First-time buyers
Buying your first home? Let's find out what you could borrow.
No jargon and no pressure. Tell us your deposit and income and we'll come back with a realistic budget, an idea of your monthly payments and the deals you're likely to qualify for — free, and with no impact on your credit score.
How much could I borrow?
As a rough guide, lenders often lend around 4 to 4.5 times your household income — but your deposit, outgoings and credit history all change the answer. Here's the language you'll hear along the way, in plain English.
Deposit
The cash you put in yourself. Most lenders want at least 5%, though 10% or more usually unlocks better rates.
Loan to value (LTV)
How much you're borrowing compared with the price of the home. A bigger deposit means a lower LTV — and normally a cheaper rate.
Agreement in principle
A lender's early indication of what they'd lend you. Estate agents often want to see one before they take your offer seriously.
Fixed vs tracker
A fixed rate keeps your payment the same for a set period. A tracker moves with the Bank of England base rate, up or down.
Fees
Arrangement fees, valuation fees, legal costs and stamp duty (many first-time buyers pay none). We include these when we compare deals.
Affordability
Lenders look at your income, outgoings and credit history — not just the deposit — to decide what you can borrow.
Your first purchase, step by step
- 1
Work out your budget
We look at your deposit, income and outgoings and tell you realistically what you could borrow.
- 2
Get an agreement in principle
A quick lender check so you can make offers with confidence. It doesn't commit you to anything.
- 3
Make an offer and apply
Once your offer is accepted we submit the full application and the lender values the property.
- 4
Offer, exchange, keys
Your solicitor handles the legal side, you exchange and complete — and pick up the keys.
Call us
01244 571640
Email us
hello@mortgagecostcomparison.co.uk
Where we work
Nationwide — advice by phone across the UK
First-time buyer questions, answered
The questions first-time buyers ask us most often.
- How much deposit does a first-time buyer need?
- Most lenders want at least 5% of the purchase price, so £12,500 on a £250,000 home. A 10% deposit usually unlocks noticeably better rates, and some lenders offer 100% or guarantor options in limited circumstances.
- How much can a first-time buyer borrow?
- As a rule of thumb, four to four and a half times your annual income, and some lenders stretch to five or five and a half times for certain professions or higher earners. Credit commitments, childcare and other regular outgoings reduce the figure, so the only reliable answer comes from checking your situation against real lender criteria.
- What is an agreement in principle and do I need one?
- It is a lender's early indication of what they would lend you, based on a soft check. Most estate agents want to see one before they take an offer seriously, and it usually lasts around 30 to 90 days. We can arrange one for you.
- Do first-time buyers pay stamp duty?
- First-time buyer relief means many pay no stamp duty up to a threshold, with a reduced rate above it. Thresholds change with government policy and differ in Scotland and Wales, so your adviser confirms what applies to your purchase at the time you buy.
- How long does it take to buy a first home?
- Typically two to three months from an accepted offer to completion. The mortgage offer itself often arrives within two to four weeks; the rest is searches, legal work and the chain.
- Should a first-time buyer choose a fixed or tracker rate?
- Most first-time buyers choose a fix, usually two or five years, because a payment that cannot change makes budgeting far easier in the first years of ownership. A tracker can cost less if rates fall, but your payment moves with the Bank of England base rate.