First-time buyer mortgage guide (2025)

A first-time buyer’s mortgage guide for 2025

Buying your first home is exciting—but the mortgage process can feel unfamiliar. This guide explains how first-time buyers typically get a mortgage in the UK in 2025, what lenders look for, and how to prepare so your application is as strong as possible.

Who this guide is for

This guide is aimed at first-time buyers who are:

• Buying alone or with someone else
• Considering help from family (for example, a gifted deposit)
• Worried about credit history or past financial issues
• Working with a tighter budget or lower affordability
• Looking to move quickly once you find the right property

How first-time buyers get a mortgage in 2025 (overview)

Most first-time buyer mortgage applications follow a similar pattern:

1. Check affordability (so you know what you can realistically borrow)
2. Prepare your documents (to support income, identity and outgoings)
3. Review your credit profile (so there are no surprises)
4. Get a mortgage in principle (to show you’re a serious buyer)
5. Choose the right mortgage type (repayment/interest-only, fixed/variable, term)
6. Submit the full application and respond to lender questions promptly

While every lender has its own approach, the fundamentals are consistent: your income, your commitments, your deposit and your credit history all play a role.

Step 1: Work out affordability before you start viewing

It’s easy to focus on the property price, but lenders assess affordability based on your overall financial position.

What “affordability” usually means

Lenders typically consider:

• Your income (and whether it’s stable)
• Your regular monthly commitments (for example, credit cards, loans, existing finance)
• Your deposit and how much you’re borrowing
• Your employment status and any relevant expenses

A note on income multiples

You may hear about income multiples (for example, how many times your salary a lender may consider). In practice, lenders don’t rely on a single number—they look at your full circumstances, including expenses and credit behaviour.

Step 2: Gather the documents lenders commonly request

Having your paperwork ready can reduce delays once you’re ready to apply.

While requirements vary by lender and mortgage type, first-time buyers are often asked for evidence such as:

• Payslips (often covering recent months)
• Bank statements (to support income and spending patterns)
• Identification and proof of address
• Details of any regular outgoings (for example, loans or credit commitments)

If you’re self-employed, have variable income, or are paid commission/bonus, the document list can be different—planning ahead helps.

Step 3: Understand your credit profile (and what can affect it)

Your credit history can influence whether a lender is willing to lend and on what terms.

What lenders look at

Credit checks typically consider factors like:

• Whether you pay credit commitments on time
• How much credit you currently use
• Whether you have any defaults, arrears, or County Court Judgments (CCJs)
• Your overall credit activity (including how long accounts have been open)

Practical ways to strengthen your position

Before you apply, it’s worth focusing on the basics:

• Pay down small debts where possible
• Make sure you’re not missing payments
• Check you’re registered on the electoral roll
• Avoid taking on new credit shortly before applying

If you’re unsure how your credit history will be viewed, it’s often helpful to review it early so you can plan your next steps.

Step 4: Consider a mortgage in principle

A mortgage in principle (sometimes called an agreement in principle) is an initial indication from a lender that they may be willing to lend based on the information provided.

Why it can help

• It can make your offer more credible to estate agents
• It gives you a clearer sense of your borrowing range
• It can reduce uncertainty while you search

How long it lasts

Mortgage in principle offers are time-limited, and the validity period can vary by lender. It’s important to treat it as a guide rather than a final decision.

Step 5: Choose the right mortgage structure for your situation

First-time buyers often choose between different mortgage types and repayment structures.

Common mortgage choices

• Repayment mortgages: you pay interest and reduce the balance over time
• Fixed-rate deals: monthly payments stay the same for a set period
• Variable-rate deals: payments can change depending on the lender’s terms

The “best” option depends on your budget, how long you plan to stay in the property, and how comfortable you are with payment changes.

Step 6: Deposit options and loan-to-value (LTV)

Your deposit size affects how much you borrow, which is often described using loan-to-value (LTV).

Why LTV matters

• A larger deposit generally means a lower LTV
• Lower LTVs can open up more options with some lenders
• Very high LTV mortgages may be available, but terms can vary significantly

Gifted deposits and family support

Many first-time buyers receive help from family. Lenders may require evidence of the source of funds and how the gift is structured.

It’s also worth noting that “help” can take different forms, such as:

• A gift (no repayment expected)
• A loan between family members
• Other arrangements that may need additional documentation

Step 7: Submitting the application and what happens next

Once you’ve found a property and your mortgage application is moving forward, lenders will assess the full details.

During the application

You may be asked to provide additional information or clarify aspects of your circumstances. Responding quickly and accurately can help keep things moving.

After the lender’s decision

The mortgage process continues through conveyancing and completion. It’s common for timelines to be affected by factors outside the mortgage itself, such as property searches, valuations, and legal work.

Common first-time buyer questions (2025)

Can I buy with a 5% deposit?

In some cases, first-time buyers may be able to access mortgages with lower deposits. Availability and terms depend on your affordability, credit profile, and the specific lender criteria at the time.

Will bad credit stop me getting a mortgage?

Not necessarily. Some lenders may consider applicants with adverse credit, but outcomes depend on the type of credit issue, how recent it is, and how the rest of your application looks (including income and affordability).

What if my parents are helping with the deposit?

Family support is common. Lenders may ask for proof of funds and details of how the contribution is being provided. The key is ensuring the arrangement is properly documented.

Is a mortgage in principle the same as a mortgage offer?

No. A mortgage in principle is an initial indication based on information provided early in the process. A full mortgage offer follows once the lender has carried out more detailed checks.

A first-time buyer checklist for 2025

Use this as a practical preparation list:

• Review your affordability and monthly budget
• Collect documents (income, identity, address, and statements)
• Check your credit profile and address any obvious issues
• Plan your deposit (including any gifted funds documentation)
• Consider mortgage in principle before you commit to an offer
• Keep your finances stable while your application is assessed

How a mortgage broker can add value (without changing your responsibility)

A broker’s role is to help you understand your options and present your application in a way that fits your circumstances. For first-time buyers, this can be especially useful when:

• You’re comparing different mortgage types and terms
• You have complex income (for example, commission or variable earnings)
• You’re working with a smaller deposit or higher LTV
• Your credit history isn’t straightforward
• You want to reduce avoidable delays by preparing properly

Tools and resources that can support the process

Many first-time buyers find it helpful to use calculators and planning tools to estimate:

• Likely repayments
• Affordability ranges
• Stamp duty considerations

These tools can help you budget more confidently as you move from searching to applying.