type.
Find Out How Much Can You Borrow as a First Time Buyer?
Saving for Your First Mortgage Deposit
Saving for a deposit is often the most challenging step. Make it achievable with these tips:
- Open a Lifetime ISA: Save up to £4,000 annually with a 25% government bonus.
- Budget Realistically: Identify areas to cut costs and automate savings.
- Shared Ownership Schemes: Buy a portion of a property and pay rent on the remainder, requiring a smaller deposit.
Government Schemes for First-Time Buyers in 2025
Take advantage of these programs:
- Help to Buy Equity Loan: Borrow up to 20% (40% in London) of a new-build home’s value.
- First Homes Scheme: Save up to 30% on new-build homes.
- Shared Ownership: Gradually increase your ownership of a property.
Learn more about eligibility in our First-Time Buyer Mortgage Guide.
Costs to Consider When Buying Your First Home
Be prepared for these costs:
- Upfront Costs: Deposit, solicitor fees, mortgage arrangement fees, and stamp duty (relief available for homes under £425,000).
- Ongoing Costs: Council tax, home insurance, and maintenance.
Plan your finances effectively using our First-Time Buyer Guide.
Top Tips to Secure the Best Mortgage
Maximize your chances of approval with these tips:
- Check Your Credit Score: Correct errors and improve financial habits.
- Get Pre-Approved: A Mortgage Agreement in Principle strengthens your position.
- Use a Broker: Access exclusive deals tailored to first-time buyers.
- Leverage Extra Support: Nationwide, Halifax, and Leeds BS offer enhanced borrowing options for eligible buyers.
- Increase Your Deposit: Larger deposits unlock better terms.
Ready to Take the Next Step?
With extra support from lenders like Nationwide, Halifax, and Leeds BS, securing your first home in 2025 is within reach. Download our First-Time Buyer Guide or contact Contractor Mortgage Solutions for personalized advice and tailored solutions.