Mortgage Advice for First-Time Buyers

How much deposit do first-time buyers need for a mortgage?

It usually starts at 5% of the property price. If you’re buying a house for £200,000, you’re typically looking at a £10,000 deposit as the absolute minimum. That’s the typical entry point for most first-time buyer mortgages.

Most lenders offer better deals if you can stretch a bit further – so with 5% you can get on the property ladder, but interest rates are quite high. If you can go to 10%, things usually become more affordable and you’ll have a larger choice of lenders.

At 15% and 20%, you’re in a much stronger position. You get better rates and more choice. Obviously, because you’re putting in a higher deposit, you potentially have a higher chance of approval, too. In reality, a lot of first-time buyers aim for between 5% and 10%, but some try to push towards 15% and 20%.

This doesn’t take into account some schemes that are available as we’re speaking today – there’s a Track Record mortgage with zero deposit, and another with a minimum deposit of £10,000. However, these schemes can change at any time [information correct at the time of recording in May 2026].

How much can I borrow as a first-time buyer?

Typically, around 4.5 times your annual income is a rough starting point. If you’re earning £40,000 a year, you might be looking at borrowing somewhere in the region of £180,000.

But it’s not a fixed rule – more of a guideline.

Lenders don’t just look at your salary in isolation. They also look at your monthly spending, existing debts like loans and credit cards, your credit history, your deposit and whether you have any children or childcare costs. A lot goes into finding out exactly what you can borrow.

Is it better to get a mortgage as a first-time buyer from a bank or a mortgage advisor?

It’s down to the individual. If you go directly to the bank, you’re dealing with one lender, which can work if your situation is straightforward: you have a good credit score, stable income and decent deposit.

But that bank will only show you their products. If there’s a better deal or a more suitable lender out there, you won’t see it unless you check. If you do go through a mortgage advisor, we look across multiple lenders and match you with options based on your circumstances.

That can be more helpful if things aren’t straightforward – if you’ve got a lower deposit, you’re self-employed or you have a patchy credit history.

Going to a bank is like going to one shop and buying what’s on the shelf. A mortgage advisor helps you to look at lots of shops.

You’ve demonstrated how a mortgage broker can help. Is there anything else you’d like to add?

I do suggest speaking to a mortgage broker if you’re a first-time buyer. Tap into our expertise and we’ll guide you in the right direction to get your first mortgage.

Key Takeaways:

• A fixed-rate mortgage provides certainty for monthly payments, simplifying budgeting, while variable or tracker mortgages offer flexibility but are less predictable.
• While not required, a mortgage advisor can compare products across multiple lenders, which is particularly beneficial if your financial situation is complex (e.g., lower deposit, self-employed, or patchy credit history).
• Help is available to first-time buyers through schemes like the Lifetime ISA, where the government adds a 25% bonus on up to £4,000 saved annually, along with shared ownership options and stamp duty relief.
• The minimum deposit generally starts at 5% of the property price, but increasing your deposit to 10%, 15% or 20% can secure better interest rates and provide a wider choice of lenders.
• The amount you can borrow is typically guided by 4.5 times your annual income; however, lenders also thoroughly assess other factors like your existing debts, monthly spending, deposit size, and childcare costs. 
  
  

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.