Credit Score Basics > Your Complete Guide to First-Time Buyer Mortgages in the UK

Your Complete Guide to First-Time Buyer Mortgages in the UK

Wollit Team2 minute read · Updated 21st July 2025

Getting your first mortgage is an exciting step towards homeownership. This guide covers everything you need to know about securing first-time buyer mortgage advice in the UK, from preparation to completion.

Your credit file plays a crucial role in determining both your eligibility and the interest rates you'll be offered. Better credit can save you thousands over your mortgage term.

Key Steps for First-Time Buyer Mortgages

Follow these essential steps to navigate the mortgage process successfully. Proper preparation, especially strengthening your credit profile, can significantly improve your mortgage terms

Step 1: Assess Your Financial Health

Check your credit score and overall financial standing before applying:

Credit score check - Most lenders require minimum scores, higher scores unlock better rates
Monthly budget review - Ensure you can afford mortgage payments plus household expenses
Debt-to-income ratio - Debt-to-income ratio - Lenders prefer a lower ratio (often below 45-50% of your income covering all debts) to show affordability.
Employment stability - Consistent income history strengthens your application

Understanding your financial position from a lender's perspective helps identify areas for improvement. Strengthening your credit profile before applying can significantly impact your mortgage terms.

Step 2: Save for a Deposit

Build your deposit whilst improving your credit:

Standard deposits - Typically 5-20% of property value
Higher deposits - Often secure better interest rates
Government schemes - Shared ownership and Mortgage Guarantee Scheme can reduce requirements
Automatic savings - Regular payments that also build credit history

Consider structured savings plans that build your deposit consistently whilst simultaneously improving your credit through regular, reported payments.

Step 3: Research Mortgage Options

Explore different mortgage types and government support:

Mortgage types:

Fixed-rate - Rate stays same for set period
Variable-rate - Rate can change with market conditions
Tracker - Follows Bank of England base rate

Government schemes:

Shared ownership - Buy percentage, rent remainder
Mortgage Guarantee Scheme - Supports 95% LTV mortgages, facilitating a 5% deposit for eligible first-time buyers and home movers.

Step 4: Check Your Eligibility

Review requirements for both lenders and government schemes:

First-time buyer status - No previous property ownership
Credit score requirements - Varies by lender; typically, higher scores (e.g., 'Good' or 'Excellent' ratings) will unlock better mortgage deals
Income requirements - Stable employment and sufficient income
Affordability tests - Lenders stress-test your finances

Strong credit profiles often unlock better terms and more favourable conditions beyond basic eligibility.

Step 5: Apply for a Mortgage

Gather documentation and choose your application route:

Required documents:

Proof of income (3 months' payslips)
Bank statements (3-6 months)
ID and proof of address
Deposit source evidence

Application options:

Direct with lenders - Compare rates yourself
Mortgage broker - Professional comparison service
Specialist lenders - For those with credit challenges (higher rates)

Step 6: Understand the Costs

Budget for expenses beyond your deposit:

Solicitor costs - Typically £1,000 to £2,700, varying based on property value, complexity, and whether it's freehold or leasehold.
Survey fees - £300-£1,500
Moving expenses - Removals, utilities, council tax

Create a comprehensive budget covering all costs to avoid surprises.

Step 7: Complete the Purchase

Work with your solicitor to finalise the legal aspects and complete your purchase. Review all terms and conditions before signing, including repayment schedules and any early repayment charges.

Final Thoughts on First-Time Buyer Mortgages

Successfully securing your first mortgage requires preparation and planning. These steps give you a clear path for this big financial commitment.

Reminder: your credit file is crucial for both getting approved and the rates you'll get. Boosting your credit before applying can save you serious cash over your mortgage term, making it super valuable for future homeowners.

For personalised advice on credit and getting mortgage-ready, consider chatting with a professional.