If you’re thinking about buying your first home you’re probably finding the whole process of choosing the right mortgage and actually buying your ideal home rather daunting? So what do you need to know to get on to the first rung of the property ladder?

The first step is to contact us, and we will advise you on the mortgage options available to you.
In the meantime, we’ve outlined below some background information on mortgages for first time buyers that we hope you’ll find useful.

How Much Can You Borrow?

The amount of mortgage you can get depends on your affordability.

As a rough guide, a typical multiple is four times your income. This figure could be higher or lower depending upon your individual circumstances and different lenders’ criteria. All lenders will lend based on affordability and all lenders offer Affordability Calculators on their websites.

Once you add to this the amount that you can afford to pay as a deposit, you have the amount you can pay for your first property.

Some lenders offer very good deals for first time buyers, so it always worth asking us to research the market on your behalf.

Any other costs?

It is also worth remembering the additional costs, on top of your deposit and mortgage that you will be expected to pay.

For example, Stamp Duty:
You usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price above £125,000 when you buy residential property, for example a house or flat (not a buy-to-let property or second/ holiday home).

However, there are different rules if you’re buying your first home and the purchase price is £500,000 or less. You can claim a discount (relief) so you do not pay any tax up to £300,000 and 5% on the portion from £300,001 to £500,000.

You’re eligible if:

  • you, and anyone else you’re buying with, are first-time buyers

First Time Buyers:

Property or lease premium or transfer valueSDLT tax
Up to £300,000Zero
The next £300,001 to £500,0005%
Note : If the price is over £500,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before. Note the relief must be claimed in an SDLT return
see Gov site for more  https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

Non First Time Buyers:

Property or lease premium or transfer valueSDLT tax
Up to £125,000Zero
The next £125,000 (the portion from £125,001 to £250,000)2%
The next £675,000 (the portion from £250,001 to £925,000)5%
The next £575,000 (the portion from £925,001 to £1.5 million)10%
The remaining amount (the portion above £1.5 million)12%


First time buyers paying £300,000 or less for a residential property will not pay Stamp Duty Land Tax (SDLT).

First time buyers paying between £300,001 and £500,000 will pay SDLT at 5% on the amount of the purchase price in excess of £300,001

First time buyers purchasing a property over £500,000 will not be entitled to any relief and will pay SDLT at the normal rates.

The relief must be claimed in an SDLT return.

See the Stamp Duty Land Tax Calculator to work out how much Stamp Duty you’ll pay.

In addition, you will have to pay for the survey and the valuation of the property, and solicitor’s fees.

You may also have to pay an arrangement fee to the lender for the mortgage.

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First Time