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ePayment Financial Solutions

FIRST TIME BUYER MORTGAGES

First Time Buyer Mortgage

Buying your first home is a major milestone. We help first-time buyers understand their deposit, borrowing options, available schemes and costs, so you can approach your first purchase with confidence.

UNDERSTANDING FIRST TIME BUYING

What Is a First Time Buyer Mortgage?

A first-time buyer mortgage isn't a separate type of mortgage. It is normally a standard residential mortgage, but first-time buyers can benefit from higher loan-to-value options, government savings incentives and stamp duty relief.

01

Never Owned a Home?

To qualify as a first-time buyer, you must not have previously owned a residential property interest, whether freehold or leasehold, anywhere in the world.

02

Your Main Residence

The property must normally be intended as your main home rather than a buy-to-let or investment property.

03

Buying Jointly?

If you are purchasing with another person, every buyer generally needs to meet the relevant first-time buyer requirements.

DEPOSIT & AFFORDABILITY

How Much Deposit Do First Time Buyers Need?

Many lenders offer mortgages with deposits starting around 5%, although having a larger deposit can unlock lower loan-to-value bands and potentially better mortgage rates.

A 10–15% deposit can give you access to a wider range of products, while some lenders have specialist affordability options designed specifically for first-time buyers.

Standard affordability is often around 4.5 times income, although some lenders may offer higher income multiples where their specific criteria are met.

5–10% Typical minimum deposit range with some lenders
10–15% A larger deposit can unlock better LTV bands
4.5× Typical standard income multiple for affordability
6× Higher multiples may be available with selected lenders
STAMP DUTY RELIEF

First Time Buyer Stamp Duty Relief

Since April 2025, first-time buyer stamp duty relief in England and Northern Ireland is less generous than it previously was. The amount you pay depends on the purchase price.

0%

Up to £300,000

No stamp duty is payable on the first £300,000 of an eligible first-time buyer purchase.

5%

£300,001–£500,000

A 5% rate applies to the portion of the purchase price within this band.

STANDARD

Above £500,000

First-time buyer relief is not available and standard stamp duty rates apply to the purchase.

Important: Stamp duty normally needs to be funded separately. Most lenders will not allow you to simply add the stamp duty bill to your mortgage borrowing.
AVAILABLE OPTIONS

Schemes & Routes for First Time Buyers

Depending on your circumstances, there may be several ways to reduce your deposit requirement or improve your ability to buy.

01

Lifetime ISA

Save up to £4,000 a year and receive a 25% government bonus, potentially adding up to £1,000 annually. Eligibility and property price limits apply.

02

Mortgage Guarantee Scheme

Supports selected 95% loan-to-value mortgage lending, potentially allowing eligible buyers to purchase with a smaller deposit.

03

First Homes

Selected new-build properties may be available at a discount to eligible local first-time buyers, subject to scheme criteria.

04

Shared Ownership

Purchase a percentage of a property and pay rent on the remaining share, potentially reducing the initial deposit required.

05

Joint Borrower Sole Proprietor

A family member may contribute their income to help improve affordability without necessarily being named on the property's title.

06

Guarantor Options

In suitable circumstances, a guarantor arrangement can help strengthen an application where the buyer's own income or deposit is limited.

Worth knowing Help to Buy equity loans have ended, while Deposit Unlock closed to new completions in April 2026.
THE PROCESS

How Does the First Time Buyer Process Work?

Getting your finances organised before you start viewing properties can make the buying process considerably smoother.

01

Prepare Your Credit

Check your credit file, register on the electoral roll and reduce outstanding credit card balances where possible.

02

Save Your Deposit

Build your deposit and remember to keep additional funds available for stamp duty, legal fees, surveys and other costs.

03

Consider a LISA

If eligible, opening a Lifetime ISA early may allow you to benefit from the government bonus towards your purchase.

04

Get a Decision in Principle

Establish how much you may be able to borrow before seriously viewing properties or making an offer.

05

Make an Offer

Once you have found the right property, submit your offer with your mortgage position already established.

06

Submit Your Application

Provide your identification, income evidence, bank statements and other documents requested by the lender.

07

Valuation & Underwriting

The lender assesses your application and carries out a valuation of the property.

08

Mortgage Offer

Once approved, the lender issues a formal mortgage offer, typically valid for several months.

09

Conveyancing

Your solicitor handles searches, enquiries, contracts and the legal work required for the purchase.

10

Exchange & Completion

After exchange you become legally committed to the purchase. Completion follows, giving you the keys to your new home.

PLAN YOUR BUDGET

Costs Beyond Your Deposit

Your deposit is only part of the money needed to complete your first home purchase. Planning for the additional costs can help avoid surprises later.

£

Conveyancing

Legal costs for the purchase can commonly be around £1,000–£2,000 depending on the property and solicitor.

⌂

Survey

A survey can cost around £300–£1,500 depending on the property and level of inspection required.

%

Mortgage Fees

Arrangement fees can be around £1,500 or more depending on the mortgage product selected.

+

Other Expenses

Budget for valuation and Land Registry fees, removals, insurance and any applicable stamp duty.

Don't use every penny for the deposit Keeping a separate cash buffer for fees and unexpected costs can make your first few months as a homeowner much easier.
£
SELF-EMPLOYED BUYERS

First Time Buyer & Self-Employed?

If you are self-employed or run your own business, lenders may assess your income differently from an employed applicant.

Many lenders will ask for two or three years of accounts or SA302s and may assess affordability using net profit, salary and dividends rather than business turnover.

Some lenders may consider applicants with only one year's accounts, but criteria vary considerably between lenders. This is where specialist mortgage advice can be particularly valuable.

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IMPORTANT TO KNOW

The Lender's Valuation Doesn't Protect You

When your mortgage lender carries out a valuation, its main purpose is to establish whether the property provides enough security for the mortgage.

It is not the same as a detailed survey designed to identify defects or potential problems with the property.

Consider arranging your own homebuyer's report or building survey so you understand the condition of the property before committing to the purchase.

WHY GET ADVICE?

Make Your First Home Purchase With Confidence

First-time buyers have more mortgage options than simply choosing the cheapest rate. Understanding affordability, schemes, deposit requirements and lender criteria can make a significant difference.

✓

Understand Your Budget

Establish a realistic borrowing level and understand how much you can comfortably spend.

✓

Explore Your Options

Compare different deposit levels, mortgage products and first-time buyer routes.

✓

Find Suitable Lenders

Different lenders use different affordability and income criteria, particularly for self-employed applicants.

✓

Plan Before You Offer

Get your mortgage position clear before committing to your first property purchase.

READY TO BUY YOUR FIRST HOME?

Let's Find the Right Mortgage for Your First Home

Whether you're saving a 5% deposit, considering a Lifetime ISA, buying through a scheme or applying while self-employed, we're here to help you understand your mortgage options.