First-Time Buyer Mortgages in 2025: Everything You Need to Know Before Applying

Buying your first home is an exciting milestone, but navigating the mortgage process can feel overwhelming. With the UK mortgage market constantly evolving, it’s important to stay updated on the latest options and requirements. In this guide, we’ll walk you through everything you need to know about first-time buyer mortgages in 2025.

What Is a First-Time Buyer Mortgage?

A first-time buyer mortgage is designed for individuals purchasing their first home. These mortgages often come with special incentives, such as lower deposit requirements, cashback offers, and government schemes to help first-time buyers get on the property ladder.

How Much Deposit Do You Need in 2025?

In 2025, most lenders still require a minimum of 5-10% deposit, but the higher your deposit, the better mortgage deals you’ll access. For instance:

• 5% deposit: Limited mortgage options, often with higher interest rates.
• 10-15% deposit: More competitive rates and greater loan choices.
• 20%+ deposit: Access to the best interest rates and lower monthly repayments.

Government Schemes for First-Time Buyers in 2025

The UK government continues to support first-time buyers with various schemes:

• First Homes Scheme: Offers a 30-50% discount on new-build homes for eligible buyers.
• Shared Ownership: Allows you to buy a percentage of a property (usually 25-75%) and pay rent on the rest.
• Lifetime ISA (LISA): Helps you save for a deposit with a 25% government bonus on contributions up to £4,000 per year.

How Much Can You Borrow?

Your borrowing power depends on:

• Your income – lenders typically offer 4-4.5 times your salary.
• Your credit score – a higher score means better mortgage deals.
• Existing debts – lenders assess your debt-to-income ratio.
• Employment type – full-time employees usually have an easier process than self-employed applicants.

Steps to Get a First-Time Buyer Mortgage

1. Check your credit score and improve it if needed.
2. Save for a deposit (the larger, the better).
3. Get a mortgage agreement in principle (AIP) before house hunting.
4. Compare mortgage deals or use a mortgage broker.
5. Apply for the mortgage with your chosen lender.
6. Complete the home-buying process with a solicitor and mortgage approval.

Final Thoughts

Securing a first-time buyer mortgage in 2025 requires preparation, but with government support and careful planning, homeownership is more accessible than ever. Speak to a mortgage broker to explore your best options.