Buying your first home is an exciting milestone, but finding the right first-time buyer mortgage can feel overwhelming.
With so many mortgage products, lender requirements, affordability checks, and deposit options to consider, understanding where to start isn’t always straightforward.
At Smart City Mortgages, we provide first-time buyer mortgage advice to clients across the UK, including London. As an FCA-authorised mortgage broker, we compare mortgage options available from a wide range of lenders, understand borrowing limits, deposit requirements, affordability assessments, and lender criteria, and navigate every stage of the mortgage application process. Whether you’re purchasing your first property with a small deposit or simply want expert guidance before making an offer, our experienced mortgage advisers for first-time buyers are here to help.
First-time buyer mortgage advice
Buying your first property is exciting, but it requires financial decisions with lasting impact. If you are new to the process, understanding lender assessments, mortgage products, and required documentation can be challenging.
Professional mortgage advice can help you understand your borrowing potential before you begin viewing properties. An adviser can explain your options, identify lenders that suit your circumstances, and guide you through every stage of the application process. This can help you avoid unnecessary delays, reduce the risk of declined applications, and give you greater confidence when making one of the biggest purchases of your life.
Whether you are buying alone, with a partner, using a gifted deposit, or considering government home ownership schemes, tailored advice early in the process can make your home-buying journey smoother.
Why use a mortgage broker as a first-time buyer
Many first-time buyers begin by speaking to their bank, which can be helpful, but banks only offer their own mortgage products. A mortgage broker compares products from multiple lenders to help you find options that better fit your financial situation and long-term goals.
At Smart City Mortgages, we take time to understand your circumstances before recommending suitable mortgage solutions. We help you determine how much you can borrow, explain the differences between mortgage products, assist with obtaining an Agreement in Principle (AIP), and support you throughout the application process.
Our advisers work closely with lenders, solicitors, and estate agents to keep your purchase moving forward. With an experienced adviser, you will always have someone to answer your questions, explain next steps, and resolve any issues.
How to get your first mortgage
Securing your first mortgage requires more than choosing a property. Lenders assess your finances, affordability, deposit, and documentation to determine how much they may lend. Understanding each stage of the process helps you prepare and increases your chances of approval.
Step 1
Check your budget and affordability
Before searching for a property, determine how much you can borrow and what monthly repayments you can afford.
Lenders consider more than your annual income. They review your spending, existing debts, household expenses, childcare costs, and overall financial situation. Their assessment ensures you can afford the mortgage now and in the future. Reviewing your finances early clarifies your budget and helps you focus on properties within your price range.
Step 2
Save your deposit
Once you know your budget, start saving for your deposit.
Many lenders offer first-time buyer mortgages with deposits starting at 5% of the property’s value, though some may accept less in specific cases. A larger deposit can expand your mortgage options, lower your Loan-to-Value (LTV) ratio, and may give you access to a wider choice of mortgage products and potentially more competitive interest rates, depending on your circumstances. Knowing your required deposit before house hunting helps you plan your finances effectively.
Step 3
Prepare your documents
Preparing your paperwork in advance streamlines the mortgage process.
Most lenders require proof of identity, address, income, recent bank statements, and documentation for your deposit source. Additional documents may be needed based on your employment status. Have these documents ready — to reduce delays and help your application progress efficiently.
Step 4
Get an agreement in Principle (AIP)
Many first-time buyers obtain an Agreement in Principle (AIP) before making offers on properties.
An AIP indicates how much a lender may lend based on an initial review of your finances, subject to a full application and further checks. While not a formal offer, it shows estate agents and sellers you are a serious buyer and can strengthen your position. At Smart City Mortgages, we can help you obtain an Agreement in Principle and explain the information lenders typically require.
Ready to find out how much you could borrow and want an AIP?
Speak to one of our mortgage advisers today and take the first step towards owning your first home.
What is an agreement in Principle (AIP)?
An Agreement in Principle (AIP), also called a Mortgage in Principle or Decision in Principle, is a lender’s estimate of how much they may lend after an initial review of your finances. An AIP is not a formal mortgage offer or a guarantee of approval, but it helps you determine your budget before viewing properties. Estate agents and sellers often view an AIP as proof that you are a serious buyer.
When should you get an AIP?
Many first-time buyers obtain an Agreement in Principle before making an offer. An AIP helps you focus on properties within your budget and can strengthen your negotiating position.
Will an AIP affect your credit score?
Whether an AIP affects your credit score depends on the lender. Some conduct a soft credit check, while others perform a hard credit search. Your mortgage adviser can explain each lender’s approach before you apply.
At Smart City Mortgages, we can help you secure an Agreement in Principle and guide you through the next steps of your mortgage application.
Common challenges for first-time buyers
First-time buyers often encounter common challenges in the property market. Being aware of these issues in advance can help you prepare and strengthen your application.
1
Saving a deposit
Rising property prices make saving for a deposit one of the main challenges for first-time buyers. Although many lenders accept a 5% deposit, the amount you save impacts your Loan-to-Value (LTV) ratio. A larger deposit can give you access to more lenders and mortgage products, but it does not always result in a lower interest rate.
2
Affordability checks
Mortgage lenders evaluate more than your salary when assessing affordability. They review your income, household expenses, existing loans, credit card commitments, childcare costs, and other financial obligations. These factors influence the amount you can borrow.
3
Student loans
Many buyers worry that student loan repayments will prevent them from getting a mortgage. In most cases, student loans do not automatically stop an application from being approved. Instead, lenders usually consider the monthly repayments as part of their affordability assessment.
4
Gifted deposits
Family members often assist first-time buyers by contributing to the deposit. Most lenders require evidence that these funds are a genuine gift, such as a gifted deposit letter. Lenders may also request proof of funds and conduct Anti-Money Laundering (AML) and source-of-funds checks before approving the mortgage.
5
Credit history issues
Even minor missed payments can limit your mortgage options. Although a perfect credit score is not necessary, a stronger credit profile may provide access to more lenders and better mortgage products.
6
Self-employed first-time buyers
If you are self-employed and buying your first home, lenders may require additional documents, such as HMRC SA302s, tax calculations, or company accounts, in addition to standard application paperwork.
Our self-employed mortgage advice service explains how lenders assess various income types and guides you in preparing the necessary documentation for your application. Visit our Self-Employed Mortgages page to learn more.
At Smart City Mortgages, we regularly help clients overcome these challenges and find solutions tailored to their circumstances.
How much deposit do first-time buyers need?
One of the most common questions first-time buyers ask is how much deposit they need to buy a home. Many lenders offer mortgages with deposits starting at 5% of the property’s value, though eligibility depends on your circumstances and lender requirements. A higher deposit can significantly affect the mortgage options available to you.
A larger deposit typically reduces the lender’s risk and may expand your choice of mortgage products and lenders. It can also help you secure more competitive interest rates, depending on your situation and market conditions.
What is loan-to-value
Lenders use a measurement known as Loan-to-Value (LTV) to assess risk. A higher deposit results in a lower LTV, which is generally viewed more positively by lenders.
Typical LTV bands include:
| LTV Band | 95% | 90% | 85% | 80% |
| Deposit | 5% | 10% | 15% | 20% |
Moving into a lower LTV bracket may give you access to a wider range of mortgage products and potentially more competitive interest rates, depending on your circumstances and market conditions.
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Costs to consider when buying your first home
While saving for a deposit is a major financial hurdle for first-time buyers, it is not the only expense to consider. Additional costs may arise depending on your situation and the property you choose.
Deposit
The deposit is typically the highest upfront cost. The required amount depends on the property’s value, the lender’s criteria, and your chosen mortgage product.
Solicitor or conveyancer fees
A solicitor or licensed conveyancer manages the legal aspects of your purchase. Fees vary based on the transaction and required services.
Survey and valuation costs
Your lender may require a mortgage valuation. You may also arrange an independent property survey for added assurance. Costs depend on the survey type.
Mortgage product fees
Some mortgage products include arrangement or product fees, which may be paid upfront or added to your mortgage, depending on the lender.
Stamp duty
You may need to pay Stamp Duty Land Tax (SDLT), depending on the property value and current government rules. Some first-time buyers may qualify for relief, subject to eligibility and prevailing regulations.
Insurance
Most lenders require building insurance before completion. Many buyers also arrange contents insurance, and some consider income protection or life insurance.
Stamp duty
You may need to pay Stamp Duty Land Tax (SDLT), depending on the property value and current government rules. Some first-time buyers may qualify for relief, subject to eligibility and prevailing regulations.
Moving costs
You should also budget for removal services, utility connections, and any immediate repairs or furnishings your new home may need.
Planning for these additional costs from the start can help you budget effectively and avoid unexpected expenses during the buying process.
Government support schemes for first-time buyers
Several government-backed schemes may assist eligible first-time buyers in purchasing a home. As scheme availability, eligibility, and rules vary, please consult the latest official guidance before applying.
Lifetime ISA (LISA)
A Lifetime ISA (LISA) enables eligible savers to build a deposit for their first home with government support. LISA savings can be used to purchase an eligible property, subject to the scheme rules and the provider’s terms.
Smart City Mortgages does not advise on Lifetime ISAs, but understanding and using the scheme could help you reach your savings goal more quickly. You can learn more about this savings account by visiting the government website and/or enquiring with banks and building societies offering such accounts.
Shared ownership
Shared Ownership allows eligible buyers to purchase a share of a property and pay rent on the remainder to a housing provider. Buyers may increase their ownership over time through staircasing. Shared Ownership may reduce the initial deposit required for some buyers, though eligibility and availability vary.
First homes scheme
The First Homes Scheme may enable eligible first-time buyers to purchase selected new-build homes at a discounted price. Eligibility depends on location, income, and local authority rules, and availability varies across England.
Eligibility criteria and local requirements vary, so it is important to understand how the scheme applies in your area. You can find more information about this scheme here.
Right to buy and right to acquire
Eligible council and housing association tenants may purchase their home through the Right to Buy or Right to Acquire schemes. Discounts, qualifying criteria, and application rules vary by scheme and individual circumstances.
You can find more information on the Right to Buy scheme here or the Right to Acquire scheme here.
Please note: Government support schemes, eligibility, and availability may change. Always consult the latest official guidance and a qualified mortgage adviser before making financial decisions.
Documents needed for a first-time buyer mortgage
Gathering the documents your lender will request before applying for a mortgage can help prevent delays and streamline the application process.
Typical documents include:
- Valid passport or driving licence
- Proof of address
- Recent bank statements
- Payslips and P60 (for employed applicants)
- HMRC SA302s, tax calculations, or company accounts (for self-employed applicants)
- Evidence of your deposit funds
What lenders assess in a first-time buyer mortgage application
In addition to your documents, lenders consider several factors when reviewing your mortgage application.
Income stability
Lenders look for reliable and sufficient income to support your mortgage repayments. The required documents depend on your employment status and income sources.
Credit history
Your credit history shows lenders how you have managed borrowing in the past. A strong credit profile can provide access to more lenders and potentially better mortgage products, though a perfect score is not required.
If you have experienced financial difficulties, our bad-credit mortgage advice service outlines the options that may still be available to you.
Affordability
Lenders review your income and regular financial commitments to determine affordability. This includes household spending, existing loans, credit card payments, and other ongoing expenses.
Deposit source
As part of anti-money laundering checks, lenders and other parties may request evidence of your deposit’s source and clarification on whether family contributions are gifts or loans.
How we help first-time buyers
Buying your first home can be overwhelming, especially if you are new to the mortgage process. At Smart City Mortgages, we offer clear, personalised guidance from your initial enquiry to completion, ensuring you make informed decisions throughout.
Personalised mortgage advice
Every first-time buyer’s situation is unique. We assess your income, deposit, credit history, employment status, and home-buying goals before recommending suitable mortgage products.
Access to a broad range of lenders
Every first-time buyer’s situation is unique. We assess your income, deposit, credit history, employment status, and home-buying goals before recommending suitable mortgage products.
Support throughout the mortgage process
From your initial consultation to receiving your mortgage offer, we’ll help you:
- Understand how much you may be able to borrow
- Obtain an Agreement in Principle (AIP)
- Compare suitable mortgage products
- Understand deposit requirements
- Gather the supporting documents required by your lender
- Submit and manage your mortgage application
- Communicate with lenders, solicitors or conveyancers, and estate agents throughout the transaction
Support until completion
Our support continues after your mortgage application is submitted. We coordinate with all parties involved, answer questions, resolve issues, and ensure your purchase progresses smoothly until completion.
I’m extremely grateful that our conveyors put us in contact with Smart City Mortgages. We have sorted our mortgage and various insurances through them, receiving honest and helpful guidance and in-depth knowledge throughout each process. Every one of my queries was met with clear explanation and patience, every step of the way, while I got my head around the complexities of first-time buying. Thank you for your hard working. We will be lifelong customers!
Why choose Smart City Mortgages?
Selecting a mortgage broker involves more than finding the right product. You need clear advice, ongoing support, and assurance that you are working with a trusted, regulated firm.
FCA-authorised mortgage broker
Smart City Mortgages, a trading name of Smart City Group Ltd, is authorised and regulated by the Financial Conduct Authority (FCA). We provide mortgage advice that meets FCA standards, ensuring you receive professional, regulated guidance throughout the process.
Clear and transparent advice
Buying your first home often involves unfamiliar terms and complex decisions. Our advisers explain your options clearly, helping you understand available mortgage products, lender requirements, and associated costs before you decide. All fees are outlined in advance.
Personal support throughout your journey
From your initial enquiry to completion, we answer your questions, coordinate with lenders and solicitors, and help keep your purchase on track. Our goal is to make the mortgage process straightforward and stress-free.
Fast and convenient service
We combine expert mortgage advice with digital tools to streamline your application. You can contact our advisers by phone, email, WhatsApp, or other convenient channels, and use our online tools, including mortgage calculators.
First-Time Buyer Mortgage FAQs
Many lenders offer first-time buyer mortgages with a minimum deposit of 5% of the property’s value. The exact amount required will depend on the lender, the mortgage product, and your personal circumstances.
Yes, some lenders offer mortgages with a 5% deposit. Eligibility depends on affordability, credit history, and the lender’s requirements.
An Agreement in Principle (AIP) indicates how much a lender may be willing to lend based on an initial review of your finances. It is not a formal mortgage offer and does not guarantee approval.
No. Before making a formal mortgage offer, lenders will conduct a full assessment, review your documents, perform credit and affordability checks, and arrange a property valuation.
Student loans do not automatically prevent you from getting a mortgage. Lenders will consider your monthly student loan repayments when assessing affordability.
Yes. Many first-time buyers receive financial support from family in the form of a gifted deposit. Lenders typically require a gifted deposit letter and evidence of the source of the funds.
Yes, many self-employed applicants obtain first-time buyer mortgages. You’ll usually need to provide extra income documentation, such as HMRC SA302s, tax calculations, or company accounts. Learn more about our self-employed mortgage advice service.
You may still be able to obtain a mortgage with a poor credit history, though available options will depend on your circumstances and the lender’s criteria. Read more about our bad credit mortgage advice service.
The time to process a mortgage application varies based on the lender, the complexity of your situation, how quickly you provide documents, and the property valuation process.
Yes. Purchasing a property typically requires a solicitor or licensed conveyancer to handle the legal work for transferring ownership and completing the transaction.
Start your homeownership journey today
If you’re planning to buy your first home, Smart City Mortgages can help you understand your options and move forward with confidence. Speak to one of our advisers today and discover how we can help you secure your first mortgage.
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