Question 1

What stamp duty do first-time buyers pay in 2025?

Accepted Answer

First-time buyers in England pay no stamp duty on properties up to £300,000. On properties costing between £300,001 and £500,000, they pay 5% on the portion above £300,000. If the property costs more than £500,000, standard rates apply and no relief is given. First-time buyers in Scotland get a £2,000 discount from their LBTT bill. In Wales, there is currently no separate first-time buyer relief.

Question 2

What is the minimum deposit for a first-time buyer?

Accepted Answer

The minimum deposit accepted by most UK mortgage lenders is 5% (giving a 95% LTV mortgage). However, 5% deposit mortgages come with the highest interest rates and the smallest choice of lenders. A 10% deposit significantly improves your rate options and reduces monthly costs. A 20% or 25% deposit gives access to near best-buy rates. Government-backed schemes have historically helped those with smaller deposits.

Question 3

What schemes are available to first-time buyers in 2025?

Accepted Answer

As of 2025, the main government schemes for first-time buyers include: (1) Mortgage Guarantee Scheme — government underwrites a portion of 95% LTV mortgages, encouraging more lenders to offer them. (2) Lifetime ISA (LISA) — save up to £4,000 per year, government adds a 25% bonus (up to £1,000), which can be used towards a first home purchase. (3) First Homes Scheme — new-build homes discounted by 30–50% for first-time buyers in some areas. Check the government's website for the latest schemes as these change regularly.

Question 4

Should I use a mortgage broker as a first-time buyer?

Accepted Answer

A mortgage broker is highly recommended for first-time buyers. A whole-of-market broker can search thousands of deals from across all lenders — many of which are not available directly to the public. They can advise on the right product for your circumstances, help prepare your application, and handle the paperwork. Broker fees vary — some charge a flat fee (typically £300–£500), others earn a commission from the lender, and some offer a combination.

Question 5

How long does a mortgage application take?

Accepted Answer

A mortgage application typically takes 2–6 weeks from submission to receiving a formal mortgage offer. The actual time depends on the lender's workload, how quickly you provide documents, and any complications with the property survey or your credit file. After receiving your mortgage offer, the conveyancing process adds further time — the full process from offer accepted to completion typically takes 2–4 months.

Question 6

What documents do I need for a first-time buyer mortgage?

Accepted Answer

Lenders typically require: (1) Proof of identity — passport or driving licence. (2) Proof of address — 3 months' utility bills or bank statements. (3) Proof of income — 3–6 months' payslips and your latest P60. Self-employed applicants need 2–3 years' tax returns or accounts. (4) Bank statements — 3–6 months showing your income and spending. (5) Proof of deposit — showing the savings have been built up over time, not a recent lump sum. (6) Credit report — your broker or lender will run this, but it helps to check it yourself first.

Band	Rate	Tax
£1 – £125k	0%	£0
£125k – £250k	2%	£2,500
£250k – £925k	5%	£5,000
Total		£7,500

First-Time Buyer Mortgage Calculator UK

Step 1 — How Much Can I Borrow?

Mortgage Affordability Calculator

Step 2 — Monthly Repayments

Mortgage Repayment Calculator

Mortgage Balance Over Time

Step 3 — Stamp Duty

Stamp Duty Calculator

First-Time Buyer Guide UK 2025

The First-Time Buyer Process

Frequently Asked Questions