First-Time Buyer Mortgages: How Much Could You Borrow and What Deposit Do You Need?
Buying your first home? Understand how much deposit you may need, how much you could potentially borrow and what your mortgage repayments could look like.
Understand the mortgage process
Compare mortgage options
Get an agreement in principle
Free, no obligation initial consultation
Get started here
Buying Your First Home May Be More Achievable Than You Think
Buying your first home can feel like a distant goal when you're trying to save a deposit, work out what you can afford and understand a mortgage market you've never dealt with before.
But don't assume you need a huge deposit — or that every lender will assess your borrowing in the same way.
Depending on your circumstances, first-time buyers may have access to mortgages with smaller deposits, and some lenders offer enhanced affordability options to eligible applicants.
At Delta Mortgages, we'll help you understand your deposit, borrowing potential and realistic property budget before you start making offers.
Hear from happy people
Three Steps to Find Out If You’re Mortgage Ready
Work out your budget
Have a free, no obligation call with one of our friendly mortgage advisers. We'll help you understand your deposit, likely borrowing and the other costs of buying.
Compare mortgage options
We'll research lenders, affordability and criteria based on your circumstances.
Get an Agreement In Principle
Once you're ready, we can arrange an Agreement in Principle so you have a clearer budget when viewing properties.
Before worrying about mortgage rates or scrolling through hundreds of properties, there are two numbers worth establishing:
How much deposit can you realistically raise?
and
How much could a mortgage lender potentially lend you?
Together, they give you a much clearer idea of the property price you could consider.
Different lenders have different rules around deposits, income, affordability and financial commitments, so checking what's possible across the market can give you a very different answer from relying on a simple online estimate or checking with one bank.
Start With Two Numbers: Your Deposit and Your Borrowing Power
How Much Deposit Does a First-Time Buyer Need?
Deposit option | Deposit on a £300,000 home |
|---|---|
10% | £30,000 |
5% | £15,000 |
2% | £6,000 |
Fixed £5000 deposit | £5,000 |
100% mortgage | No traditional cash deposit |
5% deposits — widely available subject to criteria.
2% deposits — some mortgage options are available to eligible buyers.
£5,000 deposit mortgages — some products use a fixed minimum cash deposit rather than simply 5%.
100% mortgages — possible in certain circumstances, but eligibility is more restrictive and negative-equity risk is higher.
How Much Can a First-Time Buyer Borrow?
You may have heard that mortgage lenders will lend around four-and-a-half times your income. That's a useful illustration, but it isn't a universal limit.
Some lenders offer enhanced affordability options for eligible first-time buyers, which can potentially allow borrowing of 5.5 times income, or even up to 6 or 6.5 times income in certain circumstances.
That doesn't mean every first-time buyer can borrow those amounts. Lenders carry out their own affordability assessments and consider your income, existing commitments, deposit, mortgage term, credit history and other circumstances.
Two lenders looking at the same applicants can therefore produce very different borrowing figures.
Unsure on what you could borrow? Use our Mortgage Borrowing Calculator to get a quick illustration based on your gross annual income and deposit. It also shows enhanced affordability illustrations for eligible first-time buyers.
How Much Could Your Mortgage Cost Each Month?
Knowing what you may be able to borrow is only part of deciding what feels affordable.
Your monthly repayment will depend on the amount borrowed, the interest rate and the mortgage term. A longer term can reduce your contractual monthly payment, but usually means paying interest for longer.
It's therefore useful to look at both borrowing potential and monthly cost before deciding your property budget.
Not sure what figures to use? Your Delta mortgage adviser can help you establish a realistic borrowing amount and compare suitable mortgage options, so you can see what the monthly costs could look like in practice.
Could You Be Ruling Yourself Out Too Soon?
First-time buyers sometimes delay checking their options because they assume:
-
they need a 10% or 20% deposit
-
they can only borrow 4.5 times income
-
having a loan or credit card means they won't qualify
-
being self-employed makes getting a mortgage impossible
-
they need a perfect credit score, or to wait to build one up.
None of those assumptions necessarily tells you whether you can get a mortgage.
The useful first step is finding out where you actually stand.
Renting vs Buying: Why Checking Your Options Earlier Can Matter
Saving for a deposit while paying rent can be difficult because you're funding today's housing costs while trying to save for tomorrow's home.
Homeownership can also have longer-term financial implications. With a repayment mortgage, part of each payment gradually reduces the amount you owe and can build equity in your home.
Recent research has highlighted a significant long-term wealth gap between homeowners and renters, particularly approaching retirement.
That doesn't mean buying is automatically right for everyone. Property values can fall, homeowners are responsible for repairs and maintenance, and buying and selling a home involves costs.
But if your deposit or borrowing power is the only reason you've assumed buying is years away, it may be worth checking whether that assumption is right.
How Does the First-Time Buyer Mortgage Process Work?
1
Work out your budget and get an Agreement in Principle
Understand how much you may be able to borrow and what property price could be realistic.
2
Find a property and have your offer accepted
Once you know your budget, you can start viewing homes and making offers with more confidence.
3
Apply for the mortgage
We’ll confirm the most suitable mortgage option and submit the full application to the lender.
4
Valuation, underwriting and legal work
The lender assesses your application and property while your solicitor carries out the legal checks.
5
Mortgage offer
If the lender is happy with everything, they’ll issue your formal mortgage offer.
6
Exchange and completion
Contracts are exchanged, your completion date is agreed and the purchase funds are transferred.
7
Review your mortgage when the initial deal is approaching its end
We’ll help you review your options before your fixed or introductory rate comes to an end.
What Documents Do First-Time Buyers Need for a Mortgage?
Getting everything in order before you apply for your first-time buyer mortgage will make the process much smoother.
Here’s what your mortgage adviser will typically ask you to provide before they submit an application:
-
Proof of ID (passport and driving licence)
-
3 years' address history
-
If you're employed, your last 3 months payslips
-
If you're self-employed, your last 2 years' SA302 tax calculations and tax year overviews
-
3 months' bank statements
-
Evidence of your deposit (a savings statement, for example).
Lenders may have different or additional requirements. Don’t worry—we’ll guide you through every step of the mortgage application process and let you know exactly what’s needed and when.
What Does a Mortgage Lender Look At?
Mortgage lenders consider a range of factors when deciding how much they may be willing to lend and whether an application meets their criteria.
Lenders want to understand how much you earn and how reliable that income is. They may look at salary, overtime, bonuses, commission or self-employed income in different ways.
Things like loans, credit cards and car finance don’t automatically stop you getting a mortgage, but the monthly repayments can affect how much a lender is willing to lend.
Childcare, maintenance payments and other regular commitments can all be taken into account when a lender works out what feels affordable.
Lenders will look at how you’ve managed credit in the past. A few missed payments don’t always mean you’ll be declined, but they can affect which lenders are available to you. We can identify lenders whose criteria may be more suitable if you’ve had previous credit issues.
Your deposit affects how much of the property price you need to borrow. A bigger deposit can sometimes give you more mortgage options, but smaller-deposit mortgages are also available (check out our article on deposits for first-time buyers).
Spreading the mortgage over more years can reduce the monthly payment. The trade-off is that you’ll usually pay interest for longer overall.
The lender also needs to be comfortable with the property itself. Things like construction type, condition, lease length and whether it has any unusual features can all matter.
The lender will arrange a valuation of the property, which may be carried out in person or using an automated or desktop valuation, depending on the lender and property. They'll assess this as part of the mortgage application.
Every lender has its own rules and affordability calculations. That means two lenders can look at the same buyer and come up with quite different answers.
Delta’s experienced mortgage advisers have strong knowledge of lender criteria and know how to package and present applications clearly and accurately. We also have contacts at many lenders, allowing us to discuss more complex cases before an application is submitted where appropriate.
What Help Is There for First-Time Buyers?
The good news? There’s plenty of help available for first-time home buyers to make owning your first property more affordable. Here’s a quick overview of the schemes and options designed to support you:
The First Homes scheme can allow eligible first-time buyers in England to buy a qualifying property at a discount of at least 30% to market value. Income limits and local eligibility rules apply, and the property must remain subject to the First Homes rules when it is sold in future.
Shared Ownership lets you buy a share of a property and pay rent on the remaining share. It can reduce the deposit and mortgage needed, although you’ll usually also pay rent and service charges, so it’s important to consider the overall monthly cost.
Visit our Shared Ownership Mortgages page for more information.
A family member may be able to gift some or all of your deposit. The lender will usually want evidence that the money is a genuine gift rather than a loan, and your solicitor may also need to complete additional checks.
A JBSP mortgage allows another person’s income to be included on the mortgage without them becoming a legal owner of the property. This can sometimes help increase borrowing, but the supporting borrower is still jointly responsible for the mortgage payments and may need to take independent legal advice.
Some lenders offer other ways for family members to help, such as using their income, savings, or property as part of the arrangement. The structure and responsibilities vary by lender, so it’s important that everyone understands the risks and gets appropriate legal advice where required.
Can a Lifetime ISA Help With a First Home Deposit?
A Lifetime ISA can help eligible first-time buyers build a deposit more quickly.
You can currently save up to £4,000 each tax year, and the government adds a 25% bonus — up to £1,000 a year. To open one, you generally need to be aged 18 to 39, and you can continue paying in and receiving the bonus until age 50.
To use the money towards your first home without a withdrawal charge, the property must cost £450,000 or less, you must be buying with a mortgage, and at least 12 months must have passed since your first payment into the Lifetime ISA. The funds are paid to your solicitor or conveyancer for the purchase.
If you’re buying with someone else and you both have Lifetime ISAs, you can both use your savings and government bonuses provided you each meet the qualifying rules.
Lifetime ISAs have specific withdrawal rules and charges can apply if money is taken out for another reason, so check the current rules before relying on the funds for your purchase.
You can find more information about Lifetime ISAs on the Gov.UK website.
Fixed, Tracker or Variable Mortgage?
Although there are many types of mortgages available, these are some of the mortgage types first-time buyers are most likely to come across.
The right option depends on factors including cost, how much certainty you want, flexibility, early repayment charges, and how long you expect to keep the mortgage. We'll explain the trade-offs before making a recommendation.
1
Fixed Rate Mortgage
Your interest rate stays the same for an agreed period, so your monthly payment is predictable. This can make budgeting easier, although early repayment charges may apply during the fixed period.
2
Tracker Mortgage
Your interest rate moves in line with a set rate, usually the Bank of England Base Rate. Your payments can therefore go up or down during the deal.
3
Variable Rate Mortgage
The interest rate can change at the lender’s discretion, so your monthly payment may rise or fall. This can offer flexibility, as you're not usually tied in to a fixed rate, but it gives you less certainty over future payments.
Why Use Delta Mortgages as a First-Time Buyer?
Delta Mortgages is independent and whole-of-market, so we can compare mortgage options from across the market rather than being restricted to one lender.
We'll help you establish your deposit, borrowing potential and realistic property budget, arrange your Agreement in Principle and explain the options clearly.
Once you've found a home, we'll submit and manage the mortgage application, deal with lender queries, and help keep the application moving.
We'll also liaise with your estate agent and solicitor where appropriate and be here to review your mortgage again when your initial deal is approaching its end.
What Does It Cost to Buy Your First Home?
Your deposit is usually the biggest upfront cost, but it isn’t the only one to plan for.
You may also need to budget for legal work, surveys, mortgage or product fees, Stamp Duty where applicable, insurance and moving costs. The exact amount will depend on the property, mortgage and professionals you use.
It’s also sensible to keep some money back as an emergency fund rather than using every pound of your savings on the purchase.
Your deposit is the money you contribute towards the purchase price, with the mortgage covering the rest. You’ll usually need to show evidence of where the deposit is coming from during the mortgage application and legal process, and the funds will normally be sent to your solicitor before exchange or completion.
The size of your deposit affects your loan-to-value (LTV), which can influence the mortgage options and rates available to you.
If Stamp Duty is payable, your solicitor will usually calculate it and arrange payment to HMRC as part of the completion process. First-time buyer relief may reduce the amount due on qualifying purchases in England and Northern Ireland, so it’s worth checking the likely cost early when working out your overall buying budget. Different property taxes apply in Scotland and Wales.
Check out the GOV.UK website for guidance on purchases in England or Northern Ireland: Stamp Duty Land Tax: Residential property rates - GOV.UK
Your solicitor or conveyancer handles the legal work involved in buying the property, including searches, contracts and transferring ownership into your name. They’ll also usually act for your mortgage lender and receive the mortgage funds from the lender ready for completion.
Fees vary depending on the property and your circumstances, so it’s worth getting quotes from different firms before choosing who to use.
Once your offer on a property has been accepted, you’ll usually need to formally instruct your solicitor or conveyancer so they can start the legal work on your purchase.
The lender will normally arrange a mortgage valuation after you apply, but this is primarily to confirm that the property is suitable security for the mortgage.
If you want a more detailed assessment of the property’s condition, especially where the property is older and more likely to have potential issues, you can arrange your own survey once your offer has been accepted by the seller, at your own cost. This can help identify potential repairs or issues before you become legally committed to the purchase.
You can search for a local qualified RICS surveyor on the RICS website.
Some mortgages come with product, booking or valuation fees, while others have no product fee at all.
We’ll compare the overall cost rather than looking at the interest rate alone, because a lower rate with a large fee isn’t always the most cost-effective option. Where a product fee can be added to the mortgage, remember that you’ll usually pay interest on it as part of the loan.
We charge a fixed fee for our advice, based on the complexity of the work involved and the time required. We’ll explain our fees before you decide whether to proceed, so you know exactly what you’ll pay and when.
There’s no charge for an initial consultation or for arranging an Agreement in Principle.
Our role is to understand your circumstances and goals, research the mortgage market, recommend a suitable option and manage the application through to mortgage offer. We’ll also deal with lender queries and help keep the application moving along the way.
You can read more about what a mortgage adviser does in our Why use a Mortgage Broker? page.
Buildings insurance protects the structure of your home against risks such as fire, flood and storm damage. If you’re buying a freehold property, you’ll usually need suitable cover in place from exchange of contracts, when you normally become legally committed to the purchase. Your mortgage lender will also generally require adequate buildings insurance as a condition of the mortgage.
If you’re buying a leasehold property, buildings insurance is often arranged by the freeholder or management company, with the cost included within your service charge. In that case, you may not need to arrange a separate buildings insurance policy yourself. Your solicitor can confirm what applies to the property you’re buying.
It’s also worth considering contents insurance, whether you’re buying a freehold or leasehold property. This covers your personal belongings rather than the building itself and can often be arranged alongside buildings insurance or as a separate policy.
Unsure on the difference between freehold and leasehold? Take a look at our Mortgage Jargon Buster.
A mortgage is a big financial commitment. Once you take on a mortgage, it’s worth thinking about how the payments would be covered if your circumstances changed unexpectedly. Life insurance, critical illness cover and income protection can provide different types of financial support for you or your family if you die, become seriously ill, or are unable to work.
We'll review protection alongside your mortgage so you can decide whether any cover is appropriate for you before the mortgage completes.
Our Protection page explains more on this important topic.
You’ll normally start arranging removals once you have a clearer idea of your completion date. Costs can include a removals company or van hire, storage, cleaning and time off work, as well as things you may need for the new property, such as furniture, appliances, or decorating. It’s easy to focus on the deposit and forget these smaller costs, so allowing for them early can make moving day less painful.
Once you own the property, repairs and maintenance become your responsibility rather than your landlord’s. It’s therefore sensible, where possible, not to use every pound of your savings on the purchase itself. Keeping some money aside can help with unexpected costs such as a broken boiler, plumbing problem, or urgent repair after you move in.
FAQs for first-time buyers
Buying your first home comes with a lot of questions — especially when you’re trying to work out how much you need to save, what you could borrow and what happens next.
We’ve answered some of the questions first-time buyers ask us most often below.
Mortgage lenders don’t all work in the same way, so if your circumstances don’t fit neatly into one of these answers, it’s still worth asking us to check.
If you come across unfamiliar mortgage terminology along the way, we’ve also created a Mortgage Jargon Buster explaining the key terms you’re likely to encounter during your home-buying journey.
Many first-time buyers purchase with a 5% deposit, but that isn’t the only option. Depending on your circumstances, mortgages with smaller deposits (and some with no traditional cash deposit) may be available. Get in touch with us for a free, no obligation chat to find out what's possible.
A bigger deposit can sometimes give you access to a wider choice of mortgages and lower rates, but it doesn’t automatically mean you should delay buying until you’ve saved 10% or 20%. It’s worth checking with us what you qualify for, with the deposit you already have.
You can read more about this in our post about low and no deposit mortgages for First Time Buyers.
Some 100% mortgage options are available, although the eligibility criteria can be more restrictive than for mortgages with a deposit. Get in touch with us to find out if you might be eligible.
Starting with little or no equity also increases the risk of negative equity if property values fall, so it’s important to understand the trade-offs rather than choosing a mortgage purely because it requires the smallest deposit.
Around 4.5 times household income can be a useful starting illustration, but it isn’t a universal maximum. Some lenders offer enhanced affordability to eligible first-time buyers, potentially allowing higher multiples of income of up to
5 and a half, 6, or even 6 and a half times.
Your actual borrowing will depend on the lender’s affordability assessment and factors such as your income, existing commitments, deposit, mortgage term and credit history. This is why two lenders can look at the same applicants and produce quite different figures.
You can use our Mortgage Borrowing Calculator for a quick illustration, or speak to us for a free personalised affordability assessment.
Yes; having existing borrowing doesn’t automatically stop you getting a mortgage.
Lenders will usually take the monthly repayments into account when assessing affordability, so your commitments can affect how much you’re able to borrow. The impact varies between lenders and will depend on things such as the balances, monthly payments, and your overall income.
It can be worth checking your affordability with us before paying debts off specifically for a mortgage, as the effect may not always be what you expect.
No. There isn’t one universal credit score that every mortgage lender uses. Lenders look at your wider credit history and apply their own criteria, so a lower score or previous credit issue doesn’t automatically mean you can’t get a mortgage.
If you’re planning to apply, there are a few sensible things you can do beforehand:
-
Check your credit report and make sure the information recorded is accurate. Your Delta adviser can review your report with you and provide guidance if you’re unsure about anything. CheckMyFile brings together information from the three main UK credit reference agencies and is our preferred report to review because it’s easy to read, although we can look at any credit report you send us.
-
Make your payments on time. Setting up Direct Debits for regular repayments can help reduce the risk of accidentally missing or making a late payment.
-
Avoid making lots of new credit applications in a short period. Multiple recent credit searches or newly opened accounts may affect how a lender views your application.
-
Be cautious with Buy Now Pay Later services such as Klarna, Clearpay or PayPal Pay Later. These commitments may appear on your credit report as a hard search and can also be taken into account when a lender assesses affordability. Taking on several new agreements shortly before applying for a mortgage could therefore affect your options, even if the individual amounts are relatively small.
-
Keep credit-card balances manageable and avoid regularly using most or all of your available limit. Never exceed your agreed credit limit.
-
Make sure your address details are consistent across your credit report, bank accounts, and electoral register.
If there’s something on your credit file you’re worried about, please tell us before we apply for your mortgage. We can consider which lenders’ criteria may be more suitable for your circumstances, rather than making unnecessary applications.
-
Yes. Being self-employed doesn’t prevent you from getting a first-time buyer mortgage, but lenders may assess your income differently depending on how your business is structured, and how long you’ve been trading.
For example, they may look at salary and dividends, company profits or sole-trader income. Different lenders can interpret the same accounts differently, which can result in different borrowing figures.
A Delta mortgage adviser can compare lender criteria and affordability based on your circumstances.
Yes. Help doesn’t have to mean simply giving you the whole deposit.
A family member may be able to provide a gifted deposit (which can be alongside your own savings), join the mortgage without owning the property through a Joint Borrower Sole Proprietor (JBSP) arrangement, or help through certain family-backed mortgage options involving income, savings or property.
The responsibilities are different depending on how the arrangement works, so family members may need independent legal advice before proceeding.
The exact definition can vary depending on the mortgage product or scheme.
To qualify for First-Time Buyers’ Stamp Duty Land Tax relief in England and Northern Ireland, you and anyone buying with you must not previously have owned an interest in a residential property anywhere in the world, and you must intend to occupy the property as your main home.
If you’ve owned property previously, inherited a property, or are buying with someone who has owned before, tell us so we can check how this affects the mortgage and any first-time buyer benefits.
It’s usually useful to get an Agreement in Principle (AIP) before you start making offers on a property you want to buy.
It gives you an indication of how much a particular lender may be prepared to lend and can help demonstrate to an estate agent that you’ve considered how the purchase will be financed. This could potentially make your offer look more appealing to the seller over a rival bidder without an AIP.
It isn’t a mortgage offer or guarantee of lending, though. The lender will still need to assess the full application and the property once you’ve had an offer accepted.
If you’re buying in England or Northern Ireland and qualify for First-Time Buyers’ Relief, you currently pay no Stamp Duty Land Tax on the first £300,000 and 5% on the portion between £300,001 and £500,000.
If the property costs more than £500,000, First-Time Buyers’ Relief isn’t available and the normal residential rates apply.
Your solicitor will normally calculate any Stamp Duty due and deal with the return as part of the purchase.
Thresholds and amounts are correct at the time of writing - check the GOV.UK website for more information. Different property taxes apply in Scotland and Wales.
A larger deposit can reduce the percentage of the property you need to borrow, which may give you access to a wider choice of mortgages or lower rates.
But bigger isn’t automatically better if it means using all your savings or delaying a purchase unnecessarily. It’s worth looking at the mortgage options available at different deposit levels and keeping enough money aside for buying costs and unexpected expenses after you move.
There isn’t one set timescale. Once your full application is submitted, the lender needs to assess your circumstances, value the property and complete its underwriting before issuing a mortgage offer.
Straightforward applications can move relatively quickly, while cases involving additional income checks, unusual properties, or further information can take longer.
We’ll manage the mortgage application, respond to lender queries and help keep things moving while your solicitor deals with the legal side of the purchase.
Potentially, but you need to be very careful with the timescales.
With a traditional property auction, you normally become legally committed as soon as the auction ends, and completion is often required within around 20 business days or 28 days, depending on the auction conditions.
That is much quicker than a normal mortgage purchase. A standard residential mortgage often still needs a valuation, underwriting, document checks, a formal mortgage offer and legal work before funds can be released. Because of that, a traditional mortgage application started after you win the auction may not complete in time to meet the auction deadline.
For example, if you win a property on 1 October and the contract requires completion within 28 days, you may need the full purchase money ready by the end of that month. If the lender needs further documents, the valuation is delayed, the property raises legal issues or the mortgage offer takes longer than expected, you could miss the contractual deadline.
That matters because, with a traditional auction, you are usually committed to the purchase once your bid is accepted and will normally have paid a substantial deposit. Failing to complete within the deadline can have serious financial consequences, so you should never assume you’ll be able to “sort the mortgage afterwards”.
A Modern Method of Auction usually gives buyers longer — often around 56 days — and is designed to be more accessible to mortgage buyers, although the exact terms and fees still need to be checked carefully.
Before bidding, we strongly recommend that you:
-
Speak to a Delta mortgage adviser first so the likely lender, borrowing amount and timescale can be checked.
-
Have a solicitor review the auction legal pack before you commit.
-
Check the property is mortgageable, particularly if it needs significant work or has unusual construction or legal issues.
-
Read the special conditions carefully to confirm the exact deposit, fees, and completion deadline.
-
Have a backup funding plan if standard mortgage finance cannot be completed within the required timescale.
Thinking about bidding at auction? Speak to us before you bid. We can help you establish whether a standard mortgage is realistic within the auction timescale, or whether a different type of finance may need to be considered.
-
Meet the Team That’s Got Your Back
At Delta Mortgages, we combine decades of experience with down-to-earth support that actually helps. No scripts. No waffle. Just friendly mortgage brokers who bring clarity, calm—and a bit of personality—to every step of your journey.
Get to know the people who’ll guide you from start to keys.
Your property could be repossessed if you do not keep up repayments on a mortgage, or any debt secured on it.
Authored by: Lauren Drake
Reviewed by: Lauren Drake
Credentials: Mortgage, Protection & Equity Release Adviser – CertCII (MP & ER)
Date last reviewed: 25 September 2026
This page has been reviewed for accuracy and relevance. Mortgage criteria, product availability and legislation can change.