First-Time Buyer Mortgage: The Complete UK Guide for 2026

A practical, sourced guide to deposits, affordability, mortgage Agreements in Principle, government schemes, property tax, documents, and the application process. Updated July 2026.

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A first-time buyer mortgage is a residential mortgage for someone buying a home without previously owning residential property. Product definitions and tax definitions are not always identical, so confirm eligibility for both the mortgage and any tax relief. The available loan depends on income, spending, deposit, credit, term, and the property.

This guide explains the stages and links to detailed evidence for each decision. MortgageConnector is not a broker and does not recommend a mortgage. We introduce consumers to one matched FCA-authorised broker and receive a referral fee from that broker.

Your home may be repossessed if you do not keep up repayments on your mortgage. Information on this page is for guidance only and is not regulated mortgage advice. Speak to an FCA-authorised mortgage broker before borrowing.

Purchase planning snapshot

Component	Planning treatment
Illustrative 95% LTV deposit	5% of the purchase price, subject to product and applicant eligibility
Lloyds £5,000-deposit launch product	Eligible first-time buyers, homes up to £300,000, maximum 98.34% LTV, and stated exclusions
Stamp Duty (England/NI, FTB)	0% to £300k, 5% £300k–£500k
Legal work and searches	Obtain an itemised conveyancer quote for the property and tenure
Survey	Select an appropriate survey separately from the lender valuation
Mortgage and broker fees	Request all product and advice fees in writing before proceeding

A deposit is only one part of the cash needed. Keep tax, legal work, survey, moving costs, immediate repairs, and an emergency reserve separate.

How much deposit you need

Some products allow 95% LTV, which means a 5% deposit, but there is no universal minimum for every applicant or property. A larger deposit reduces LTV and can widen the available product set. It also reduces the loan and may improve resilience if property values or circumstances change.

Lloyds launched a £5,000-deposit first-time buyer mortgage on 18 May 2026 for eligible homes worth up to £300,000. Its launch terms specify a maximum 98.34% LTV, a five-year fixed term, no product fee, and exclusions including new builds, Shared Ownership, and gifted deposits. The Mortgage Guarantee Scheme supports 95% LTV products across participating lenders.

Detailed guide: How much deposit do you really need as a first-time buyer?

How much you can borrow

Income multiples are only one part of underwriting. Lenders also assess tax, committed spending, credit, dependants, deposit, term, property, and the effect of interest-rate changes. A higher advertised income multiple does not mean every eligible applicant can borrow that amount.

Credit cards, loans, car finance, student-loan deductions, maintenance, childcare, and other recurring commitments can reduce affordability. Enter complete figures and avoid changing or hiding spending solely to obtain a larger provisional result.

Try the affordability calculator for an illustration, then ask a lender or broker to assess the complete application.

Government-backed routes to compare

These routes have different eligibility and may not be combined. Check every scheme and lender condition before relying on one:

Mortgage Guarantee Scheme (UK-wide, permanent from July 2025). Supports 95% LTV mortgages by guaranteeing a slice of the lender's risk. You apply through any participating lender — no separate scheme application is needed. Full guide.
First Homes (England only). Designated new and resale homes are sold with a 30–50% discount that remains attached on resale; national and sometimes local eligibility criteria apply. Full guide.
Shared Ownership (England rules shown). Buy an eligible share and normally pay rent and service charges on the remainder. Deposit and share requirements vary. Hidden costs explained.
Lifetime ISA. Save up to £4,000 per tax year, government adds 25%. Use toward a first home up to £450,000 if all withdrawal rules are met. A proposed replacement product is under consultation, but its final terms and launch date are not settled. LISA guide.

Also compare ordinary mortgages outside a government scheme; a scheme label does not establish affordability or make a product lower cost.

Stamp Duty for first-time buyers

England and Northern Ireland: first-time buyers pay 0% on the first £300,000 and 5% on the portion between £300,000 and £500,000. Above £500,000, standard SDLT rates apply with no FTB relief. The £300,000 threshold returned from £425,000 in April 2025.

Scotland (LBTT): first-time buyer relief raises the nil-rate band to £175,000.

Wales (LTT): no specific FTB relief; the standard nil-rate band applies up to £225,000 for residential transactions.

Calculator: Stamp Duty calculator (UK). Detailed guide: Stamp Duty for first-time buyers in 2026.

The first-time buyer mortgage process

Get an Agreement in Principle (AIP). A provisional borrowing indication. The lender may use a soft or hard credit check, so ask first.
Find a property. Make offers within your AIP budget.
Full application. The lender verifies documents, affordability, credit, deposit, and the proposed property.
Survey and valuation. The lender assesses its security. Consider a separate condition survey appropriate to the property.
Conveyancing. Your solicitor handles searches, contracts, the deposit, completion, and SDLT submission.
Exchange and completion. Your conveyancer explains when the transaction becomes binding and manages the transfer of funds and ownership.

Start with the mortgage in principle guide. Detailed timeline: From AIP to completion. Documents to gather: First-time buyer mortgage checklist.

Broker or direct to lender?

You can approach a lender directly or use a broker. The useful comparison is the service scope, eligible products, cost, and whether the route fits your case. A broker can:

screen the case against the lenders and products within its service scope,
explain the documents and deposit evidence required,
compare rate, fees, restrictions, and total cost together,
coordinate the application and lender questions.

Ask whether the broker is whole-of-market, which products or lenders it cannot access, what it charges, and how it is paid. Complex income, gifted deposits, adverse credit, JBSP, and unusual property types particularly benefit from criteria screening: start the matching form.

Specialist first-time buyer situations

Frequently asked questions

Who counts as a first-time buyer in the UK?

For tax purposes, HMRC defines a first-time buyer as someone who has never previously owned a residential property anywhere in the world. If you or anyone you are buying with has ever held a freehold or leasehold interest in a home — including by inheritance — you do not qualify for first-time buyer Stamp Duty relief.

How much deposit do I need as a first-time buyer in 2026?

Some mortgages allow a 5% deposit, including eligible products under the permanent Mortgage Guarantee Scheme, but this is not a universal minimum. Lloyds also launched a restricted £5,000-deposit product in May 2026. Deposit requirements depend on the applicant, property, scheme and lender, while a larger deposit can widen product choice.

How much can a first-time buyer borrow?

There is no universal income multiple. Lenders assess verified income alongside committed spending, debts, dependants, credit history, term, deposit, property, and interest-rate affordability. Some products use higher or lower income multiples, but the full affordability assessment determines the available loan.

Do first-time buyers pay Stamp Duty?

Eligible first-time buyers in England and Northern Ireland pay no Stamp Duty on the first £300,000 and 5% on the portion between £300,000 and £500,000. Above £500,000 first-time buyer relief does not apply. Scotland uses LBTT with a first-time buyer relief; Wales uses LTT and has no separate first-time buyer relief.

Can I use a gifted deposit?

Potentially. The lender decides which donor relationships and arrangements it accepts. The donor may need to confirm that the money is not repayable and that no interest in the property is expected, while the lender and conveyancer can request identity and source-of-funds evidence. Check the exact policy before transferring the gift.

What government schemes are available for first-time buyers in 2026?

Current routes include the permanent Mortgage Guarantee Scheme, First Homes in England, nation-specific Shared Ownership or shared-equity schemes, and the Lifetime ISA for eligible first-home purchases. Each has separate rules and may not combine with another route. Check the relevant government source before relying on one.

Is the Help to Buy scheme still available?

The Help to Buy Equity Loan scheme in England closed to new applications in 2022, with purchases completing by the scheme deadline in 2023. Existing loans continue under their terms. Current routes include ordinary low-deposit mortgages, the Mortgage Guarantee Scheme, First Homes, Shared Ownership, and a Lifetime ISA where eligible.

Do I need a mortgage broker as a first-time buyer?

No. You can apply directly to a lender or use a mortgage broker. A broker can compare the lenders and products within its service scope and help screen criteria. Ask whether the broker is whole-of-market, which firms or products it cannot access, what it charges, and whether an eligibility check will be soft or hard.

How long does it take to get a mortgage offer?

Timescales vary with the lender, applicant, property, valuation, documents, and legal chain. An Agreement in Principle is provisional and may use either a soft or hard credit check. A formal offer follows full underwriting and property checks; conveyancing and completion are separate stages.

Will my home be repossessed if I can't pay?

Your home may be repossessed if you do not keep up repayments on your mortgage. Contact the lender as soon as possible if a payment may be missed and use a free debt-advice service such as MoneyHelper. Available support depends on the mortgage and circumstances.

More first-time buyer guides

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