Introduction
Buying your first home is exciting — but the mortgage process can feel confusing. As a first-time buyer in 2025, you’ll want to be aware of the current market, government schemes, and the details lenders care about. In this post, we’ll guide you through what you need to know to get your first mortgage with confidence.
What makes a first-time buyer mortgage different
Lenders treat first-time buyers differently because there’s no existing mortgage to compare against. They’ll look more closely at your credit history, income stability, and affordability. You may also qualify for schemes or incentives that don’t apply to existing homeowners.
Government schemes & incentives
- Help to Buy / Equity Loan: If still available in your region, this lets you borrow part of the cost (interest-free for some years).
- Shared Ownership: You buy part of a home and rent the rest.
- First Homes scheme: Discounted homes for local buyers.
Check which schemes apply in England, Scotland, Wales, or Northern Ireland.
Deposit & LTV requirements
Often, first-time buyers need at least 5 % to 10 % deposit, meaning up to 95 % LTV (loan-to-value). But many lenders will want more security, so a 5-10 % deposit plus eligibility is crucial.
Income & affordability checks
Lenders will examine:
- Your income (salary, bonuses)
- Outgoings (bills, existing debt)
- Credit history
- Future rate stress testing (can you still pay if interest rates rise?)
Tips to improve your application
- Reduce personal debt (credit cards, loans)
- Check your credit score & fix errors
- Save for a larger deposit
- Lock in a better rate with a mortgage broker
Common pitfalls to avoid
- Ignoring hidden costs (legal fees, stamp duty)
- Overextending your budget
- Forgetting maintenance / insurance costs
- Not getting mortgage protection / insurance
Conclusion & next steps
Getting your first mortgage is a big step, but being well-prepared makes all the difference. If you’d like help exploring your options, our advisors at Mortgage Bazaar are here to guide you — reach out for a free consultation.