The First-Time Buyer’s Guide to Getting on the Property Ladder in 2025

Buying your first home is an exciting milestone, but with rising property prices and changing mortgage regulations, it can feel overwhelming. In 2025, there are still plenty of opportunities for first-time buyers, but preparation is key. This guide will take you through everything you need to know to secure your first home successfully.

Step 1: Understanding Your Budget

Before you start house-hunting, you need to understand how much you can afford. This depends on:

• Your income – Lenders typically offer between 4 to 4.5 times your salary.
• Your deposit – The larger your deposit, the better mortgage rates you’ll access.
• Your credit score – A higher score increases your chances of approval.
• Monthly expenses & debts – Lenders assess your affordability based on your outgoings.

💡 Tip: Use an online mortgage calculator to estimate how much you can borrow.

Step 2: Saving for a Deposit

The minimum deposit required in 2025 is typically 5% of the property price, but putting down 10% or more can get you better interest rates.

Ways to Save for a Deposit

• Open a Lifetime ISA (LISA) – Get a 25% government bonus on savings up to £4,000 per year.
• Consider shared ownership – Buy a percentage of a property and rent the rest.
• Check if you qualify for government home-buying schemes (more on this below).

Step 3: Government Support for First-Time Buyers

The UK government offers several schemes to help first-time buyers, including:

• First Homes Scheme – 30-50% discounts on new-build properties for eligible buyers.
• Help to Buy (Shared Ownership) – Buy 25-75% of a property and pay rent on the remainder.
• Mortgage Guarantee Scheme – Allows buyers to get 95% mortgages with just a 5% deposit.

Step 4: Mortgage Pre-Approval

Before viewing properties, get a mortgage agreement in principle (AIP). This shows sellers that you’re a serious buyer and gives you a clear budget.

Step 5: Finding the Right Home

When choosing a property, consider:
✅ Location – Is it near work, transport, and amenities?
✅ Property type – Flats, houses, or new-builds?
✅ Long-term suitability – Will it still meet your needs in 5-10 years?

Step 6: Applying for a Mortgage

Once you find the right home, you’ll need to apply for a mortgage. A mortgage broker can help you find the best deals.

Step 7: Completing the Home Purchase

Once your mortgage is approved, the final steps include:

• Conveyancing (legal work)
• Mortgage valuation
• Exchanging contracts
• Completion (getting the keys to your new home!)

🎉 Congratulations! You’re officially a homeowner!