Buying your first home is one of life’s biggest milestones, but the process can feel daunting, especially when it comes to mortgages.
The good news? With the right preparation, you can save thousands of pounds before you even apply.
In this guide, we’ll break down everything you need to know about first time buyer mortgages, from deposits to government schemes, so you can start your journey with confidence.
1. Start with a Realistic Deposit Goal
Many lenders require a minimum deposit of 5–10% of the property’s value, but the more you save, the better the rates you’ll be offered. A 15–20% deposit can unlock much lower interest rates, which could save you thousands over the life of your mortgage.
Tip: Set a monthly savings goal and keep it separate in a high-interest savings account.
2. Boost Your Savings with a Lifetime ISA (LISA)
If you’re aged 18–39, the Lifetime ISA is one of the best tools available for first-time buyers. You can save up to £4,000 each year, and the government will top it up with a 25% bonus – that’s up to £1,000 free every year towards your first home.
Tip: Open a LISA as early as possible, as you’ll need to have it for at least 12 months before using it for your deposit.
3. Make Use of Schemes
There are several schemes designed to help first-time buyers get onto the property ladder:
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Shared Ownership: Buy a share of a property and pay rent on the rest, with the option to increase your share over time.
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First Homes scheme: Offers discounts of at least 30% on new-build properties for first-time buyers.
Tip: Check eligibility carefully – these schemes can significantly reduce your upfront costs.
4. Compare Mortgage Rates Before Applying
Not all mortgages are created equal. A small difference in interest rate can add up to thousands of pounds over the term of your loan. Use online comparison tools to get a rough idea, but remember that the cheapest rate isn’t always the best option. Look at fees, flexibility, and repayment terms too.
5. Work with a Mortgage Broker
While it’s possible to go directly to lenders, a mortgage broker can access deals that aren’t always available to the public. They’ll also match you with lenders who are more likely to accept your application, reducing the risk of being rejected (which can harm your credit score).
Tip: Choose a broker who is independent and covers the whole market for the best results.
Taking the time to prepare before applying for a mortgage can make all the difference. From saving smarter with a Lifetime ISA to comparing the right rates and making use of schemes, you’ll put yourself in a stronger financial position and potentially save thousands.
If you’re ready to explore your options, speak to a mortgage broker today. A little guidance now could make your first home more affordable than you think.
