What is a first-time buyer?
A first-time buyer is someone who is purchasing a property for the first time and has not owned a home before. This includes people who have never bought a property or those who may have previously only rented.

 

Do first-time buyers get a discount on Stamp Duty?
Yes, first-time buyers in the UK can benefit from a Stamp Duty relief. As of 2024, if the purchase price is up to £425,000, you will not pay any Stamp Duty. For properties costing between £425,001 and £625,000, you'll pay Stamp Duty on the amount above £425,000. Properties over £625,000 do not qualify for the first-time buyer relief.

 

How much deposit do I need as a first-time buyer?
Typically, first-time buyers need a deposit of at least 5% of the property price, though a larger deposit (10% or more) may give you access to better mortgage deals. The amount required can vary depending on the lender and the property price

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What is a mortgage in principle, and do I need one?
A mortgage in principle (also called an agreement in principle) is an initial indication from a lender that they would be willing to lend you a certain amount based on your financial situation. While it's not a guarantee, having one can help you understand how much you can borrow and show sellers you're serious about buying.

What government schemes are available for first-time buyers?
There are several government schemes designed to help first-time buyers, including:
   • Help to Buy: A government-backed equity loan that helps you buy a new-build home with a 5% deposit.
   • Shared Ownership: Allows you to buy a share of a property and rent the remaining share, which can be a more affordable option.
   • Lifetime ISA: A savings account that gives you a government bonus of 25% on savings up to £4,000 a year, which can be used            for buying your first home.
   • First Homes Scheme: Offers new homes at a discount of at least 30% for first-time buyers who meet certain criteria.

What is the process of buying a home as a first-time buyer?
The process generally involves several key steps:

• Assess your finances – Check your credit score and save for a deposit.

• Get a mortgage agreement in principle – This will give you an idea of how much you can borrow.

• Find a property – Start searching for homes within your budget.

• Make an offer – Once you find a property, make an offer.

• Apply for a mortgage – If your offer is accepted, apply for a formal mortgage.

• Get a survey and legal checks done – A survey will assess the property's condition, and a solicitor will handle the legal side.

• Exchange contracts – Once everything is in place, you sign the contracts and pay a deposit.

• Completion – You’ll pay the remaining amount, and the property is officially yours.

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How much can I borrow as a first-time buyer?
How much you can borrow depends on your income, outgoings, and the lender’s criteria. In general, lenders offer around 4 to 4.5 times your annual income. They will also consider your credit score, employment status, and other financial commitments.

What is the difference between a fixed-rate and variable-rate mortgage?
A fixed-rate mortgage means your monthly payments will stay the same for a set period (usually 2 to 5 years). A variable-rate mortgage means your payments can change, as the interest rate may go up or down depending on the market.

What additional costs should I budget for as a first-time buyer?
In addition to the purchase price of the home, you should budget for:

• Stamp Duty (if applicable)

• Mortgage arrangement fees (if charged by the lender)

•  Valuation and survey costs

• Legal fees (paid to your solicitor)

• Removal costs and home insurance

• Ongoing costs like utility bills and council tax

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Can I buy a home if I have bad credit?
It is possible to get a mortgage with bad credit, but it may be more challenging. Some lenders specialize in offering mortgages to people with less-than-perfect credit, but you may face higher interest rates. A larger deposit can improve your chances of approval.

What is a survey, and do I need one?
A survey is an inspection of the property to assess its condition. While not legally required, it is highly recommended to protect yourself from any potential issues that could be costly to fix. A Homebuyer’s Report or a Building Survey is typically used for this purpose.
 

How long does it take to buy a house?
The entire process from making an offer to completing the purchase can take anywhere from 2 to 3 months, but it can vary. If there are delays with surveys, legal work, or mortgage approval, it could take longer. You can get a copy of our conveyancing guide here.

Can I buy a property with someone else?

Yes, many first-time buyers choose to buy a property together with a partner, family member, or friend. In this case, both parties would typically be responsible for the mortgage repayments.

Do I need a solicitor to buy a house?
Yes, you will need a solicitor or conveyancer to handle the legal aspects of buying a property, including conducting property searches, managing contracts, and registering your ownership with the Land Registry.

What happens if my mortgage application is rejected?
If your mortgage application is rejected, it's important to find out why. It could be due to credit issues, insufficient income, or not meeting the lender's criteria. You can work on improving your credit score or consider applying with a different lender or using a mortgage broker to find a suitable option.

Can I buy a home with a part-time or zero-hours contract?
Yes, it’s possible to buy a home with a part-time or zero-hours contract, but lenders may require proof of stable income over a period of time. A mortgage broker can help you find the right lender for your situation.

What is the minimum credit score needed to get a mortgage?
While the minimum credit score can vary by lender, a score of around 600-650 is often considered acceptable for many mortgage providers. A higher score typically helps secure better rates, its important not to focus too much on the score as there are lender who don't use this score and they will manually underwrite your application, this allows for those little blips you may have on your credit report.

Do I need to be employed to get a mortgage?
You don't necessarily need to be employed to get a mortgage, but lenders will look at your overall income and financial stability. Self-employed individuals can still apply, but may need to provide additional documentation such as tax returns or proof of income over the past few years.

Can I still buy a house if I am a student or recent graduate?
As a student or recent graduate, it may be more challenging to secure a mortgage, but it is possible if you have a stable income, a good credit history, and can afford a deposit. Some lenders may consider graduates in specific employment sectors with higher earning potential.