How much deposit do I need as a first time buyer?

Some lenders will consider a deposit of around 5% of the purchase price, although the choice of lenders widens as your deposit grows. A bigger deposit can also mean lenders look at your application more favourably. We'll talk through what you have, where it's coming from and what that opens up.

Can my parents give me money towards my deposit?

Yes, many lenders accept a gifted deposit from a family member. They'll usually want a signed letter confirming it's a gift rather than a loan, and some will ask for identification and proof of funds from the person giving it. Your solicitor will also need to check where the money has come from.

Will a low credit score stop me getting a mortgage?

Not necessarily. Lenders use their own scoring rather than the number you see on a credit reference app, and each one weighs things differently. Missed payments, defaults and high card balances can matter, so it's worth telling us about anything like that on the first call so we can steer you towards lenders likely to be comfortable with it.

How much can I borrow as a first time buyer?

Lenders look at your income, your regular outgoings, any credit commitments and the size of your deposit. Many work around a multiple of income, but the figure varies a lot from one lender to another and with how your income is made up. We can give you a realistic range after a proper conversation, subject to underwriting and valuation.

Should I get a decision in principle before I start viewing?

It's usually a good idea. A decision in principle shows estate agents and sellers that a lender is likely to lend you a certain amount, which can help when you make an offer. It isn't a formal offer, and the full application still goes through underwriting and a valuation.

First Time Buyer Mortgage Broker

Buying your first home is a big step, and the mortgage part shouldn't feel like a mystery. We explain how lenders will look at your income and deposit, then find the ones whose criteria fit you.

Most first time buyers come to us with the same few questions. How much can I borrow? Is my deposit enough? What will a lender actually want to see? We answer those plainly on the first call, so you know where you stand before you fall in love with a property.

We're a mortgage and protection brokerage based in Leeds, with offices in Manchester and London, and we advise first time buyers right across the UK by phone and video. A lot of our work involves people whose income doesn't fit a simple payslip, and we're just as happy to help employed first time buyers who simply want someone to explain the process and do the legwork properly.

How lenders assess first time buyers

Every lender sets its own criteria, which is why two lenders can offer quite different amounts to the same person. Broadly, they look at three things.

Your income. Basic salary is the starting point. Some lenders will also count overtime, bonus or commission, often averaged or only partly used. If you've recently started a new job or are still on probation, some lenders are more comfortable with that than others.

Your outgoings. Lenders look at credit cards, loans, car finance, childcare and other regular commitments, because these reduce what they think you can afford each month.

Your credit history. They check how you've managed credit so far. A short history isn't usually a problem in itself, but recent missed payments can narrow your options.

Any figure we give you early on is a guide only, and all lending is subject to underwriting and valuation.

Your deposit, including gifted deposits

Your deposit is your share of the purchase price, and its size has a real effect on which lenders and products are open to you. Some lenders will consider a small deposit, while a larger one usually gives you more choice.

Many first time buyers get help from family. Lenders can generally accept a gifted deposit as long as it's a genuine gift with no expectation of repayment, and the person giving it may be asked to sign a declaration. Money from savings needs to be clearly traceable too, so it helps to keep your bank statements tidy in the months before you apply.

There are also government backed schemes from time to time. The details change, so we'll tell you what's currently available and whether it's likely to suit you when we speak.

First time buyers with self employed or company income

If you run your own business, you can still buy your first home. Lenders simply want different evidence. Sole traders are usually assessed on profit from self assessment, often over two years. Company directors are often assessed on salary and dividends, though some lenders can look at your share of the company's profit instead, which may change how much they're prepared to lend.

This is the part of the market we know best. Have a look at our pages on self employed mortgages and mortgages for company directors if that sounds like you.

What you'll usually need

Photo identification and proof of address
Your last three months' payslips and your latest P60, if you're employed
SA302s and tax year overviews, or company accounts, if you're self employed or a director
Recent bank statements showing your income and day to day spending
Evidence of your deposit, plus a gifted deposit letter if family are helping
Details of any credit commitments

We'll send you a checklist built around your own situation after the first call, so you don't gather anything you don't need.

How we work with first time buyers

A proper conversation. We spend 30 to 45 minutes understanding your income, deposit and plans, by phone or video.
Your documents, once. You upload everything through our secure portal, and we only ask once.
Research the market. We compare how lenders would assess you and explain the options in writing, in plain English.
Decision in principle. We obtain one so you can make offers with confidence.
Full application. We package your case for the underwriter and handle lender queries for you.
Offer to completion. We keep things moving with your solicitor and the lender, and review your protection so your new home is properly covered.

The initial consultation is free. If you'd like to talk it through, get in touch and we'll aim to come back to you within the hour during office hours.

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it. All lending is subject to underwriting and valuation.

First time buyer mortgages