The advice first-time buyers receive is often outdated, oversimplified, or just wrong. Know what's true before you apply.
Incorrect information about mortgages can lead people to delay unnecessarily (waiting until they have a 20% deposit when 10% would have been fine), pay more than needed (staying on a standard variable rate because they think switching is complicated), or miss products they're eligible for (Help to Buy, First Homes Scheme, shared ownership).
The mortgage market changes frequently. What was true three years ago may not be true today. Always verify current products and rates with a whole-of-market broker.
The minimum deposit for most residential mortgages is 5%. 95% LTV mortgages exist and are available to first-time buyers - including via the Mortgage Guarantee Scheme. A 5% deposit comes with higher rates, but it gets you on the ladder. The decision to save longer for a larger deposit is about rate savings vs. time in the market, not about eligibility.
Self-employed applicants can absolutely get mortgages. Lenders will typically want 2–3 years of accounts or tax returns (SA302 forms from HMRC). The key is demonstrating consistent or growing income. Some lenders are more self-employment-friendly than others - a whole-of-market broker is essential here.
Fixed rates provide certainty. Tracker and variable rates can be cheaper - especially when the Bank of England base rate is falling. The right choice depends on your risk tolerance, how long you plan to stay in the property, and the current rate environment. Neither is universally better.
A MIP is an indicative assessment based on the information you provide. The full mortgage application involves a deeper credit check, verification of income documents, and a lender valuation of the property. The full offer can differ from - or be declined after - the MIP. Keep your financial behaviour consistent between MIP and application.
Your bank is one lender out of dozens. Going directly to your bank means you only see their products - not the whole market. A whole-of-market broker has access to hundreds of products and can often find rates unavailable directly. Your bank may not even be competitive for your specific situation.
Remortgaging is straightforward and often free - many deals include free legal work and no valuation fee. At the end of your fixed term, if you don't remortgage, you'll move onto the lender's Standard Variable Rate (SVR), which is almost always higher. Setting a calendar reminder 3–4 months before your fixed term ends costs nothing and could save hundreds per month.
Student loan repayments affect your affordability assessment (they reduce net income), but student loans are not treated the same as other debts. They don't appear on your credit file and lenders factor them in as a deduction from income rather than a liability. They will affect how much you can borrow, but they don't prevent you from getting a mortgage.
| Scheme | How it works | Eligibility | Relevant to us? |
|---|---|---|---|
| Lifetime ISA (LISA) | 25% government bonus on up to £4,000/year. Must be used for first home under £450k or retirement. | Under 40 when opened, must hold 12 months before use | |
| First Homes Scheme | New-build homes at minimum 30% discount for first-time buyers | Income cap of £80k (£90k in London), local connection may apply | |
| Shared Ownership | Buy 10–75% of a property, pay rent on the rest. Buy more shares over time (staircasing). | Household income under £80k (£90k in London) | |
| Mortgage Guarantee Scheme | Government guarantee enables 95% LTV mortgages on properties up to £600k | First-time buyers and home movers. Not new-build only. |