First Time Buyers
Step Onto the Property Ladder with Confidence
Mortgage Advice for First Time Buyers
Buying your first home is an exciting milestone, but understanding mortgages, deposits, affordability and lender criteria can make the process feel complicated.
At Allisons Financial, we provide expert advice on first time buyer mortgages, helping you understand how much you may be able to borrow, what deposit you might need and which mortgage options could be suitable for your circumstances. From your initial affordability assessment through to submitting your mortgage application, we’ll be there to explain the process and help you move forward with confidence.
Whether you’ve already started viewing properties or you’re simply trying to understand what you can afford, getting advice early can help you prepare for your first home purchase and avoid unnecessary surprises later in the process.
What Are First Time Buyer Mortgages?
First time buyer mortgages are mortgage products available to people purchasing their first home. While they work in much the same way as other residential mortgages, some lenders offer products or features specifically aimed at helping first-time buyers onto the property ladder.
The mortgage available to you will depend on several factors, including your income, deposit, regular financial commitments, credit history and the property you intend to purchase. Every lender also has its own affordability calculations and lending criteria, meaning the options available can vary considerably from one person to another.
Some first-time buyers have straightforward circumstances, while others may have income that requires a little more consideration. If you’re self-employed, work as a contractor or receive income from several different sources, specialist advice on self employed mortgages, contractor mortgages, multiple income stream mortgages or mortgages with complex income may help you understand which lenders could consider your circumstances.
At Allisons Financial, we’ll take the time to understand your complete financial position before helping you explore suitable first time buyer mortgage options.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
How Much Deposit Do First Time Buyers need?
Your deposit is one of the most important parts of buying your first home. It represents the amount of the purchase price you're contributing yourself, with the remainder generally funded through your mortgage.
Some first time buyer mortgages may be available with a 5% deposit, meaning you could potentially borrow up to 95% of the property’s value, subject to lender criteria and affordability. However, the mortgage products available will depend on your individual circumstances, the property and lending conditions at the time you apply.
Building a larger deposit can potentially give you access to a wider range of mortgage options because you’ll need to borrow a smaller percentage of the property’s value. This percentage is known as your loan-to-value, or LTV. Mortgage rates and product availability can differ between LTV bands, although a larger deposit does not automatically guarantee that a particular mortgage will be suitable.
Your deposit doesn’t always have to come entirely from your own savings. Some lenders accept gifted deposits from family members, subject to their individual requirements and appropriate checks.
Before you begin seriously viewing properties, understanding your deposit and overall budget can give you a much clearer idea of the price range you should be considering.
How Much Can First Time Buyers Borrow?
There isn’t one fixed calculation that determines how much every first-time buyer can borrow.
Mortgage lenders carry out their own affordability assessments and consider factors such as your income, regular expenditure, existing credit commitments, dependants, mortgage term and credit history. The size of your deposit and the type of property you’re buying may also affect the options available.
This means two people earning the same salary could potentially receive different affordability outcomes depending on their wider circumstances.
Our mortgage affordability advice can help you understand your position before you begin your property search. By looking at your income, commitments and deposit, we can give you a clearer understanding of how lenders may assess your application and help identify suitable options.
You can also use our Affordability Calculator for an initial indication, although calculator results shouldn’t be treated as a mortgage offer or guarantee of the amount you’ll be able to borrow.
Understanding affordability early can prevent you from spending time viewing homes that sit outside a realistic budget and can make you better prepared when you find the right property.
Understanding First Time Buyer Mortgage Affordability
Being able to borrow a certain amount doesn't necessarily mean you should spend the maximum available to you.
Buying your first home introduces costs you may not have previously been responsible for. Alongside your monthly mortgage repayment, you’ll need to consider household bills, council tax, utilities, insurance and the ongoing cost of maintaining your property.
It’s therefore important to think about what feels comfortable within your monthly budget rather than focusing solely on the maximum mortgage a lender may be prepared to offer.
Your mortgage term can also influence your monthly repayments and the overall amount you repay. A longer term can reduce monthly payments, but it will generally mean paying interest for longer. Our Repayment Calculator can help you explore how different mortgage amounts, rates and terms could affect your monthly payments.
At Allisons Financial, our approach to mortgage affordability for first time buyers considers both lender criteria and your wider circumstances, helping you make a decision that reflects your plans rather than simply chasing the largest possible mortgage.
Mortgage Options for First Time Buyers
There are different types of first time buyer mortgages, and understanding how they work can help you decide which features matter most to you.
A fixed-rate mortgage provides an agreed interest rate for a set period, which means your mortgage payment relating to interest and capital will generally remain consistent during that initial fixed period. This can provide useful certainty when you’re budgeting for your first home.
Tracker mortgages typically follow a specified external interest rate, such as the Bank of England Bank Rate, plus a set margin. Your payments can therefore rise or fall when the rate being tracked changes.
Other variable-rate mortgages can also change over time according to the terms of the mortgage, meaning your monthly repayments may increase or decrease.
The headline interest rate is only one part of comparing mortgage options. Product fees, incentives, mortgage term, early repayment charges and the overall cost during the initial deal period can all influence whether a mortgage represents good value for your circumstances.
Rather than simply looking for the lowest advertised rate, we’ll help you understand the wider costs and features of suitable mortgage options so you can make an informed decision.
What Help Is Available for First Time Buyers?
Depending on your circumstances and where you're buying, there may be schemes or savings products designed to support people purchasing their first home.
For example, eligible buyers may be able to use a Lifetime ISA towards their first home purchase, subject to the applicable rules and property limits. Shared Ownership can allow eligible buyers to purchase a share of a property and usually pay rent on the remaining share, while the First Homes scheme may provide qualifying first-time buyers in England with an opportunity to purchase certain properties at a discount.
Eligibility requirements and availability vary, and government schemes can change over time. It’s therefore important to check the latest official information and understand how any scheme you’re considering would work alongside your mortgage.
Not every scheme will be right for every buyer. We can help you understand your mortgage position and how your chosen route to homeownership may affect the type of borrowing you need.
How Does the First Time Buyer Mortgage Process Work?
Buying your first property involves several stages, but understanding what happens next can make the process much less daunting.
Step 01
Understand Your
Budget
Work out your available deposit and what you may be able to borrow, helping you establish a realistic budget before beginning your property search.
Step 02
Get A Mortgage
in Principle
We’ll help you understand your options and obtain a Mortgage in Principle, giving an indication of how much you may be able to borrow.
Step 05
Property Valuation
& Lender Approval
We’ll help you prepare and submit your mortgage application, ensuring the lender receives the information and documentation required to assess your circumstances.
Step 03
Start House
Hunting
With a clearer understanding of your budget, you can begin searching for a suitable property and confidently start arranging viewings in your area.
Step 06
Exchange Contracts
& Move in
Your lender will complete its checks and, if approved, issue your mortgage offer while your solicitor completes the legal work needed to reach completion.
Step 04
Submit Your Full
Mortgage Application
Once you’ve found the right home, you can make an offer through the estate agent and, if accepted, begin moving forward with your purchase.
What Other Costs Should First Time Buyers Budget For?
Your deposit is usually the largest upfront expense when purchasing a property, but it isn't the only cost you should prepare for.
Depending on your purchase and mortgage, you may need to budget for solicitor or conveyancing fees, surveys, mortgage product or arrangement fees, valuation costs, moving expenses and insurance. Some mortgage products may include certain fees or incentives, so the exact costs will vary.
Taxes may also apply depending on the property’s price, your circumstances and which part of the UK you’re buying in. Rules and first-time-buyer reliefs can change, so it’s important to check the position applicable to your purchase rather than assuming you’ll have nothing to pay. Our Stamp Duty Calculator can provide an initial indication where relevant.
Once you’ve moved in, you’ll also become responsible for the ongoing costs of owning the property. Arranging suitable Home Insurance and considering how your mortgage would be managed if your circumstances unexpectedly changed can form an important part of preparing for homeownership.
Some buyers also choose to explore Life Assurance or Income Protection Insurance as part of their wider protection planning. The right approach will depend on your individual needs and circumstances.
Planning for these costs early means you’re less likely to face unexpected financial pressure as your purchase progresses.
Start Your First Time Buyer Journey with Confidence
Your first home is closer than you think. At Allisons Financial, we’ll guide you through every stage of the process — from your first question to getting your keys.
Book your free consultation today and discover how our friendly experts can help you secure the perfect first time buyer mortgage
Get Mortgage Quote
Why Choose Allisons Financial for First Time Buyers?
Buying your first property may be the biggest financial commitment you’ve made so far, and it’s completely normal to have questions along the way.
At Allisons Financial, our role is to make first time buyer mortgages easier to understand. We start by learning about your income, deposit, circumstances and plans before helping you explore mortgage options that could be suitable for you.
We’ll explain how affordability works, help you understand lender requirements and guide you through the mortgage application process. We’ll also explain important features, fees and considerations clearly so you understand what you’re applying for and why a particular option may be appropriate.
Our support doesn’t stop when your application is submitted. We’ll remain available throughout the mortgage process, helping you understand what happens next and answering questions as your purchase moves towards completion.
Whether your circumstances are straightforward or your income requires a more specialist approach, our aim is to make your first mortgage journey clearer, more manageable and less overwhelming.
First Time Buyers Frequently Asked Questions
How much deposit do I need for a first time buyer mortgage?
Some mortgages may be available to eligible first-time buyers with a deposit of around 5% of the property’s value, subject to affordability, lender criteria and product availability. Having a larger deposit may provide access to a wider range of mortgage options.
How much can I borrow as a first time buyer?
The amount you can borrow depends on the lender’s affordability assessment and factors including your income, expenditure, existing commitments, deposit, mortgage term and personal circumstances. There isn’t one income multiple that applies to every first-time buyer.
Can I get a first time buyer mortgage with a 5% deposit?
Potentially. Some lenders offer mortgages at up to 95% loan-to-value, meaning a 5% deposit may be sufficient in certain circumstances. Eligibility and product availability will depend on the lender, property and your financial position.
What is a Mortgage in Principle?
A Mortgage in Principle provides an initial indication of how much a lender may be willing to lend based on the information available at that stage. It isn’t a formal mortgage offer and remains subject to further checks and a full application.
Can my family help with my mortgage deposit?
Yes, some lenders accept gifted deposits from family members. The lender will normally require confirmation that the money is a genuine gift rather than an undisclosed loan, alongside any evidence or checks they require.
What credit score do I need for a first time buyer mortgage?
There isn’t a single credit score required by every mortgage lender. Lenders use their own criteria and will consider your wider credit history and financial circumstances when assessing an application.
Local Mortgage Advice for First-Time Buyers in St Helens
If you’re buying your first home in St Helens, Rainford or the surrounding areas, Allisons Financial is here to provide friendly, personalised mortgage advice from the beginning of your search through to completion. We understand that first-time buyers often have more questions than experienced homeowners because everything is new.
That’s why we take time to explain the process clearly, from understanding your initial affordability and deposit through to choosing a suitable mortgage and submitting your application. You don’t need to wait until you’ve found a property before speaking to us. Getting advice early can help you establish a realistic budget, understand what lenders may require and approach your property search with greater confidence.
Whether you’re only beginning to save or you’re ready to make an offer on your first home, speak to Allisons Financial about your first time buyer mortgage options.
