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Britestate
Complete Guide for 2025/26

First-Time Buyer Guide

Everything you need to know about buying your first home in the UK. From government schemes and savings options to an affordability checker — all in one place.

Affordability Checker
See how much you could afford as a first-time buyer.

Your Estimated Affordable Range

£165,000–£191,250

Borrowing (4× income)

£140,000

Borrowing (4.75×)

£166,250

Deposit %

13.1%

Based on typical lender multiples of 4–4.75× income. Your actual borrowing capacity depends on outgoings, credit history, and lender criteria.

Government Schemes & Eligibility

Eligibility

To qualify as a first-time buyer in the UK, you must never have owned a residential property anywhere in the world. This includes inherited or gifted properties.

  • You must not have previously owned a freehold or leasehold interest in a dwelling
  • This applies to properties in the UK and abroad
  • Both buyers in a joint purchase must qualify as first-time buyers
  • You benefit from SDLT relief on properties up to £500,000 (England & NI)

Help to Buy ISA

Although closed to new applicants since November 2019, existing holders can continue saving until November 2029. The government adds 25% to your savings (up to £3,000 bonus).

  • Maximum savings of £12,000 (£200/month after initial £1,000)
  • 25% government bonus capped at £3,000 on £12,000
  • Bonus is paid on completion, not exchange
  • Property must be £250,000 or less (or £450,000 in London)

Lifetime ISA (LISA)

Save up to £4,000 per year and receive a 25% government bonus (up to £1,000/year) towards your first home or retirement. Available to anyone aged 18-39.

  • Save up to £4,000 per year with a 25% government bonus
  • Maximum annual bonus of £1,000
  • Property must cost £450,000 or less
  • You must have had the LISA open for at least 12 months before using it
  • 25% penalty for withdrawals not used for first home or retirement

Shared Ownership

Buy a share of a home (25% to 75%) and pay rent on the remaining share. You can buy more shares over time through a process called ‘staircasing’.

  • Buy a share between 25% and 75% of the property value
  • Pay reduced rent on the share you don't own
  • Staircase up to full ownership over time
  • Household income must be £80,000 or less (or £90,000 in London)
  • Available on new-build and some resale properties

Right to Buy

Council tenants in England may be able to buy their home at a discount of up to £102,400 (or £136,400 in London) depending on how long they have been a tenant.

  • Available to secure council tenants of at least 3 years
  • Discount based on length of tenancy and property type
  • Maximum discount of £102,400 (£136,400 in London) as of 2025/26
  • Houses: 35% discount after 3 years, +1% per year up to 70%
  • Flats: 50% discount after 3 years, +2% per year up to 70%

Frequently Asked Questions

How much deposit do I need as a first-time buyer?

Most lenders require a minimum 5% deposit, though 10-15% will unlock significantly better interest rates. For a £250,000 property, that's £12,500 to £37,500. Government schemes like the Lifetime ISA can help you save faster with a 25% bonus on contributions.

Can I use a Lifetime ISA and Help to Buy ISA together?

You can hold both, but you can only use the government bonus from one scheme per property purchase. You can still use the savings from both accounts towards your deposit.

What credit score do I need to get a mortgage?

There is no single magic number. Each lender has different criteria. Generally, a higher credit score gives you access to better rates. Before applying, check your credit report (free via Experian, Equifax, or TransUnion), pay off outstanding debts, and make sure you're on the electoral roll.

How long does the buying process take?

From having an offer accepted to completion, the process typically takes 8-12 weeks. However, it can take longer if there is a chain. First-time buyers often have an advantage as they are chain-free.