Do You Count as a First-Time Buyer?

The definition is stricter than most people expect: a first-time buyer is someone who has never owned a residential property, anywhere in the world — not just in the UK. It’s not about whether you’ve had a mortgage; ownership is what counts.

The edge cases catch people out:

• Inherited a property? You’ve owned property, so for stamp duty relief you generally no longer qualify — even if you never lived in it.
• Owned abroad? Same rule: overseas ownership counts against you.
• Buying with a partner who has owned before? For stamp duty relief, all buyers must be first-time buyers — one previous owner on the purchase and the relief is lost. (Lenders, by contrast, often only need one of you to be an FTB to access their first-time-buyer products.)
• Previously owned commercial property only? Usually fine — the rules concern residential dwellings.

Note the definition can differ slightly depending on who’s asking — the taxman, a lender or a savings scheme each apply their own version — so if you’re near an edge case, it’s worth having a broker confirm your status before you rely on it.

First-Time Buyer Benefits: What You Actually Get

Being a first-time buyer isn’t just a label — it unlocks concrete financial advantages:

• Stamp duty relief. First-time buyers pay no stamp duty up to a significantly higher price threshold than other buyers, and a reduced rate above it — often worth thousands of pounds. (Thresholds are set by government and change over time, so confirm the current figures when you buy; Scotland and Wales run their own equivalent taxes with their own reliefs.)
• Dedicated schemes. Government and lender schemes — from savings bonuses to low-deposit routes — are largely reserved for first-time buyers. More in the schemes section.
• Lender competition. Lenders want first-time buyers, so many offer FTB-specific products: higher loan-to-value deals, cashback, free valuations, or flexibility on how income is assessed.
• No chain. A quieter superpower — you have nothing to sell, which makes you a more attractive buyer and can help you negotiate on price.

How Much Deposit Do You Need?

The minimum for most standard mortgages is 5% of the purchase price, and plenty of first-time buyers do buy with 5–10%. The average first-time buyer puts down more than the minimum — often helped by family — but a bigger deposit isn’t just about getting accepted:

Struggling to save a deposit at all? Options exist — very-low and no-deposit mortgages appear on the market from time to time, and family-assisted mortgages let parents use savings or property as backing without gifting cash. These niches change quickly, which is exactly the sort of thing a broker tracks day to day.

How Much Can You Borrow?

As a rough rule of thumb, lenders will lend somewhere around 4 to 4.5 times your annual income — sometimes more, sometimes less. But the multiple is only the starting point. What actually decides your number is a full affordability assessment: your income and its reliability, your outgoings, existing debts and credit commitments, dependants, and a “stress test” checking you could still pay if rates rose.

Two practical implications for first-time buyers:

• Different lenders can offer you very different amounts. Income multiples, treatment of bonuses and overtime, and rules for the self-employed vary widely — the difference between lenders can be tens of thousands of pounds.
• Your credit file matters months in advance. Register to vote, close unused credit, avoid new borrowing in the run-up, and never miss payments — small tidy-ups genuinely move the needle.

First-Time Buyer Schemes: What Help Is Available?

“What schemes can I use?” is one of the most-asked first-time buyer questions, and the honest answer is: it changes, but there’s always something. The main categories to know about:

• Savings bonuses — the Lifetime ISA adds a 25% government bonus to money you save towards a first home (within annual limits and eligibility rules), which is effectively free deposit money for planners.
• Low-deposit routes — government-backed guarantee schemes have periodically supported 95% mortgages, and lenders run their own high-LTV products for first-time buyers.
• Discounted and shared routes — schemes like First Homes (discounted new-builds for local first-time buyers) and shared ownership (buy a share, rent the rest, staircase up later) lower the entry price rather than the deposit.
• Devolved schemes — Scotland and Wales run their own first-time buyer support, separate from England’s.

Each of these deserves its own deep-dive (they’re coming to this hub), but the key point is this: schemes have eligibility rules, price caps and trade-offs, and the right one depends on your income, location and timeline. A broker will tell you in one conversation which you actually qualify for — and whether a plain 95% mortgage beats them all in your case.

Step-by-Step: How Buying Your First Home Works

The whole journey, in order — a realistic checklist from saving to keys:

1. Get your finances ready. Deposit saved (or a plan for it), credit file tidied, paperwork gathered — ID, payslips or accounts, bank statements.
2. Find out what you can borrow. Speak to a broker and get a mortgage agreement in principle (AIP) — a lender’s indication of what they’d lend you. It’s quick, usually a soft credit check, and estate agents take you far more seriously with one.
3. House-hunt and make an offer. Your budget = deposit + borrowing, minus buying costs (below). No chain behind you is a genuine negotiating card.
4. Apply for the mortgage. Once your offer is accepted, the full application goes in and the lender values the property.
5. Conveyancing. Your solicitor runs searches, checks the legal title and handles contracts. This is typically the longest stretch — a few months from offer to completion is normal.
6. Exchange and complete. Exchange makes it legally binding (this is when your deposit is committed); completion is the day the money moves and you collect the keys.

Choosing Your First Mortgage Deal

One thing worth knowing on day one: your first deal won’t be your last. When the deal period ends you’ll remortgage onto a new one — and years later, if you ever need to borrow more without giving up a good rate, options like a second-charge mortgage exist too. Buying the house is step one of an ongoing relationship with your mortgage, and each step is a chance to save money.

Frequently Asked Questions