First-time buyer mortgages

The deposit, the tax and the schemes available to you all change what you can buy, so it pays to work them out before you start viewing.

Last checked 13 September 2026.

Eight sections. Each anchored to a first-party source, checked 13 September 2026.

1. Who counts as a first-time buyer

HMRC defines a first-time buyer as someone who has never owned a freehold or leasehold interest in a dwelling in the UK or abroad. A joint purchase qualifies for relief only if both buyers are first-timers (GOV.UK — SDLT first-time buyers). Inheriting a share in a property generally disqualifies you, even if you never lived there and sold your share immediately. If you are unsure, ask a solicitor before you apply: a broker cannot advise on tax eligibility.

2. Stamp duty relief in England and Northern Ireland

First-time buyers in England and Northern Ireland pay no Stamp Duty Land Tax up to £300,000 and 5% on the portion from £300,001 to £500,000. The relief is not available if the purchase price exceeds £500,000 — at that point standard rates apply to the whole amount (GOV.UK — SDLT rates). Work out your figure with the stamp duty calculator.

Scotland and Wales have equivalent taxes at different rates: Land and Buildings Transaction Tax in Scotland (mygov.scot) and Land Transaction Tax in Wales (GOV.WALES).

3. Lifetime ISA

You must open a Lifetime ISA before your 40th birthday. You can pay in up to £4,000 a year, and the government adds a 25% bonus — up to £1,000 per tax year — until you turn 50 (GOV.UK, Lifetime ISA). The property must cost no more than £450,000, and you must be a first-time buyer. Withdrawing for any other reason before 60 triggers a 25% government withdrawal charge, which takes back more than the bonus. Read the full GOV.UK guidance before relying on it for a purchase.

4. Deposit sources

Most lenders accept deposits from savings, investments, or a gift from a close family member. A gifted deposit is common but requires paperwork: the donor typically signs a letter confirming the money is a gift with no expectation of repayment, and the lender's conveyancer will carry out anti-money-laundering checks (Money Laundering Regulations 2017). See our gifted deposit guide for what the lender will ask for.

5. Deposit size and rates

A 5% deposit is the minimum most lenders will accept; the market widens materially at 10% and further at 15% and above. A bigger deposit lowers your loan-to-value ratio, which usually unlocks better rates. Use the borrowing calculator and LTV calculator to see where you stand, then estimate repayments with the repayment calculator.

6. Agreement in principle

Before you start serious viewings, get an agreement in principle (AIP) from a lender or through your broker. An AIP is not a mortgage offer, but it shows estate agents you are a credible buyer and gives you a realistic borrowing figure to work from. Most run for 60 to 90 days. Some lenders do a soft credit search for the initial AIP; others do a hard search that leaves a mark on your credit file. See our AIP guide for what to ask before the broker applies.

7. Joint borrower sole proprietor

Some lenders allow a parent or other close relative to be added to the mortgage application as a borrower but not to the property title. Their income is counted, which raises what you can borrow; they do not become an owner. The parent pays the additional-property surcharge on stamp duty if they own other property, which changes the maths for some families. Ask your broker specifically whether the lender you are considering supports this model and what the stamp duty position is.

8. Questions to ask a broker

At the first conversation the broker must tell you the range of lenders they can access and any fee they charge (MCOB 4.4A.1R and 4.4A.8R). Beyond that:

• Are you whole-of-market, or do you work from a lender panel?
• What will this cost me in total, and when does the fee become payable?
• Have you placed first-time buyer cases with a 5% or gifted deposit recently, and with which lenders?
• Can you also check if a Lifetime ISA is worth opening before I apply?
• What happens if my purchase falls through — is your fee refundable?

Brokers whose website mentions first-time buyer mortgages

886 firms in our directory mention first-time buyer mortgages on their own website. That's what they say about themselves, not an assessment by us, so check that a firm handles your situation and look it up on the FCA Register before taking advice.

More guides

• How to choose a mortgage broker
• Mortgage declined
• Cifas markers and mortgages
• Mortgages with bad credit
• Mortgages for the self-employed
• Buy-to-let mortgages
• Remortgage guide
• Contractor mortgages
• Agreement in Principle
• Credit score and mortgages
• Mortgage broker fees
• Divorce and mortgages
• Gifted deposit
• Should you use the estate agent's recommended broker?
• Documents for a mortgage application
• What happens at a mortgage fact-find
• New build mortgages

General information, not advice. Mortgage Brokers List is a directory and a set of free tools. Only an FCA-authorised adviser can recommend a mortgage for your circumstances. See our editorial standards.