Key first-time buyer statistics
Around a third of homes sold in the UK are bought by first-time buyers.
The average UK house price in January 2025 stood at £268,548. This was up by 4.9% on the previous year.
The average first-time buyer deposit in 2023-24 was around £55,000, according to the English Housing Survey. And 55% of first-time buyers with a mortgage had a repayment term of at least 30 years.
The average age of a first-time buyer in the UK is 34.
How much deposit do first-time buyers need?
The amount of deposit you need depends on the lender. The minimum is usually 5% to 10% of the price of the property you’d like to buy.
For example, if the home you’re interested in costs £220,000, you might need to put at least £11,000 (5%) of your own money towards it, with the rest borrowed from a mortgage provider.
The more you can save for a mortgage deposit the better, as this will improve the amount of equity you have in your home (the proportion you own). As a result, you may be able to benefit from lower interest rates.
What help is there for first-time buyers?
There are a range of schemes designed to help first-time buyers get on the property ladder. They include:
Lifetime ISA – if you’re aged between 18 and 40 you can open a lifetime ISA and, from then on, save up to £4,000 a year into it. The government then adds a 25% bonus as long as you put the money towards your first property or your retirement (if you use it for other purposes you'll be charged a penalty).
Shared ownership – this allows you to co-own a property with a housing association, council or other organisation and pay rent on the remaining share.
First Homes scheme – available to first-time buyers in England, this offers new-build homes for 30-50% less than their market value.
Deposit Unlock – under this scheme launched by the house-building industry, you could buy a new-build home with just a 5% deposit.
How much can I borrow for a first home?
You can get an initial idea of how much you could borrow using our mortgage calculator. This is based on the information you give about the size of your deposit and income.
For a more accurate estimate, you can apply for an agreement in principle directly with a lender or through a mortgage broker.
An agreement in principle isn’t a guaranteed mortgage offer. But it will give you an indication of what you could afford to buy without undergoing a full credit check.
Not only does it mean you can search for properties within your budget, but it also shows estate agents and sellers you’re a serious buyer.
If you can’t afford the size of home you’d like to buy, you may want to hold off until you’ve saved a bigger deposit. Or you could consider moving to a different area where houses are more affordable.
How to get a first-time buyer mortgage
You’ll need to make a formal application for a mortgage. You usually do this once you’ve had an offer accepted on a house.
Mortgage providers will want to know how creditworthy you are. This means they’ll run an affordability check, looking at your income and outgoings, to make sure you can comfortably afford your monthly mortgage payments.
Your mortgage provider will ask to see:
Payslips from the past three months
Your P60 form
Tax returns or an SA302 tax calculation for the last two to three years if you’re self-employed
Statements from your bank accounts
Details of any benefits received
Recent utility bills
Proof of identity, like your passport.
The lender will also check your credit rating. If there are concerns about your outstanding debts or credit history, you may find it harder to be accepted for a mortgage or need to pay a higher interest rate.
Before you contact mortgage providers, it might be a good idea to check your credit rating with a credit reference agency to make sure everything is looking good.
It may also be useful to read our guide to first-time buyer mortgages to learn about the key stages of getting a mortgage offer, and the types available.
All applications are subject to status and lending criteria and are based on your individual circumstances. Applicants must be 18+ and a UK resident. Compare the Market Limited acts as a broker, not a lender.
Your home may be repossessed if you do not keep up repayments on your mortgage.
What are the costs involved with buying a first home?
A mortgage and deposit aren’t the only costs you have to think about when buying a new home. Additional fees can add up to another 10% on top of the house price.
Here’s a quick rundown of what these extra costs might be, to help you budget.
Home survey
After you’ve made an offer on a property, it’s a good idea to get the house checked by a surveyor to make sure it’s structurally sound. It can also be a useful bargaining tool if you need to renegotiate the price.
You can choose from three levels of home survey, depending on how extensive you need it to be. They will all highlight any urgent problems that need addressing, but the most expensive option will give you the most in-depth view of the property’s condition.
Average cost = £300-£1,500
Mortgage fees
There are mortgage costs and fees you may need to pay when you take out a mortgage.
A valuation fee is based on the value of your new home. The lender organises their own survey of the property to make sure it’s worth what you’re planning to pay for it. Some providers don’t charge a mortgage valuation fee.
Average cost = £0-£300
A mortgage arrangement fee is the cost the lender will charge you for setting up the loan. You’ll usually have the option to either pay this upfront or add it to your mortgage balance, which you’ll pay interest on.
Average cost = £500-£1,500
Legal fees
You’ll need a solicitor or conveyancer to help with the legal aspects of buying a home. This involves drawing up contracts, registering the property with HM Land Registry and organising the payment of stamp duty.
They will also carry out local searches to check whether there are any issues you need to be aware of, such as building development plans.
Average cost = £900-£1,800
Stamp duty
Stamp duty is a tax payable on property purchases above a certain price threshold.
For first-time buyers in England and Northern Ireland, you'll get a discount on stamp duty if your property costs up to £500,000 (and you'll pay nothing on the first £300,000). If the property costs over £500,000, you'll be charged the normal home-mover rate.
Scotland and Wales have their own systems.
You can find out how much stamp duty you’ll have to pay, no matter where in the UK your new home is located, with our stamp duty calculator.
What other costs might you have to budget for?
Once you’ve bought your own home, the costs don’t end there, unfortunately. So, allow for some or all of these when you’re working out how much you can afford to borrow.
Buildings insurance. This is sometimes a condition of your mortgage, and you’ll need to have it in place by the time you exchange contracts. You may also want contents insurance for your possessions.
Professional movers, unless you know someone with a van who can help you move. Make sure your stuff is protected by insurance during the move.
Buying appliances and furniture for your new home.
Maintenance work, DIY or a general spruce up of your new place.
Getting connected to a broadband provider. For more information, check out our guide to comparing broadband packages.
Paying for mail to be redirected to your new address.
The list above is not exhaustive but gives you a general idea about the sort of things you’ll need to account for. It’s a good idea to keep these costs in mind and have a contingency fund in place to cover them.
What to look out for when viewing a property
While poorly laid carpet or ugly wallpaper are things you can easily fix once you’ve settled in, the following could be potential deal-breakers:
Signs of moisture or damp. Water damage can lead to serious problems. Look for peeling wallpaper and mould on walls, ceilings and skirting boards.
Structural problems. Subsidence or movement of the foundations can be very expensive to put right. Look for sloping floors and diagonal cracks in the walls, both outside and inside.
Homes of unusual construction. Any building not of standard brick and mortar construction may be considered unusual. It may be difficult to get a mortgage and buildings insurance on a non-standard construction home.
Electrical issues. Outdated wiring and electrical defects can pose a fire hazard. Check when the fuse box was last replaced.
Issues with guttering and roof tiles. Check for loose tiles, moss growth, blocked guttering and ripped flat roof felt.
If you’re considering a leasehold property, look out for service charges, ground rent and any clauses in the lease that affect how you live in and use the property.
Other things to look out for include:
Dated fixtures and fittings
Rotten window frames
A dated boiler or heating system
Loose wiring and leaking pipes
Chipped and cracked plaster
How long it takes for hot water to come through, and whether there is good water pressure
Anti-social behaviour or noisy and disruptive neighbours
Anything that will be expensive to repair.
First-time buyer pitfalls to avoid
Rushing in to choosing a home
There can be pressure to get on the housing ladder, especially when the market is busy. But it's important to find a place you really love that ticks most of your boxes. Being clear on your must-haves can help focus your property search.
Not being realistic about what you can afford
Be sure to stick to what you can afford – and remember to factor in all the additional costs associated with buying a home such as legal fees, stamp duty and moving expenses.
Failing to research the local area
It’s important to know what the area is like where you intend to buy. For example, how convenient is it for the shops, medical services, schools and public transport? To get a proper feel for the neighbourhood, visit at different times of the day.
Taking out new credit before applying for a mortgage
If you’re likely to apply for a mortgage within the next three to six months, try to avoid taking on more debt in the meantime. A new credit card or loan, for example, could impact your credit score and reduce the amount you can borrow.
Buying your first home in 10 steps
To sum up, the process for buying a house usually goes something like this:
Save for a deposit
Work out how much you could borrow
Get a mortgage agreement in principle
Search for properties within your budget
Make an offer on a home you love
Secure a mortgage offer
Find a conveyancer or solicitor
Get a home survey done
Exchange contracts
Pick up the keys to your new home.
Compare first-time buyer mortgages
If you compare mortgages with us, we’ll show you all the types of mortgage available. These include fixed-rate mortgages or variable rate mortgages such as discounted or tracker rates.
We’ll show you how much your monthly repayments would be and the fees you would have to pay, to help you decide on a mortgage that’s right for you. Compare the Market Limited acts as a broker, not a lender.
If you’d rather speak to someone about your options, we’ve partnered with London & Country Mortgages Ltd (L&C)** to provide you with fee-free mortgage advice. Get in touch with one of their advisors here.
About London & Country Mortgages Ltd (L&C)
**London & Country Mortgages Ltd (L&C) is a multi-award winning mortgage broker with over 20 years’ experience in helping people secure their perfect mortgage. Advice is provided by L&C, who are authorised and regulated by the Financial Conduct Authority (143002).
L&C is not a part of Compare the Market Limited. Compare the Market receive a % of the commission that our partner London & Country earns. All applications are subject to lending and eligibility criteria.
L&C will not charge you a broker fee should you decide to proceed with a mortgage.
Your home may be repossessed if you do not keep up with repayments on your mortgage.
Glossary of terms for first-time buyers
APRC: Stands for annual percentage rate of charge. This is the annual cost of a mortgage over its lifetime and helps you compare rates with other providers.
Completion date: This is the point at which the purchase of the property will be finalised, and the keys are handed over to the buyer.
Conveyancing: The legal process of transferring ownership of a property from one person to another. A solicitor or licensed conveyancer will usually handle this.
Early repayment charge: A fee you might be charged by your lender for ending your mortgage deal sooner than agreed. It could either be a fixed fee or a percentage of the remaining loan.
Exchange date: This is when contracts between the buyer and seller’s conveyancers are exchanged. At this point, both parties are legally bound to complete the deal.
Freehold: Ownership of the property and the land on which it’s built. Houses are usually freehold.
Interest-only mortgage: A type of mortgage where you only pay off the interest on the amount borrowed each month. The balance is paid at the end of the mortgage term using savings or other assets.
Leasehold: Ownership of the property (but not the land it’s on) for a fixed period of time. Most flats and maisonettes are leasehold, and often include service charges and ground rent. There also tend to be clauses in the lease that affect how you live in the property.
Loan-to-value (LTV): The size of your mortgage in relation to how much the property is worth. For example, a £200,000 mortgage on a house valued at £250,000 gives you an LTV of 80%.
Repayment mortgage: A type of mortgage where you pay off both the capital and accrued interest each month. Most borrowers get repayment mortgages as they allow you to gradually build equity in your home while also paying down the debt.
FAQs
Can you buy your first home if you have bad credit?
Poor credit doesn’t necessarily put an end to your dreams of getting onto the property ladder. But if your credit rating is poor, your mortgage provider will typically ask for a large deposit.
Charges and interest rates may also be higher. If you know you’re planning on buying a house, see what you can do to improve your credit score in the meantime.
Bad credit mortgages do have one advantage though. After continuously paying on time, you should see your credit rating improve. As long as the rest of your finances are in order, you’ll probably be in a position to switch mortgages eventually.
How long does the house-buying process take?
It’s not easy to give a definitive answer because it’s different for everyone. Broadly speaking, the whole process, from starting to look for a home to moving in, could take up to six months if you’re a first-time buyer.
When do you pay the deposit?
The deposit is paid to the seller’s solicitor by your solicitor, usually before you exchange contracts. So, you’ll need to make sure you’re in a position to transfer the funds to your solicitor for this.
When do you pay stamp duty?
Your solicitor or conveyancer will usually file your return and pay the tax you owe on the day of completion and add the amount to their fees. They’ll also claim any first-time buyer relief if you’re eligible for that.
Compare the Market’s Editorial Team is made up of industry experts with decades of experience in personal finance, insurance and utilities. Each of our authors has an area of expertise, where they can share their extensive experience to help you get a better deal, by finding the right product and saving money.
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