First time buyers
We are here to handhold throughout the whole journey of getting a first time buyer mortgage - from helping you set a budget, organising your DIP and then guiding you through the steps involved until you are the owner of your new home.
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FIRST TIME MORTGAGES FROM MORTGAGE LIGHT
First time buyer mortgage advisers in Milton Keynes covering the whole and across the UK.
Buying your first home is very exciting but also can seem a little bit daunting.
Whether you’re just starting out or already have a property in mind, we can help. We’ll talk you through the mortgage options available and research the market on your behalf – including access to exclusive deals you might not find elsewhere.
Below, we’ve shared some helpful information about mortgages for first-time buyers. And if you’d like tailored advice, just give us a call or pop in to speak with our Milton Keynes team.
Mortgages for first time buyers
The amount that a lender will lend to you very much depends on your individual circumstances and the different lenders’ affordability criteria.
Lenders assess what you can borrow based on the number of people applying for the mortgage. They take into consideration your income and outgoings, as well as any existing liabilities such as loans, credit cards, and other commitments.
That’s why it really helps to have a mortgage broker on your side – they know which lenders are most likely to say yes and can save you a lot of stress along the way.
HOMEOWNERSHIP FOR EVERYONE
Ways first time buyers are getting on the ladder
As a first-time buyer, there are a number of mortgage products designed to help make homeownership more accessible - particularly if you’re struggling to build up a large deposit.
01.
Deposit Hack Options
Zero deposit
Low deposit mortgages
Gifted deposits
Builder gifted deposits
Loan as deposit
Equitable charge deposit
Landlord discounts
Saving a deposit can be tough. Some lenders now offer 100% mortgages, meaning you could buy a home with no deposit at all! If you’ve been renting for at least 12 months and have a good credit history, this might be your shortcut onto the ladder. Your monthly mortgage payments will need to be similar to your current rental payments [Get your credit file for free here Get Mortgage Ready]
Zero Deposit
Struggling to save a big deposit? Some lenders accept just 2.5% down, and others offer fixed deposits as low as £5,000. These options make buying your first home more achievable, even if a traditional deposit feels out of reach. For some products you’ll need to have indefinite leave to remain or settled status, check this with a broker.
Low Deposit Mortgages
Need extra help with your deposit? A gifted deposit is money family or friends give you with no need to pay it back. Lenders usually ask for a letter to confirm it’s a gift. It’s a simple way to boost your deposit without borrowing more.
Gifted Deposit
Buying a new build? Some developers have incentives, we can help structure these to enhance your deposit and help with contribution towards your stamp duty - you may not need as much as you think!
Builder Gifted Deposits
Did you know you can use a personal loan for your deposit? One lender offers this option, it helps boost what you can borrow but adds extra monthly payments. Lenders will check you can manage both the loan and your mortgage, so it’s important to plan carefully.
Using a loan for your deposit
Got a parent with equity in their home? A second charge loan lets them tap into it to help with your deposit. It’s a smart way for families to support first-time buyers without needing savings upfront.
Equitable charge deposit
Landlord discounts
Is your landlord selling the place you rent? If they’re happy to give you a discount, we can use it as your deposit. It’s called a concessionary purchase - a smart way to buy with little upfront savings.
02.
Stretching your affordability
Using a joint borrower, sole proprietor
Higher income multiples
Benefit income
Lodgers income
Want to borrow more? Bring in a family member or friend as a joint borrower. Their income boosts your mortgage power, but they don’t get ownership rights. It’s a smart way to increase what you can borrow.
Using a joint borrower, sole proprietor
Need to borrow more? Some lenders now offer up to six times your income. That’s a big jump from traditional limits, perfect if you’ve got strong finances but haven’t been able to borrow enough before.
Higher income multiples
Want to borrow more? Lenders can include some of your benefit income alongside your employed income. This extra boost helps increase how much you can borrow and get closer to owning your home.
Benefit income
Lodgers income
If you have a lodger, some lenders may allow you to use part of the rental income to boost your affordability! Not all lenders accept this, so it’s best to check or get advice from a broker.
03.
Buying Schemes
Shared ownership
Right to buy
First Home Scheme
Want to get on the property ladder but have a lower income? Shared ownership lets you buy part of a home and pay rent on the rest, making it easier to get started. Here’s how:
Buy a Share, Start Small
You can buy a share of a property, usually between 20% and 50%. This means your deposit only covers that smaller share, so you don’t need as much saved upfront. You share is assessed by the Housing Association and they will maximise your share based on financial assessment.
Pay Rent on the Rest
You’ll pay rent on the part of the home you don’t own.
Increase Your Share Over Time
You can buy additional shares bit by bit until you own the whole home. It’s a flexible, step-by-step way to move from part-owner to full homeowner.
Shared ownership
If you have a council house, have you looked into the Right to Buy option? The discount you receive can act as your deposit, which means you may not need to save up as much upfront. Depending on how long you’ve lived in the property, the discount could be significant, and some lenders will accept it in place of a cash deposit - making homeownership more achievable.
Right to buy
First Home Scheme
The First Homes scheme is a government-backed option to help first-time buyers get on the property ladder. It offers new-build homes at a minimum 30% discount (up to 50% in some areas), and the discount stays with the property when it’s sold.
Key points:
- For first-time buyers with income up to £80k (£90k in London).
- Price caps: £250k outside London, £420k in London.
- Needs at least a 5% deposit and a mortgage covering 50%+ of the price.
- Some councils may add extra rules, like local connection or key worker status.
The scheme makes new-build homes more affordable and can be a great first step onto the property ladder.
HOMEOWNERSHIP FOR EVERYONE
10 ways first time buyers are getting on the property ladder
As a first-time buyer, there are a number of mortgage products designed to help make homeownership more accessible - particularly if you’re struggling to build up a large deposit.
03
CASHBACK MORTGAGES
A fixed sum back upon completion to help with initial costs - normally linked to new build homes.
04
SHARED OWNERSHIP
Where you buy a share of a property and pay rent on the remainder – with the option to purchase more shares over time.
05
BUILDER & DEVELOPER INCENTIVES
Often offered on new-builds to reduce your upfront costs - there are often ways to work directly with the developer to tailor the deal and explore additional mortgage options.
06
Joint borrower, sole proprietor mortgages
Sometimes called “income booster” - allowing a parent or family member to support your income without being named on the property
07
ZERO DEPOSIT (100%) MORTGAGES
Available in specific circumstances – such as where you've been renting for a period of time and can show a consistent payment record. These are subject to stricter eligibility criteria and affordability checks.
HOMEOWNERSHIP FOR EVERYONE.
10 ways first time buyers are getting on the property ladder
As a first-time buyer, there are a number of mortgage products designed to help make homeownership more accessible - particularly if you’re struggling to build up a large deposit.
Low deposit mortgages
Where some lenders will accept deposits as low as 5%, depending on your credit profile and income.
Higher income multiples
Available to applicants with strong rental histories, a high salary, or professional qualifications, often more accessible when you have a larger deposit
Cashback mortgages
A fixed sum back upon completion to help with initial costs - normally linked to new build homes.
Shared ownership
Where you buy a share of a property and pay rent on the remainder – with the option to purchase more shares over time.
Builder or developer incentives
Often offered on new-builds to reduce your upfront costs - there are often ways to work directly with the developer to tailor the deal and explore additional mortgage options.
Joint borrower, sole proprietor mortgages
Sometimes called “income booster” - allowing a parent or family member to support your income without being named on the property
Zero deposit (100%) mortgages
Available in specific circumstances – such as where you've been renting for a period of time and can show a consistent payment record. These are subject to stricter eligibility criteria and affordability checks.
Looking to get more information on your first mortgage?
YOUR QUESTIONS, ANSWERED.
What are my costs?
When you're buying your first home, it’s important to factor in the extra costs that come alongside your deposit and mortgage. These can vary depending on your circumstances and the type of property you're buying, but here are the main ones to be aware of:
1
Solicitor or conveyancing fees
These cover the legal work needed to buy your home. Costs can vary depending on the property and provider, but we’ll help you understand what’s typical - generally you can expect anywhere between £1750 - £2500.
2
Stamp Duty
This is a government tax on property purchases. First-time buyers pay a reduced rate, and in some cases may not have to pay anything at all. The amount you pay depends on the property price. You can find the most up-to-date information and calculator here and on the official gov.uk website.
3
Valuation and survey costs
Your lender will usually carry out a basic valuation to confirm the property is worth what you're paying. More often than not, this is covered by the lender, but it's still something to be aware of. You may also choose to pay for a more detailed survey for your own peace of mind.
4
Mortgage product / arrangement fees / broker fees
Some lenders charge these upfront, others allow them to be added to the loan. We’ll explain which approach works best for you and work out which mortgage product is the best option taking in all costs . You can view our fees on our IDD document.
By speaking with us early on, we can help you plan for all of these costs so nothing comes as a surprise later in the process.
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Frequently asked questions
Got a question? It might be answered here. You can also head over to our FAQ page to read more of our frequently asked questions.
How do I improve my chances of mortgage approval as a first-time buyer?
Check and improve your credit score, pay down debts, avoid taking on new credit, get some funds together, gather proof of income and spending habits, and speak to a mortgage adviser for lender-specific guidance.
What is an AIP, DIP, MIP and do I need one?
These all mean the same thing: Agreement in Principle, Decision in Principle, or Mortgage in Principle. It’s a document from a lender showing how much they might be willing to lend you, based on a credit check (this could be hard or soft depending on the lender). It’s useful when house-hunting and making offers. Get you free credit report here.
Can I use gifted deposit money from family?
Yes, most lenders accept gifted deposits, usually from close family. The person gifting the money must declare it’s a gift (not a loan) and confirm they have no legal claim to the property.
What are the quick hacks to buying?
Get mortgage-ready early, use a broker, have your documents ready, get an AIP before viewing properties, act quickly when you find the right home, and use a recommended solicitor to avoid delays.
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