---
title: "The Complete First-Time Buyer Mortgage Guide"
description: "The complete first-time buyer guide: deposits, 95% and 100% mortgages, JBSP and gifted deposits, concessionary purchases, Shared Ownership, First Homes, Right to Buy and every devolved scheme."
url: "https://mortgagelane.com/guides/first-time-buyer-mortgage-guide"
site: "Mortgage Lane"
collection: "guides"
date: "2026-09-11"
author: "Joseph Lane"
category: "Guides"
reviewed: "2026-10-08"
reading_time: "32 min"
byline: "Joseph Lane"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# The Complete First-Time Buyer Mortgage Guide

The complete first-time buyer guide: deposits, 95% and 100% mortgages, JBSP and gifted deposits, concessionary purchases, Shared Ownership, First Homes, Right to Buy and every devolved scheme.

The complete first-time buyer guide: deposits, 95% and 100% mortgages, JBSP and gifted deposits, concessionary purchases, Shared Ownership, First Homes, Right to Buy and every devolved scheme.

[Residential mortgage](https://mortgagelane.com/definitions?term=residential-mortgage)

Residential

A loan secured against a property that the borrower intends to occupy as a home.

[Read the full definition of Residential mortgage](https://mortgagelane.com/definitions?term=residential-mortgage)

## Expert advice on The Complete First-Time Buyer Mortgage Guide

Speak to a Mortgage Lane adviser about your options.

## In short

A first-time buyer mortgage is a residential mortgage for someone who has never owned property, and in 2026 the routes into it are wider than most buyers realise, from standard 5% deposit lending to family-backed structures, government schemes and discounted purchases, each with its own rules.

## First-time buyer mortgages in 2026

**A first-time buyer mortgage is a residential mortgage for someone who has never owned property, and in 2026 the routes into it are wider than most buyers realise, from standard 5% deposit lending to family-backed structures, government schemes and discounted purchases, each with its own rules.** The numbers behind the market explain why the routes matter: the English Housing Survey puts the average age of a first-time buyer in England at 34 ([MHCLG, 2024 to 2025](https://www.gov.uk/government/collections/english-housing-survey)). UK Finance's Regulated Mortgage Survey puts the first-time buyer loan size in England at £233,904 and the loan-to-value at 79.2% in the second quarter of 2026 ([UK Finance](https://www.ukfinance.org.uk/data-and-research/data/key-mortgage-market-data)). First-time buyers pay no Stamp Duty Land Tax up to £300,000 and claim relief on purchases up to £500,000 ([gov.uk](https://www.gov.uk/stamp-duty-land-tax)).

Two regulatory shifts have widened the door. The Bank of England has eased its limit on high loan-to-income lending. First-time buyers accounted for 54% of high loan-to-income lending volume in 2025 Q2 ([PRA CP6/26](https://www.bankofengland.co.uk/prudential-regulation/publication/2026/april/high-loan-to-income-lending-consultation-paper)), and the Financial Conduct Authority's mortgage rule review has let lenders apply their own judgement on affordability stress testing. A permanent [Mortgage Guarantee Scheme](https://www.gov.uk/government/publications/2025-mortgage-guarantee-scheme) has underpinned 95% lending since July 2025.

This guide covers who counts as a first-time buyer and why the definition matters, how much you can borrow and what changed in 2025, every deposit source lenders accept, low-deposit and no-deposit routes, family-assisted structures from gifted deposits to joint borrower sole proprietor mortgages, concessionary purchases, every government and affordable-housing scheme across England, Wales, Scotland and Northern Ireland, stamp duty, the property types that carry extra rules, and the first-time buyers who are not buying a home to live in at all.

## Who counts as a first-time buyer, and why the definition matters

**A first-time buyer is someone who has never owned a residential property, anywhere in the world, either alone or jointly, and the definition is applied by three different parties for three different purposes.** HM Revenue and Customs applies it for Stamp Duty Land Tax relief: every purchaser on a joint purchase must qualify, the property must be intended as the buyer's only or main residence, and a previous share in an inherited property or a home abroad removes the relief. Lenders apply their own version for first-time buyer products, some accepting buyers who owned property years ago or overseas. Scheme administrators, Shared Ownership, First Homes, the Lifetime ISA, apply theirs, usually the strict never-owned test.

The practical consequence: a couple where one partner once owned a flat is not a first-time buyer couple for stamp duty, may still qualify for a lender's first-time buyer range, and is excluded from First Homes. Confirming status under each definition before the purchase decides the tax, the product and the scheme.

Residential first-time buyer mortgages are regulated by the Financial Conduct Authority (FCA) under [MCOB](https://www.handbook.fca.org.uk/handbook/MCOB/), which governs affordability assessment, advice and disclosure.

## How much can a first-time buyer borrow?

**Borrowing is set by two tests. An income multiple and an affordability assessment, and the offer is the lower of the two.** Income multiples vary by lender: the Bank of England's loan-to-income limit applies to lending at 4.5 times income or more, and in Mortgage Lane's experience many residential lenders we use lend up to around 5 times gross income after allowing for outgoings, with some products for professionals and specialist cases up to 6 times (our experience, not a market rule or a promise); the affordability assessment models committed outgoings, dependants, existing credit and a stressed interest rate against net income, and can pull the loan well below the headline multiple. Our [low income mortgages](https://mortgagelane.com/mortgages/low-income-mortgages) page works through what a £22,000 salary can borrow.

**What changed in 2025.** Two regulatory settings that had capped first-time buyer borrowing moved. The Bank of England's Financial Policy Committee recommended relaxing the rule that limited lenders to 15% of new lending at 4.5 times income or above. The Prudential Regulation Authority made a modification by consent available to disapply the 15% limit as an interim measure, and is consulting on the permanent framework ([CP6/26](https://www.bankofengland.co.uk/prudential-regulation/publication/2026/april/high-loan-to-income-lending-consultation-paper)); HM Treasury said in July 2025 that the change could create up to 36,000 additional mortgages for first-time buyers over its first year ([HM Treasury, 15 July 2025](https://www.gov.uk/government/news/reeves-to-cut-financial-red-tape-to-boost-homeownership)). Separately, as part of its [mortgage rule review](https://www.fca.org.uk/firms/mortgage-rule-review), the Financial Conduct Authority has reminded lenders that its interest rate stress test rule gives them flexibility to design the test in a way that suits the customer's mortgage. Neither change removes the affordability assessment; both widen what lenders can offer within it.

**The levers a first-time buyer controls.** Term, 30- and 35-year terms are now common and some lenders offer 40, reducing the monthly payment and therefore the stressed payment, at the cost of total interest; existing credit, car finance, student loan deductions and credit cards all reduce the affordable loan; deposit, a larger deposit lowers the loan-to-value (LTV) and opens more products; and structure. The family-assisted routes below add a second income to the assessment without adding a second owner. Our page on [single person mortgages](https://mortgagelane.com/mortgages/single-person-mortgages) covers buying on one income, including a married person buying in their own name.

**Age and term.** Lenders set a maximum age at the end of the term, so the term available shortens with the borrower's age, and, on a joint borrower sole proprietor mortgage, with the age of the oldest borrower on the loan.

## Where the deposit can come from

**Lenders accept a wider range of deposit sources than most first-time buyers assume, but every source must be evidenced, and each carries its own rules.**

**Savings and investments.** Evidenced by statements showing accumulation; lump sums that appear suddenly are traced to their origin under anti-money-laundering rules.

**Lifetime ISA (LISA).** A Lifetime ISA can be opened between the ages of 18 and 39, takes up to £4,000 a year, and attracts a 25% government bonus, up to £1,000 a year, usable towards a first home costing £450,000 or less, bought at least 12 months after the first payment in. Withdrawals for any other purpose before age 60, unless the saver is terminally ill with less than 12 months to live, carry a 25% charge, which claws back the bonus and part of the saver's own money ([gov.uk](https://www.gov.uk/lifetime-isa)). *Status at 29 September 2026:* the government consulted from 22 June to 18 August 2026 on a new First Time Buyer ISA, to be offered in place of the Lifetime ISA once available, and has not yet given a launch date. Until the new ISA is available, a Lifetime ISA can still be opened, and the consultation says existing holders can keep saving into theirs under the current rules.

**Help to Buy ISA (legacy).** Closed to new savers in November 2019, but existing holders can keep paying in until 30 November 2029 and claim the 25% bonus, up to £3,000, until 1 December 2030 ([gov.uk](https://www.gov.uk/affordable-home-ownership-schemes)). The conveyancer claims the bonus once the purchase is certain, usually between exchange and completion, and adds it to the completion funds, so it cannot form the exchange deposit.

**Gifted deposits.**  [A gift from family](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) is accepted by most lenders as deposit, subject to a signed gift letter confirming the money is a gift with no repayment and no interest in the property, evidence of the donor's funds and identity for anti-money-laundering checks, and, where the gift is from outside the immediate family: the lender's specific policy, which is narrower. Gifts are not loans: a deposit that must be repaid is a loan and is assessed as one. Tax sits with the donor: a gift is a potentially exempt transfer for inheritance tax, falling outside the estate if the donor survives seven years ([gov.uk inheritance tax rules on gifts](https://www.gov.uk/inheritance-tax/gifts)).

**Inheritance and windfalls.** Accepted with the probate or source documentation.

**Right to Buy and concessionary discounts.** The discount itself can serve as the deposit, covered in their own sections below.

**Builder incentives and deposit contributions.** New-build developers commonly contribute towards the deposit or costs; lenders require the incentive to be declared on the UK Finance disclosure form and cap the proportion of price it can represent, valuing the property net of excessive incentives. Our [new builds and conversions](https://mortgagelane.com/insights/investing-in-new-builds-and-conversions) page covers the disclosure regime.

**What lenders generally will not accept.** Deposits borrowed on credit cards or personal loans, deposits from a party to the transaction (the seller, the agent), and unevidenced cash.

## Low-deposit and no-deposit routes

**A 5% deposit buys a home in 2026, and a smaller one is possible with the right structure. Each route trades deposit size for tighter criteria.**

**95% mortgages and the Mortgage Guarantee Scheme.** The government’s permanent 2025 scheme supports eligible mortgages above 90% and up to 95% loan-to-value through participating lenders. It protects the lender against part of a qualifying loss, while the borrower remains liable for the mortgage. The participating lender assesses affordability, credit and property criteria. Other lenders offer 95% products outside the scheme ([HM Treasury](https://www.gov.uk/government/publications/2025-mortgage-guarantee-scheme)).

**98% and 100% mortgages.** A small number of lenders now lend at 98% and even 100% loan-to-value to first-time buyers, most commonly on a *track record* basis: a clean history of rent and bills paid on time evidences the ability to service the mortgage where no deposit exists. Criteria are tight. Minimum rental-history periods, income multiples below the market norm, property-type restrictions, loan caps, and pricing reflects the risk. These products suit renters with strong payment histories and no access to family support.

**Family springboard and family offset mortgages.** A family member deposits savings into a lender-held account as security for a set period instead of gifting them; the buyer borrows at a high loan-to-value, the family keeps its capital (and often earns interest), and the savings are released once the loan-to-value has fallen or the period has run. Family offset versions set the family's savings against the mortgage balance to reduce interest. Neither puts the family member on the title.

**Guarantor mortgages.** A guarantor, usually a parent. Agrees to cover repayments if the borrower cannot, typically securing the guarantee against their own property or savings. Guarantor lending has largely been displaced by joint borrower sole proprietor structures, which lenders find cleaner, but a minority of lenders still offer it, particularly for borderline affordability.

**Deposit Unlock (closed).** The house builders' 95% new-build mortgage scheme closed to new completions in April 2026, with outstanding mortgage offers honoured ([Home Builders Federation](https://www.hbf.co.uk/policy/campaigns-and-initiatives/deposit-unlock/)). A new-build buyer now depends on each lender's own 95% new-build criteria, which are often more restrictive for new-build flats.

## Family-assisted structures: gifts, guarantees and joint borrower sole proprietor

**Family help comes in three legal forms. Money (a gift), income (a joint borrower) or security (a guarantor), and choosing the wrong one costs stamp duty, tax and eligibility.**

**Joint borrower sole proprietor (JBSP).** A JBSP mortgage puts a family member on the mortgage as a joint borrower without putting them on the title: only the buyer owns the property, but the supporting borrower's income is included in the affordability assessment and they are jointly and severally liable for the whole loan. Lenders commonly allow up to four borrowers, restrict supporting borrowers to close family, set the maximum term by the age of the oldest borrower, and require the supporting borrower to take independent legal advice before completion. The structure's tax logic is the reason it has replaced guarantor and joint-ownership routes: because the parent owns no share, their existing home does not trigger the additional-dwelling stamp duty surcharge on the purchase, and the buyer keeps first-time buyer stamp duty relief and first-time buyer scheme eligibility. The exit is planned at the outset: the supporting borrower is removed by remortgage once the buyer's own income carries the loan. JBSP also combines with Right to Buy, where a tenant's family adds income while the tenant keeps sole ownership, covered on our [Right to Buy mortgages](https://mortgagelane.com/mortgages/right-to-buy-mortgages) page.

**Joint ownership with a parent: the trap.** Putting a parent on the title as well as the mortgage makes them a co-owner: if they already own a home, the additional-dwelling surcharge applies to the whole purchase, first-time buyer relief is lost, the parent acquires a capital gains tax exposure on their share, and the buyer loses first-time buyer status for schemes. It is rarely the right structure now that JBSP exists.

**Gifted deposit plus standard mortgage.** The simplest structure where the family has capital rather than income to give: the gift rules above apply, and the buyer's own income must carry the loan.

**Guarantor and springboard.** Covered above: security rather than income, with the guarantor's assets at risk in the guarantor form and ring-fenced in the springboard form.

**Gifted equity and concessionary purchases.** Where the family help is the property itself, covered next.

## Concessionary purchases: buying below market value

**A concessionary purchase is a purchase at a price below the property's market value, most commonly from a family member, where many lenders, though not all, treat the difference between value and price as the buyer's deposit.**  [Parents selling to a child at a discount](https://mortgagelane.com/guides/residential/buying-a-house-from-family), a landlord selling to a sitting tenant below value, and an employer selling to an employee are the typical forms; a sale within the family is the form the most lenders accept.

The lender instructs its own valuation, and [lenders differ on what they then lend against](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages): some work out the loan-to-value on the valuation and cap the loan at the discounted price, while others work on the price paid. Lenders that accept a concessionary purchase require the discount to be a genuine gift: a deed of gift or solicitor's confirmation that the seller retains no interest and expects no repayment. Many also want the seller to move out by completion, and some require separate legal advice for the seller. Some lenders require a cash deposit on top of the gifted equity; others accept the gifted equity as the whole deposit. Buy to let concessionary purchases are accepted by far fewer lenders than residential ones, and usually on stricter terms.

Tax can affect both sides, so the buyer and the seller should each take independent tax advice before the price is agreed. HMRC guidance says market value, not the price received, is used for capital gains tax where an asset is sold for less than it is worth to help the buyer, although reliefs may apply, such as Private Residence Relief on the seller's own home, and the discount can count as a gift for inheritance tax. Stamp Duty Land Tax in England and Northern Ireland (Land Transaction Tax in Wales, Land and Buildings Transaction Tax in Scotland) and any first-time buyer relief also need checking for the way the purchase is documented.

**Get the structure right before the valuation:** lenders differ on how the sale must be documented, for example at the reduced price or at full value with the discount recorded as a gift of equity, so the lender is chosen and its requirements confirmed before the solicitors draw up the contract.

## Government and affordable-housing schemes in England

**Every English scheme changes either the price the buyer pays, the share they buy, or the deposit they need, and each carries eligibility rules that interact with the mortgage.**

**Shared Ownership.** The buyer purchases a share of a home from a housing association, from 10% under the current Homes England model, more commonly 25% to 75%, with a mortgage on that share, and pays a subsidised rent on the share still owned by the association. Household income must not exceed £80,000 (£90,000 in London), and the buyer must be unable to afford a suitable home on the open market. Shares can be increased later by staircasing. The current model permits 1% increments annually in early years alongside larger steps, and new-model leases run for 990 years. Lender appetite is panel-based: the mortgage covers only the purchased share, rent and service charge sit in the affordability assessment, and resales run through the association's nomination period first ([gov.uk Shared Ownership](https://www.gov.uk/shared-ownership-scheme)).

**First Homes.** New-build homes sold to first-time buyers at a discount of at least 30% against market value. Councils can set 40% or 50%, with the discounted price capped at £250,000 (£420,000 in London), household income capped at £80,000 (£90,000 in London), local-connection and key-worker priority at council discretion, and the discount attached to the property in perpetuity so every future sale carries it. Lenders lend against the discounted price on a specific panel ([gov.uk First Homes](https://www.gov.uk/first-homes-scheme)).

**Right to Buy.** Council tenants in England can buy their home at a discount, financed with a residential mortgage from lenders that accept Right to Buy purchases, with most allowing the discount to serve as the deposit. The rules in force when checked on GOV.UK in September 2026: three years' public sector tenancy to qualify; for applications made after 21 November 2024, a maximum discount of 70% of the value or a regional cap of £16,000 to £38,000, whichever is lower; a 30-year cost floor limiting discounts on recently built or improved homes; discount repayable on sale within five years and a council right of first refusal for ten. **Proposed and not yet in force** (the government's [announcement of 28 April 2026](https://www.gov.uk/government/news/right-to-buy-overhaul-to-safeguard-social-housing)): the qualifying period would rise to ten years, discounts would start at 5% of the value and rise by 1% a year to a maximum of 15% or the cash cap, whichever is lower, and newly built social homes would be exempt for a fixed period after they are built. The government's [July 2025 consultation response](https://www.gov.uk/government/consultations/reforming-the-right-to-buy/outcome/government-response-to-the-consultation-on-reforming-the-right-to-buy) also said it would extend the discount repayment period to ten years and make the right of first refusal permanent. These changes need new legislation, and the details can change before it is passed, so check the rules in force when you apply. Full lending criteria, including joint borrower sole proprietor Right to Buy, are on our [Right to Buy mortgages](https://mortgagelane.com/mortgages/right-to-buy-mortgages) page.

**Right to Acquire.** The housing-association equivalent, with a smaller fixed discount. Between £9,000 and £16,000 depending on area, and the same mortgage mechanics as Right to Buy.

**Rent to Buy and Discounted Market Sale.** Rent to Buy lets a tenant in England rent a home at a rent normally 20% below market rent while saving a deposit, with the option to buy ([gov.uk Rent to Buy](https://www.gov.uk/rent-to-buy)); [Discounted Market Sale homes](https://mortgagelane.com/mortgages/section-106-mortgages) are sold below market value under a discount secured through planning, which usually stays with the property. Both are local, supply-dependent and lender-panel-specific.

**Older Persons Shared Ownership.** The version of Shared Ownership for buyers aged 55 or over, where the share is capped at 75% and no rent is charged on the remaining share once 75% is owned.

**Help to Buy Equity Loan (England). Closed.** Applications for the final English equity-loan scheme closed on 31 October 2022. Existing borrowers can switch mortgage deal, remortgage with the loan kept, or repay it in part or in full. Moving to a new lender with the equity loan kept needs the administrator's consent and a lender that accepts the second charge; in England, a rate switch with the current lender and no extra borrowing needs no application.

**Forces Help to Buy.** Eligible Regular armed forces personnel can borrow up to 50% of annual salary, capped at £25,000, interest free, towards a deposit and costs, normally repaid through salary over up to 10 years; Reservists are not eligible. It became an enduring policy from 1 January 2023 ([gov.uk](https://www.gov.uk/guidance/forces-help-to-buy)).

## Wales, Scotland and Northern Ireland

**The devolved nations run their own schemes and their own property taxes, and two of them are in flux at the time of writing.**

**Wales.** Help to Buy Wales accepts eligible new-build applications submitted by **31 March 2027**. The scheme offers an equity mortgage of up to 20% on an eligible home costing up to £300,000, with a deposit of at least 5% and a first-charge repayment mortgage from a qualifying lender. Homes sold through the scheme need an EPC rating of B or better ([Welsh eligibility](https://www.gov.wales/help-buy-wales/eligibility); [Welsh scheme guidance](https://www.gov.wales/help-buy-wales/repaying-shared-equity-loan)). Wales also runs Homebuy and Shared Ownership Wales. Land Transaction Tax has no first-time buyer relief; the starting threshold applies to everyone ([gov.wales LTT](https://www.gov.wales/land-transaction-tax-guide)). Right to Buy was abolished in Wales in 2019.

**Scotland.** The Help to Buy (Scotland) schemes are closed, and so is the earlier First Home Fund, which ran from December 2019 to March 2022. As at October 2026 two schemes are open, and they cannot be used together. Under the [Low-cost Initiative for First Time Buyers (LIFT)](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland) the Scottish Government takes an equity stake, usually 10% to 40%, with no rent charged on it and its share repaid on sale, through New Supply Shared Equity on housing association and council new builds or Open Market Shared Equity on open-market homes within local price thresholds. Open Market Shared Equity opened for 2026 to 2027 applications on 13 August 2026, with limited funding ([gov.scot](https://www.gov.scot/news/supporting-people-to-buy-their-first-home/)). The First Homes Fund, open since 24 June 2026, gives first-time buyers up to £10,000 towards a home worth up to £300,000 in return for an equity stake ([gov.scot](https://www.gov.scot/publications/first-homes-fund-how-to-apply/)). Land and Buildings Transaction Tax gives first-time buyers a nil-rate band to £175,000 ([Revenue Scotland](https://revenue.scot/taxes/land-buildings-transaction-tax)). Right to Buy was abolished in Scotland in 2016. Scottish conveyancing, missives and title conditions apply. See [mortgages in Scotland](https://mortgagelane.com/mortgages/mortgages-scotland) for the legal-system differences that apply to any Scottish purchase.

**Northern Ireland.**  [Co-Ownership](https://mortgagelane.com/mortgages/mortgages-northern-ireland) lets buyers purchase between 50% and 90% of a home through the Northern Ireland Co-Ownership Housing Association, up to a property value of £215,000 for an existing home or £230,000 for a new build ([Co-Ownership property criteria](https://co-ownership.org/starting-the-process/application-process-explained/property-criteria), checked 1 October 2026), pay rent of 2.5% a year on the share Co-Ownership owns, and buy more in steps, typically 5%, under a 99-year equity-sharing lease. The House Sales Scheme is Northern Ireland's Right to Buy equivalent. Stamp Duty Land Tax and its first-time buyer relief apply as in England.

## Stamp duty for first-time buyers

**In England and Northern Ireland a first-time buyer pays no Stamp Duty Land Tax on the first £300,000 of a home costing up to £500,000, with relief lost entirely above £500,000** ([gov.uk](https://www.gov.uk/stamp-duty-land-tax)). Every joint purchaser must be a first-time buyer, the home must be the buyer's main residence, and the relief is not available on buy to let purchases. Scotland's Land and Buildings Transaction Tax gives a first-time buyer nil-rate band to £175,000; Wales's Land Transaction Tax has no first-time buyer relief. Rates and thresholds move at Budgets: the official pages carry the current figures.

Stamp duty is the reason structure matters as much as scheme: a parent on the title, a partner who once owned abroad, or a buy to let purchase each removes the relief.

## The property itself: where first-time buyer rules change with the building

**The scheme and the structure decide the deposit; the property decides the lender.** Each type below carries rules a first-time buyer meets more often than any other buyer, and each has its own page:

- **New-build homes.** Developer incentives must be disclosed and are capped; a recognised warranty or Professional Consultant Certificate (PCC) is required; off-plan offers are subject to revaluation at completion; First Homes lives here, and Deposit Unlock closed to new completions in April 2026. See [investing in new builds and conversions](https://mortgagelane.com/insights/investing-in-new-builds-and-conversions).
- **Leasehold flats.** Most flats in England and Wales; the lease length sets the mortgage term (in our experience most lenders want 50 years remaining at the end of the term, and the specialist lenders we use accept 35), ground rent and service charge sit in affordability, and short leases carry an extension plan. See [mortgage for a leasehold flat](https://mortgagelane.com/mortgages/mortgage-for-leasehold-flat).
- **Ex-council flats and houses.** The block is underwritten before the flat: private-ownership mix, height and lifts, deck access, construction and the external wall position. Right to Buy purchases sit here. See [mortgage on an ex-council flat](https://mortgagelane.com/mortgages/mortgage-on-an-ex-council-flat).
- **Non-standard construction.** Precast concrete, steel and timber frame, thatch and modern methods of construction each need type-specific evidence. Eligibility depends on the lender’s property criteria, including for mortgages under the Mortgage Guarantee Scheme. See [non standard construction mortgages](https://mortgagelane.com/mortgages/non-standard-construction-mortgages).
- **Listed and rural property.** Conservation and land considerations: [mortgages for listed buildings](https://mortgagelane.com/insights/mortgage-for-listed-buildings), [rural mortgages](https://mortgagelane.com/specialists/rural-mortgages), [smallholding mortgages](https://mortgagelane.com/insights/smallholding-mortgages).
- **Property needing work.** A first home bought for renovation is financed on a [renovation mortgage](https://mortgagelane.com/insights/renovation-mortgages) or, where it cannot yet carry a mortgage, with bridging (see the [bridging loan guide](https://mortgagelane.com/guides/bridging-loan-guide)); a first home built from scratch on [self-build mortgage lenders](https://mortgagelane.com/insights/self-build-mortgage-lenders).
- **Auction purchases.** 28-day completion deadlines and first-time buyer mortgage timescales rarely align; bridging to complete, then a term mortgage, is the usual route. See [auction property loans](https://mortgagelane.com/short-term-finance/auction-property-loans).

## First-time buyers who are not buying a home to live in

**A first-time buyer can be a landlord, and the rules that apply are a different set entirely.**

**First-time buyer buy to let.** Lenders accept first-time buyers for buy to let, assessed on rental coverage with additional controls: preference for standard, easily lettable stock, and for some lenders a "back door" residential check that limits borrowing against personal income even where rent supports more, protecting the lender against a disguised home purchase. No first-time buyer stamp duty relief applies, because relief requires occupation as a main residence. The mechanics are in the [buy to let mortgage guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide), on the [buy to let product page](https://mortgagelane.com/mortgages/buy-to-let-mortgages) and on [first-time landlord mortgages](https://mortgagelane.com/mortgages/first-time-landlord-mortgages); first-time investors targeting shared houses start at [HMOs for first-time investors](https://mortgagelane.com/insights/hmo-mortgages-for-first-time-property-investors). Holiday let lenders apply their own income and use tests, covered in the [holiday let guide](https://mortgagelane.com/guides/holiday-let-mortgage-guide).

**Buying a home and taking a lodger.** An owner-occupier letting a room keeps a residential mortgage with the lender's consent, and rental income up to £7,500 a year is tax-free under the Rent a Room scheme ([gov.uk](https://www.gov.uk/rent-room-in-your-home)). Some lenders count expected lodger income towards affordability. See our [lodger mortgage](https://mortgagelane.com/insights/lodger-mortgage) page.

**Sharia-compliant purchases.** Home purchase plans replace interest with rent-and-ownership structures for residential purchases, and the buy to let version is covered on [Sharia-compliant buy to let](https://mortgagelane.com/insights/sharia-buy-to-let-mortgages).

## Circumstances that change the lender, not the eligibility

**Self-employed first-time buyers** are [assessed on tax calculations or accounts](https://mortgagelane.com/mortgages/self-employed-mortgages). Commonly two years, with some lenders accepting one, and on the consistency rather than the growth of income. **Adverse credit** narrows the panel rather than closing it; our [declined mortgages](https://mortgagelane.com/insights/declined-mortgages) page covers the recovery sequence. **Visa holders and non-UK nationals** buying a first home are assessed on visa type and time remaining, residency history and deposit size. See [mortgages for foreign nationals](https://mortgagelane.com/specialists/mortgages-for-foreign-nationals) and, for UK nationals buying from abroad, the [expat mortgage guide](https://mortgagelane.com/guides/expat-mortgage-guide). **Buying with friends** is possible with up to four owners on the title, held as tenants in common with a deed of trust recording each share and what happens on exit; every owner is jointly liable for the whole mortgage, and each must be a first-time buyer for stamp duty relief. **Older first-time buyers** meet term compression from the lender's maximum age. **Key workers** have no national scheme in 2026, but First Homes priority and local Discounted Market Sale schemes frequently prioritise them. How lenders treat teachers' pay and student loan deductions is covered on our [mortgages for teachers](https://mortgagelane.com/mortgages/mortgages-for-teachers) page.

## How a first-time buyer mortgage is arranged

1. **Status and structure.** First-time buyer status is confirmed under the three definitions; the deposit source, any scheme and any family structure are settled before the property search, because they change what can be bought.
2. **Agreement in principle.** A credit-checked decision in principle sets the budget and evidences seriousness to agents; scheme purchases add the administrator's eligibility check.
3. **Full application and valuation.** Income, deposit and identity evidence, disclosure of any incentives or gifts, and the lender's valuation. Full or automated depending on the property.
4. **Offer, exchange and completion.** The mortgage offer, the legal work (including scheme leases, deeds of gift, deeds of trust or independent legal advice for supporting borrowers), the exchange deposit, and completion, with the Help to Buy ISA bonus or scheme funds drawn at completion.

Mortgage Lane is authorised and regulated by the Financial Conduct Authority for mortgage advice; the Consumer Duty requires every recommendation to be suitable for the borrower's circumstances, which for a first-time buyer means the structure and scheme are compared, not just the rate.

## Every first-time buyer page in one place

**This guide is the hub; each scenario has its own page:**

**Purchase routes and schemes:**  [Right to Buy mortgages](https://mortgagelane.com/mortgages/right-to-buy-mortgages) · [Lodger mortgages](https://mortgagelane.com/insights/lodger-mortgage) · [Sharia-compliant buy to let](https://mortgagelane.com/insights/sharia-buy-to-let-mortgages) · [Buy to let mortgages](https://mortgagelane.com/mortgages/buy-to-let-mortgages) · [HMOs for first-time investors](https://mortgagelane.com/insights/hmo-mortgages-for-first-time-property-investors)

**Property types:**  [New builds and conversions](https://mortgagelane.com/insights/investing-in-new-builds-and-conversions) · [Mortgage for a leasehold flat](https://mortgagelane.com/mortgages/mortgage-for-leasehold-flat) · [Mortgage on an ex-council flat](https://mortgagelane.com/mortgages/mortgage-on-an-ex-council-flat) · [Non standard construction mortgages](https://mortgagelane.com/mortgages/non-standard-construction-mortgages) · [Listed buildings](https://mortgagelane.com/insights/mortgage-for-listed-buildings) · [Rural mortgages](https://mortgagelane.com/specialists/rural-mortgages) · [Smallholdings](https://mortgagelane.com/insights/smallholding-mortgages) · [Renovation mortgages](https://mortgagelane.com/insights/renovation-mortgages) · [Self-build mortgage lenders](https://mortgagelane.com/insights/self-build-mortgage-lenders) · [Auction property loans](https://mortgagelane.com/short-term-finance/auction-property-loans)

**Borrower circumstances:**  [Declined mortgages](https://mortgagelane.com/insights/declined-mortgages) · [Mortgages for foreign nationals](https://mortgagelane.com/specialists/mortgages-for-foreign-nationals) · [Expat mortgage guide](https://mortgagelane.com/guides/expat-mortgage-guide)

**The sibling guides:**  [Buy to let mortgage guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide) · [Bridging loan guide](https://mortgagelane.com/guides/bridging-loan-guide) · [Holiday let mortgage guide](https://mortgagelane.com/guides/holiday-let-mortgage-guide) · [Buy to let mortgages Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-scotland)

## Sources and further reading

**The claims in this guide trace to primary sources, first checked on 31 August 2026. The Help to Buy, Help to Buy ISA, Lifetime ISA, Deposit Unlock, Mortgage Guarantee Scheme and UK Finance details were rechecked on 29 September 2026, and the loan-to-income, stress test, Rent to Buy, Right to Acquire and Northern Ireland Co-Ownership details on 1 October 2026. Figures described as Mortgage Lane's experience are the firm's own, not a source's:**

- [English Housing Survey (MHCLG)](https://www.gov.uk/government/collections/english-housing-survey): first-time buyer age and tenure data
- [PRA CP6/26, High loan to income lending](https://www.bankofengland.co.uk/prudential-regulation/publication/2026/april/high-loan-to-income-lending-consultation-paper): the loan-to-income limit easing and its first-time buyer share
- [HM Treasury, 15 July 2025](https://www.gov.uk/government/news/reeves-to-cut-financial-red-tape-to-boost-homeownership): the estimate of up to 36,000 additional first-time buyer mortgages · [FCA mortgage rule review](https://www.fca.org.uk/firms/mortgage-rule-review): flexibility in the stress test rule
- [FCA Handbook, MCOB](https://www.handbook.fca.org.uk/handbook/MCOB/): affordability, advice and disclosure rules for regulated mortgages
- [2025 Mortgage Guarantee Scheme (gov.uk)](https://www.gov.uk/government/publications/2025-mortgage-guarantee-scheme): the permanent 95% scheme
- [Stamp Duty Land Tax (gov.uk)](https://www.gov.uk/stamp-duty-land-tax) · [LBTT (Revenue Scotland)](https://revenue.scot/taxes/land-buildings-transaction-tax) · [LTT (gov.wales)](https://www.gov.wales/land-transaction-tax-guide)
- [Lifetime ISA (gov.uk)](https://www.gov.uk/lifetime-isa) · [Affordable home ownership schemes (gov.uk)](https://www.gov.uk/affordable-home-ownership-schemes) · [Shared Ownership (gov.uk)](https://www.gov.uk/shared-ownership-scheme) · [First Homes (gov.uk)](https://www.gov.uk/first-homes-scheme) · [Rent to Buy (gov.uk)](https://www.gov.uk/rent-to-buy) · [Right to Acquire discounts (gov.uk)](https://www.gov.uk/right-to-acquire-buying-housing-association-home/discounts) · [Co-Ownership property criteria (Northern Ireland)](https://co-ownership.org/starting-the-process/application-process-explained/property-criteria)
- [Right to Buy overhaul, 28 April 2026 (gov.uk)](https://www.gov.uk/government/news/right-to-buy-overhaul-to-safeguard-social-housing) · [Right to Buy guidance (gov.uk)](https://www.gov.uk/right-to-buy-buying-your-council-home)
- [Forces Help to Buy (gov.uk)](https://www.gov.uk/guidance/forces-help-to-buy) · [Rent a Room scheme (gov.uk)](https://www.gov.uk/rent-room-in-your-home) · [Inheritance tax on gifts (gov.uk)](https://www.gov.uk/inheritance-tax/gifts)
- [Help to Buy: Wales (gov.wales)](https://www.gov.wales/help-buy-wales) · [Open Market Shared Equity (mygov.scot)](https://www.mygov.scot/open-market-shared-equity-scheme)
- [Bank of England. Monetary policy and Bank Rate](https://www.bankofengland.co.uk/monetary-policy)
- [UK Finance, England Mortgage Market: Key Data, 2026 Q2](https://www.ukfinance.org.uk/data-and-research/data/key-mortgage-market-data): first-time buyer loan size and loan-to-value (Regulated Mortgage Survey)
- [Deposit Unlock (Home Builders Federation, updated 16 March 2026)](https://www.hbf.co.uk/policy/campaigns-and-initiatives/deposit-unlock/): the scheme's closure to new completions in April 2026
- [Help to Buy ISA conveyancer FAQs (scheme administrator)](https://www.helptobuyisaadmin.org.uk/conveyancers/faqs): when the bonus is claimed and why it cannot fund the exchange deposit

## Related mortgage guides and insights

- [2026](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland)Mortgage[First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland)First-time buyer mortgages in Scotland: 5% deposits, the Home Report and offers over, LBTT relief to £175,000, LIFT and the First Homes Fund.[Read more about First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits](https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland)
- [2026](https://mortgagelane.com/mortgages/first-time-landlord-mortgages)Mortgage[First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages)First time landlord mortgages: how the rental stress test sets your loan, why your tax band matters, stamp duty, company ownership and the Renters' Rights Act.[Read more about First Time Landlord Mortgages, Your First Buy to Let](https://mortgagelane.com/mortgages/first-time-landlord-mortgages)
- [2026](https://mortgagelane.com/guides/mortgage-for-50k-salary/how-much-deposit-do-i-need-to-buy-a-house-as-a-first-time-buyer)Guide[How much deposit do I need to buy a house as a first time buyer?](https://mortgagelane.com/guides/mortgage-for-50k-salary/how-much-deposit-do-i-need-to-buy-a-house-as-a-first-time-buyer)As a first-time buyer in the UK, the minimum deposit required to purchase a property is typically 5% of the property’s purchase price. This means, for a home valued at £250,000, you’d need at least £12,500 as a deposit. [Read more about How much deposit do I need to buy a house as a first time buyer?](https://mortgagelane.com/guides/mortgage-for-50k-salary/how-much-deposit-do-i-need-to-buy-a-house-as-a-first-time-buyer)

## Frequently asked questions about the complete first-time buyer mortgage guide

**Q: Who counts as a first-time buyer in the UK?**

faq-id: who-counts-as-a-first-time-buyer-in-the-uk

A first-time buyer is someone who has never owned a residential property anywhere in the world, alone or jointly. HM Revenue and Customs applies that test for Stamp Duty Land Tax relief, requiring every joint purchaser to qualify, while individual lenders and scheme administrators apply their own versions, some stricter and some more lenient.

**Q: How much deposit does a first time buyer need?**

faq-id: how-much-deposit-does-a-first-time-buyer-need

The usual minimum is 5% of the price or the valuation, whichever is lower, which means a 95% loan-to-value mortgage. The government's 2025 Mortgage Guarantee Scheme supports eligible mortgages above 90% and up to 95% loan-to-value through participating lenders. Some routes need less cash of your own: some lenders count a genuine family discount (gifted equity) or, in England, a Right to Buy discount towards the deposit, and a small number of lenders offer 98% or even 100% loan-to-value products to first-time buyers on strict criteria. A larger deposit widens the choice of lenders and of the properties they will accept.

**Q: How much can a first-time buyer borrow?**

faq-id: how-much-can-a-first-time-buyer-borrow

It depends on the lender's income multiple and its affordability assessment of outgoings, credit commitments and a stressed interest rate, and the lower result applies. In Mortgage Lane's experience many residential lenders we use lend up to around 5 times gross income after allowing for outgoings, with some products for professionals and specialist cases up to 6 times; that is our experience, not a promise. The Bank of England eased its limit on lending at 4.5 times income or more in 2025, which lets lenders offer more high loan-to-income mortgages.

**Q: What is a joint borrower sole proprietor mortgage?**

faq-id: what-is-a-joint-borrower-sole-proprietor-mortgage

A joint borrower sole proprietor (JBSP) mortgage adds a family member to the mortgage as a joint borrower without adding them to the title, so their income supports affordability while only the buyer owns the property. The supporting borrower is jointly liable for the loan and must take independent legal advice.

**Q: Does a joint borrower sole proprietor mortgage affect stamp duty?**

faq-id: does-a-joint-borrower-sole-proprietor-mortgage-affect-stamp-duty

A joint borrower sole proprietor mortgage does not trigger the additional-dwelling stamp duty surcharge, because the supporting borrower owns no share of the property. The buyer keeps first-time buyer Stamp Duty Land Tax relief where they qualify, which putting a parent on the title as a co-owner would remove.

**Q: Can my parents gift me a deposit?**

faq-id: can-my-parents-gift-me-a-deposit

Parents can gift a deposit, and lenders that accept gifted deposits usually accept gifts from parents, subject to a signed gift letter confirming there is nothing to repay and no interest in the property, and evidence of each parent's identity and where the money came from. For inheritance tax the gift is a potentially exempt transfer, which falls outside the parent's estate if they survive seven years. Up to £3,000 a tax year from each parent, plus any of the previous year's £3,000 left unused, is exempt straight away under the annual exemption.

**Q: What is a concessionary purchase mortgage?**

faq-id: what-is-a-concessionary-purchase-mortgage

A concessionary purchase mortgage finances a property bought below market value from someone with a connection to the buyer, usually a family member and sometimes a landlord selling to a sitting tenant. Some lenders treat the discount as a gift of equity that can count towards the deposit, while others lend only on the price paid and ask for a cash deposit. Lenders that accept it want the discount to be an unconditional gift, confirmed in writing and checked by the solicitors, and some also require the seller to move out.

**Q: What is the Lifetime ISA and can I still use it?**

faq-id: what-is-the-lifetime-isa-and-can-i-still-use-it

The Lifetime ISA is a savings account that people aged 18 to 39 can open. The government adds a 25% bonus to up to £4,000 saved each year, so up to £1,000 a year, and the savings can go towards a first home costing £450,000 or less, bought at least 12 months after the first payment in. Withdrawing the money for another reason before age 60 normally carries a 25% charge. The government consulted from 22 June to 18 August 2026 on a new First Time Buyer ISA, which will be offered in place of the Lifetime ISA once it is available. When we checked on 29 September 2026, no launch date had been announced; the consultation says a Lifetime ISA can still be opened until the new ISA is available, and existing holders can keep saving into theirs under the current rules.

**Q: Can I still use a Help to Buy ISA?**

faq-id: can-i-still-use-a-help-to-buy-isa

A Help to Buy ISA can still be used by existing holders: the accounts closed to new savers in November 2019, but holders can pay in until 30 November 2029 and claim the 25% government bonus, up to £3,000, until 1 December 2030. Your conveyancer claims the bonus once the purchase is certain, usually between exchange and completion, and adds it to the completion funds, so it cannot form the exchange deposit.

**Q: Is Help to Buy still available?**

faq-id: is-help-to-buy-still-available

The English Help to Buy equity-loan scheme is closed to new applications, but existing borrowers can manage or repay their loans. Help to Buy Wales accepts eligible new-build applications submitted by 31 March 2027, subject to scheme conditions and funding. When we checked on 29 September 2026, the government had announced a proposed English scheme, Your First Home (26 September 2026); it was not open, and the government said details would follow at the Budget on 28 October 2026.

**Q: How does Shared Ownership work?**

faq-id: how-does-shared-ownership-work

Shared Ownership lets a buyer purchase a share of a home from a housing association, from 10% under the current model, with a mortgage on that share and subsidised rent on the rest. Household income must not exceed £80,000, or £90,000 in London, and the share can be increased over time by staircasing.

**Q: What is the First Homes scheme?**

faq-id: what-is-the-first-homes-scheme

The First Homes scheme sells homes in England to first-time buyers at a discount of at least 30% to market value, and councils can set 40% or 50%. On the first sale the price after the discount is capped at £250,000, or £420,000 in London. Buyers must earn no more than £80,000 a year before tax as a household, or £90,000 in London, and get a mortgage for at least half the price, and councils can add local criteria for the first 3 months a home is on sale. The discount stays with the home at every later sale ([GOV.UK: First Homes scheme](https://www.gov.uk/first-homes-scheme)). As at October 2026 national planning policy no longer requires councils to deliver First Homes, so whether any are offered depends on the area.

**Q: Can I use my Right to Buy discount as a deposit?**

faq-id: can-i-use-my-right-to-buy-discount-as-a-deposit

In England, lenders that accept Right to Buy usually let the discount count towards the deposit, because it is equity in the property from completion. Each lender still caps the loan against the market value, and the caps vary between lenders, so a small discount can leave you needing cash of your own. For applications made on or after 21 November 2024 the maximum discount is the lower of 70% of the value and a regional maximum of £16,000 to £38,000, and some or all of the discount is repayable if you sell within five years, worked out on the value of the home when you sell. Right to Buy has ended in Wales and Scotland.

**Q: Is Right to Buy changing?**

faq-id: is-right-to-buy-changing

Changes are proposed for England but are not yet law. On 28 April 2026 the government announced plans to raise the qualifying period from three years to ten, and to start discounts at 5% of the value, rising by 1% a year to a maximum of 15% or the regional cash cap, whichever is lower. The Social Housing Bill, which includes the longer qualifying period and the lower discounts, passed the House of Lords and had its second reading in the House of Commons on 10 September 2026. Until it is passed and in force the current rules apply, so check them with your landlord or on GOV.UK when you apply. Right to Buy has already ended in Wales and Scotland.

**Q: Do first time buyers pay stamp duty?**

faq-id: do-first-time-buyers-pay-stamp-duty

First-time buyers in England and Northern Ireland pay no Stamp Duty Land Tax (SDLT) on properties up to £300,000. Between £300,001 and £500,000 they pay 5% on the portion above £300,000. Above £500,000, first-time buyer relief is lost entirely and standard rates apply. Scotland (LBTT) and Wales (LTT) run separate systems with different thresholds and rules.

**Q: What is a 100% mortgage?**

faq-id: what-is-a-100-mortgage

A 100% mortgage lends the full purchase price with no deposit, and the small number available to first-time buyers are usually assessed on a track record of rent and bills paid on time in place of savings. Criteria include minimum rental-history periods, lower income multiples and property restrictions, with pricing reflecting the risk.

**Q: Can a first-time buyer get a buy to let mortgage?**

faq-id: can-a-first-time-buyer-get-a-buy-to-let-mortgage

Yes, a first-time buyer can get a buy to let mortgage from some lenders, which assess the case more cautiously than one from a landlord who owns a home. Lenders that accept first-time buyers may ask for a minimum personal income, set a lower maximum loan to value or prefer standard, easily let property. The purchase does not qualify for first-time buyer relief from Stamp Duty Land Tax, because the relief is only for buyers who intend to live in the property as their only or main residence ([HMRC Stamp Duty Land Tax Manual: SDLTM29831](https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm29831)). Owning the rental also means a later home purchase is no longer a first-time purchase for stamp duty.

**Q: Can I buy my first home with friends?**

faq-id: can-i-buy-my-first-home-with-friends

You can buy a first home with friends, with up to four owners on the title, usually held as tenants in common under a deed of trust recording each share. Every owner is jointly liable for the whole mortgage, and all owners must be first-time buyers for Stamp Duty Land Tax relief to apply.

**Q: What help is there for first-time buyers in Scotland?**

faq-id: what-help-is-there-for-first-time-buyers-in-scotland

As at October 2026, first-time buyers in Scotland can use LIFT Open Market Shared Equity, which opened for 2026 to 2027 applications on 13 August 2026 and lets the Scottish Government hold 10% to 40% of a home priced within local thresholds. New Supply Shared Equity covers some housing association and council new builds. The First Homes Fund, open since 24 June 2026, adds up to £10,000 towards a home worth up to £300,000 in return for an equity stake, and cannot be used together with LIFT. Land and Buildings Transaction Tax relief means no tax on the first £175,000 of the price, and the UK Mortgage Guarantee Scheme and the Lifetime ISA also apply in Scotland.

**Q: What help is there for first-time buyers in Northern Ireland?**

faq-id: what-help-is-there-for-first-time-buyers-in-northern-ireland

First-time buyers in Northern Ireland can use Co-Ownership, buying a share of 50% to 90% of a home costing up to £215,000, or £230,000 for a new build, as at October 2026. They pay Co-Ownership rent of 2.5% a year on the share it owns and hold the home on a 99-year lease. Stamp Duty Land Tax first-time buyer relief applies as in England, with nothing to pay on the first £300,000 of a home costing £500,000 or less. The UK-wide Mortgage Guarantee Scheme supports mortgages above 90% and up to 95% through participating lenders, and a Lifetime ISA's 25% bonus can go towards a first home costing £450,000 or less.

## Talk it through with an adviser

Let’s talk property finance

## Contact us

**Call our team:** [+44 333 231 8206](tel:+443332318206)
**Email us:** [enquiries@mortgagelane.com](mailto:enquiries@mortgagelane.com)
**Opening hours:** Monday to Friday, 9am–6pm Closed Saturday and Sunday

Your enquiry goes to our team, who will get in touch to discuss your next steps.

Fields marked  are required.

First name

Last name

Email

Phone

What can we help with?    Residential mortgage  Remortgage  Buy to let  Bridging finance  Commercial  Something else

Tell us about your enquiry

I am happy to receive occasional mortgage news and rate updates.

Send enquiry

We use your details to respond to your enquiry and, if you opt in, send updates. See our [privacy policy](https://mortgagelane.com/privacy-policy).

Published: 2026-09-11

Last reviewed: 2026-10-08

Source: https://mortgagelane.com/guides/first-time-buyer-mortgage-guide