How to get a first-time buyer mortgage

Lenders look at four main things for a first-time buyer mortgage: income, outgoings, credit history and the deposit. They want proof of steady income, bank statements showing spending, a credit file without recent serious problems and evidence of where the deposit comes from. Age, residency and the property also count.

A first-time buyer mortgage is a regulated mortgage (FCA Handbook MCOB, accessed 20 Oct 2026), so lenders must check that the loan is affordable now and if rates rise. Self-employed buyers usually need accounts or tax calculations, and contract workers need evidence of their day rate and contract history.

How much a first-time buyer can borrow depends on income, outgoings and the lender's affordability test. Lenders often cap loans at a multiple of income, and Bank of England rules limit how much lending each lender can do above four and a half times income (Bank of England, accessed 20 Oct 2026). Outgoings and debts reduce the loan.

Lenders also test whether the payment would still be affordable at a higher rate, so two buyers on the same income can be offered different amounts. A deposit does not change the income test, though it does change the price a buyer can reach and the loan-to-value band.

A quick estimate of the loan, the price and the cash needed can be worked out with the how much can I borrow as a first-time buyer calculator, which combines income, deposit and stamp duty relief.

A mortgage in principle, also called an agreement or decision in principle, is a lender's statement of how much it would be likely to lend, based on basic details and usually a credit search. It is not an offer, but estate agents and sellers often ask for one before accepting an offer on a home.

Some lenders use a soft credit search for a mortgage in principle, which does not affect the credit file, and others use a hard search. Applying for several in a short time can leave a trail of searches, so it helps to know which type each lender uses before applying.

A first-time buyer with bad credit can still get a mortgage, though the choice of lenders is narrower. Lenders look at the type, size and age of any problems, such as missed payments, defaults or county court judgments. Older and smaller problems, especially if settled, usually matter less than recent or large ones.

Checking credit files with the main agencies before applying shows what lenders will see. Registering on the electoral roll, correcting errors and keeping payments up to date can help. Buyers with adverse credit often find more options with a larger deposit, and a specialist lender may consider a case a mainstream lender would decline.

The type of property affects which lenders a first-time buyer can use. New-build homes often have lower maximum loan-to-value, especially flats, and offers may need to last longer because build dates move. Auction purchases usually need funds within a short deadline, so a standard mortgage may not complete in time.

Self-build plots are financed with self-build mortgages that release money in stages, and homes needing work may need a renovation mortgage or a lender that accepts the property's current condition. How self-build mortgages work for plots and staged release is covered in the self-build mortgages section.

The steps to a first-time buyer mortgage are: check the requirements and the budget, get a mortgage in principle, find a home and agree a price, make the full application, have the lender value the home, receive the offer, then exchange contracts and complete. A conveyancer handles the legal work alongside the lender.

The full application needs payslips or accounts, bank statements, identification and proof of deposit. The lender instructs a valuation, which is for its own purposes, and many buyers also pay for a survey. Once the offer is issued, the conveyancer finishes the searches and the buyer signs contracts, and on completion the keys are released.