Buying Your First Home in the UK

At Casa UK Mortgages, we support first-time buyers across the UK, including Nottingham, Derby, Leicester and surrounding areas, as well as clients nationwide through online consultations.

Buying your first home is a significant step. Whether you are just starting to explore your options or getting ready to make an offer, speaking with a mortgage adviser early can help you understand how much you may be able to borrow and avoid unnecessary delays.

We provide professional first-time buyer mortgage advice across the UK, supporting clients from the initial consultation through to completion. We help you understand how much you may be able to borrow, the deposit required and the steps involved in securing your mortgage.

The First-Time Buyer Mortgage Process

The steps below explain how the first-time buyer mortgage process usually works in the UK.

Why Choose Casa UK Mortgages for First-Time Buyer Advice

First-Time Buyer Mortgage Questions (FAQ)

What is considered a First-Time Buyer?

A first-time buyer is generally someone who has never owned a residential property before, either in the UK or abroad. However, the definition used by mortgage lenders may differ from the definition used for stamp duty purposes.

Some lenders will only class applicants as first-time buyers if neither applicant has ever owned a property. Other lenders may apply different criteria in certain situations, for example if one applicant has previously owned a property but the other has not.

It is also important to note that the definition used by mortgage lenders may differ from the definition used for Stamp Duty purposes. For example, a lender may consider a case under first-time buyer mortgage products, while Stamp Duty relief may not apply if one of the applicants has previously owned a property.

Because lender criteria can vary, speaking with a mortgage adviser can help clarify which options may be available based on your individual circumstances.

For Stamp Duty matters, clients should seek confirmation from their solicitor or tax adviser.

Do I count as a first-time buyer if I owned property abroad?

In most cases, if you have previously owned a residential property anywhere in the world, you would not normally be considered a first-time buyer. This applies even if the property was owned outside the UK.

However, mortgage lenders may have their own criteria, so it is always important to review your circumstances before applying for a mortgage.

For Stamp Duty purposes, buyers who have previously owned property abroad will generally not qualify for First-Time Buyer Stamp Duty relief.

Stamp Duty rules can depend on individual circumstances, so buyers should confirm their position with their solicitor or conveyancer.

How much can First-Time Buyers borrow?

Many first-time buyers are unsure how much they may be able to borrow. Mortgage lenders assess affordability based on your income, existing commitments, credit history and overall financial circumstances.

In many cases, lenders may offer around 4 to 4.5 times your annual income. However, some lenders may consider higher income multiples, sometimes 5 times income or more, depending on factors such as your earnings, employment stability, credit history and affordability assessment.

This is why speaking to a qualified and experienced mortgage adviser can be important. We review your income, deposit and financial commitments to help you understand your borrowing potential and identify lenders that may be suitable for your circumstances.

Getting an Agreement in Principle early can also help you understand your budget before starting your property search.

Sources of Acceptable Deposit

Your deposit will normally need to come from an acceptable and traceable source. Mortgage lenders will usually require evidence showing where the funds have come from as part of their anti-money laundering checks.

Common acceptable sources of deposit may include:

• Personal savings
• Gifted deposits from close family members
• Inheritance
• Sale of assets such as a vehicle or investments
• Savings held in schemes such as a Lifetime ISA or existing Help to Buy ISA
• In some cases, a gifted deposit or discount from the property seller (for example a landlord), depending on lender criteria

If the deposit is gifted, lenders will usually require a gifted deposit declaration confirming that the funds are not repayable and that the person providing the gift will not have a legal interest in the property.

Because lender requirements can vary, a mortgage adviser can help confirm whether the source of deposit is likely to be acceptable before submitting a mortgage application.

Can my family abroad gift me a deposit for a mortgage in the UK?

Yes, in many cases a mortgage deposit can be gifted by close family members, even if they live outside the UK. However, lenders will normally require evidence showing the source of the funds and confirmation that the gift does not need to be repaid.

The person providing the gift will usually need to sign a gifted deposit declaration confirming that they will have no legal interest in the property.

Because lender requirements can vary, it is important to check that the gifted deposit will be acceptable before submitting a mortgage application.

How much deposit do you need?

The deposit required will depend on your circumstances and lender criteria. While many first-time buyers assume they need a large deposit, there may be options available depending on affordability, credit history and property type.

We can review your savings position, whether a gifted deposit may be acceptable, and how different deposit levels may affect your mortgage options and monthly payments.

Many lenders allow first-time buyers to purchase with a deposit from around 5% of the property value, although the options available will depend on affordability and lender criteria.

Property and Purchase Questions

Is a survey mandatory when buying a property?

A survey is not legally mandatory, but it is strongly recommended. A survey helps identify potential structural issues or maintenance problems before you commit to purchasing the property. Different levels of surveys are available depending on the property type and condition.

What is the difference between freehold and leasehold?

With a freehold property, you own both the property and the land it stands on. With leasehold, you own the property for a fixed number of years but not the land, which is owned by a freeholder. Leasehold properties may include ground rent and service charges.

What is considered non-standard construction?

Most properties in the UK are built using brick or stone with a tiled roof. Non-standard construction refers to properties built using other materials or methods, such as concrete panels, timber frames or steel structures. Some lenders may have additional criteria for these properties.

Ready to Start Your First Home Journey?