First-Time Buyer Mortgage Guide:

Apr 14, 2025
5 min read

Updated: Feb 19

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Everything You Need to Know Before Buying Your First Home

Buying your first home is an exciting milestone, but the mortgage process can feel confusing if you have never done it before. Many first-time buyers across Oxford, Bicester and the wider UK are unsure where to start, how much they can borrow, or what lenders are really looking for.

The good news is that with the right preparation and advice, getting your first mortgage is often more straightforward than people expect. Understanding the process early can help you avoid delays, strengthen your application and move forward with confidence.

Drummonds Finance Group is authorised and regulated by the Financial Conduct Authority and brings over 10 years of mortgage and protection experience supporting first-time buyers across the UK. In this guide, we explain exactly how the process works and what you need to know.

Who Qualifies as a First-Time Buyer

In the UK, you are typically considered a first-time buyer if you have never owned a residential property before, either in the UK or overseas. This definition is important because first-time buyers can sometimes benefit from lower stamp duty thresholds and access to certain schemes.

Lenders will still assess affordability, income stability, credit history and deposit size in the usual way. Being a first-time buyer does not automatically guarantee approval, but it does mean there are often more supportive options available compared to home movers.

How Much Can First-Time Buyers Borrow

One of the most common questions is how much you can borrow. Most UK lenders use income multiples as a starting point for affordability assessments. In many straightforward cases, buyers can borrow around four to four and a half times their annual income, although this can vary.

Some lenders may offer higher income multiples where the overall application is strong, particularly for applicants with higher earnings, stable employment and low existing commitments. Others may be more cautious where income is variable or credit history is weaker.

In addition to income multiples, lenders also carry out detailed affordability checks. They will review your monthly commitments, household spending and future interest rate stress tests to ensure the mortgage remains sustainable.

If you are unsure how your income would be assessed, speaking to an experienced mortgage broker in Oxford early in the process can provide useful clarity.

Mortgage Broker Oxford

How Much Deposit Do You Need

Deposit requirements vary by lender and your individual circumstances. In many straightforward first-time buyer cases, it is possible to secure a mortgage with a deposit from around five to ten per cent of the property value.

However, buyers with more complex profiles, such as adverse credit, variable income or certain visa types, may be asked to provide a larger deposit. In these situations, deposits of fifteen to twenty-five per cent are more typical.

Saving a larger deposit can improve both your chances of approval and the interest rates available. Lenders generally view lower loan-to-value applications as lower risk.

What Credit Score Do You Need

There is no universal minimum credit score required to obtain a mortgage in the UK. Each lender uses its own internal scoring system, and many will manually assess applications where the overall profile is strong.

What matters most is your recent credit conduct. Lenders will review whether payments have been made on time, whether there are any defaults or CCJs, and how your overall borrowing has been managed.

Historic minor issues do not automatically prevent approval. Many buyers with previous credit blips still secure mortgages each year. If your situation is more complex, you may wish to review our specialist adverse credit mortgage guidance for further support.

Adverse Mortgage Guide

The First-Time Buyer Mortgage Process Step by Step

Understanding the typical journey can make the process feel far less daunting.

Most buyers begin by reviewing their credit reports and assessing how much deposit they have available. The next step is usually to obtain a decision in principle, also called an agreement in principle. This gives an indication of how much a lender may be willing to offer and shows estate agents that you are a serious buyer.

Once you have found a suitable property and had an offer accepted, you submit a full mortgage application. The lender will then conduct underwriting checks, instruct a valuation, and review supporting documents such as payslips and bank statements.

If the lender is satisfied, they will issue a formal mortgage offer. Your solicitor then handles the legal work before contracts are exchanged and the purchase is completed.

First-Time-Buyer Poor Credit

What Costs Should First-Time Buyers Budget For

Many buyers focus purely on the deposit, but there are several additional costs to consider.

You may need to budget for solicitor fees, valuation fees, potential broker fees, removal costs and initial furnishing expenses. Depending on the property price and your status, stamp duty may also apply, although first-time buyers often benefit from higher thresholds.

Planning for these costs early can help avoid last-minute financial pressure.

Government Schemes That May Help

First-time buyers in the UK may be able to access various support schemes depending on eligibility and availability.

Shared ownership allows buyers to purchase a share of a property and pay rent on the remaining portion. The First Homes scheme offers discounted properties in certain areas. Some buyers also benefit from Lifetime ISAs to boost their deposit savings.

Each scheme has its own rules, and suitability depends on your long-term plans. It is important to review the pros and cons carefully before proceeding.

Common Mistakes First-Time Buyers Should Avoid

One of the most frequent mistakes is making major credit applications shortly before applying for a mortgage. Taking out new financing, missing payments, or increasing credit card balances can negatively impact affordability assessments.

Another common issue is underestimating the importance of document preparation. Lenders typically require clear proof of income, the source of deposits, and identity. Having these ready early can significantly speed up the process.

Finally, many buyers approach their bank first without exploring the wider market. Because lender criteria vary so widely, this can sometimes lead to unnecessary declines that could have been avoided with proper guidance.

How Drummonds Finance Group Supports First-Time Buyers

Drummonds Finance Group is authorised and regulated by the Financial Conduct Authority and has over 10 years of experience helping first-time buyers secure mortgages across Oxford, Bicester and the wider UK.

We provide clear, practical advice tailored to your circumstances. Our role is to review your income, credit profile and deposit position, then match you with lenders whose criteria best fit your situation.

Because we have broad mortgage knowledge across both high street and specialist lenders, we are often able to help clients who have been unsure about their options or who have more complex circumstances. Our focus is always on careful case packaging and guiding you confidently through each stage of the journey.

If you are at an early stage and want to understand your borrowing potential, speaking to a mortgage broker in Bicester or Oxford can often provide useful clarity.

Mortgage Broker Bicester