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Buying your first home is one of the most exciting — and most complex — financial decisions you will ever make. The mortgage market is vast, the terminology can be bewildering, and the stakes are high. P10 Financial Group is here to make it straightforward.
We provide clear, independent, whole-of-market mortgage advice for first-time buyers across the UK — from initial conversations about what you can afford, through to Agreement in Principle, full application, and the day you collect your keys. We explain everything in plain language, we access every available product and lender, and we are with you at every step of the process.
Whether you are buying alone or with a partner, working for an employer or running your own business, purchasing with a 5% deposit or a larger one, in London or anywhere else in the UK — we have the expertise and the access to find the right mortgage for your first home.
First-time buyers face a set of challenges that are unique to their position in the market. Unlike home movers, you have no existing equity to bring to the table and no track record as a mortgage borrower. You may be working with a smaller deposit, navigating the market for the first time, and making decisions without the benefit of having done it before.
The consequences of poor mortgage advice at this stage are long-lasting. An unsuitable product can cost thousands of pounds over the initial fixed term, restrict your ability to move or overpay, or leave you exposed to rate changes at the wrong moment. Getting it right from the start is not just valuable — it matters financially for years to come.
P10 Financial Group gives first-time buyers access to the whole mortgage market, the expertise to navigate it, and the support to understand every decision they are making — with no pressure, no jargon, and no hidden agenda.
Our service for first-time buyers covers everything from your very first question to legal completion — and beyond. Here is what we provide:
• A clear explanation of how mortgages work, what the different product types mean, and what you can realistically expect to borrow
• An honest assessment of how much you can borrow based on your income, your deposit, and your financial commitments
• A whole-of-market product search — every lender, every product, compared on rate, fees, and total cost
• An Agreement in Principle (AIP) arranged quickly to support your property search and offer-making
• Guidance on deposit sources — including gifted deposits, Lifetime ISA proceeds, and Help to Buy equity loans
• Advice on Government schemes available to first-time buyers, including Shared Ownership
• Full mortgage application management — we handle the paperwork and liaise with the lender on your behalf
• Coordination with your solicitor throughout the legal process to ensure smooth progression to exchange and completion
• A remortgage review built into our relationship — when your initial deal expires, we are ready to act
One of the most common questions first-time buyers ask is how much deposit they need — and where it can come from. The good news is that the options are broader than many buyers realise.
The most straightforward deposit source. Lenders will ask for bank statements showing the build-up of savings over time — typically three to six months of statements. A clear savings history demonstrates financial discipline and is viewed favourably by lenders.
Many first-time buyers receive a gift from parents or other family members to supplement or fund their deposit. Gifted deposits are accepted by most lenders, provided they are accompanied by a signed gifted deposit letter confirming the funds are a non-repayable gift, and bank statements showing the source of the funds. P10 Financial Group advises on the documentation required and identifies lenders whose approach to gifted deposits is most appropriate.
The Lifetime ISA allows eligible savers aged 18 to 39 to save up to £4,000 per year towards a first home purchase, with the Government adding a 25% bonus — up to £1,000 per year. LISA funds can be used towards a first home purchase of up to £450,000. The funds must have been held in the LISA for at least 12 months before use. P10 Financial Group advises on how LISA funds interact with your mortgage application and which lenders accept them as a deposit source.
The Help to Buy: Equity Loan scheme, which provided a Government equity loan of up to 20% (40% in London) to first-time buyers of new-build properties, is now closed to new applications in England. However, buyers who previously accessed the scheme may be managing an existing equity loan alongside their mortgage. P10 Financial Group advises on mortgages for borrowers with existing Help to Buy equity loans.
Shared Ownership allows first-time buyers to purchase a share — typically between 10% and 75% — of a property and pay rent on the remainder. This reduces the deposit and mortgage required, making homeownership more accessible in high-cost areas. Shared Ownership mortgages are a specialist product and require lenders experienced in this structure. P10 Financial Group arranges Shared Ownership mortgages and advises on the full implications of the scheme.
Some lenders offer products where a family member's savings or property can be used to support a first-time buyer's mortgage — either as a guarantor for the loan or by depositing savings into a linked account that acts as security. These products allow buyers to purchase with a smaller deposit than would otherwise be required. P10 Financial Group has access to the lenders who offer these products and can advise on whether they are appropriate for your circumstances.
“On a £300,000 first-time buyer mortgage over a 5-year fixed term, a rate difference of 0.25% equates to approximately £3,750 in additional interest. Choosing the right product and lender combination — including arrangement fees — can save significantly more than that.”
Your maximum borrowing as a first-time buyer depends on several factors that lenders assess individually. Understanding these factors helps you approach your property search with a realistic budget in mind.
| Factor | How It Affects Your Borrowing |
|---|---|
| Income | Most lenders apply an income multiple — typically 4 to 4.5 times your gross annual salary. Some specialist lenders will go higher for certain professions or income levels. For joint applications, both incomes are assessed, usually combined. |
| Deposit Size | A larger deposit reduces the loan-to-value (LTV) ratio, which typically unlocks lower rates and increases the range of lenders available to you. Most lenders require a minimum 5% deposit, though the best rates are available at 75% LTV (25% deposit) or below. |
| Existing Commitments | Regular financial commitments — car finance, personal loans, credit card balances, student loans — reduce the amount lenders are willing to lend. Clearing existing debts before applying can meaningfully increase your maximum borrowing. |
| Employment Type | Employed applicants are assessed on their salary. Self-employed applicants are assessed on profits or total director remuneration, typically requiring two to three years of accounts or tax returns. Contractors are assessed on day rate or annual earnings. |
| Credit History | A strong credit history broadens the range of lenders available to you and improves the rates you can access. A limited or impaired credit history narrows your options, though specialist lenders can accommodate many situations mainstream lenders cannot. |
| Outgoings and Lifestyle | Lenders run an affordability assessment based on your declared monthly outgoings as well as your income. Reducing unnecessary regular spending in the months before application can improve your affordability score. |
The mortgage market can feel overwhelming, but the key decisions are straightforward once they are explained clearly. Here is what every first-time buyer needs to understand:
| Decision | Option A | Option B |
|---|---|---|
| Repayment method | Repayment — monthly payments reduce both interest and capital; property fully owned at end of term | Interest-Only — monthly payments cover interest only; full loan balance due at end of term (limited availability for FTBs) |
| Rate type | Fixed Rate — your interest rate is locked for a set period (typically 2, 3, or 5 years); complete payment certainty | Tracker / Variable — rate moves with the Bank of England base rate; payments can rise or fall |
| Fixed term length | Short fix (2 years) — lower initial rate, more flexibility to remortgage sooner; exposed to rate movements sooner | Long fix (5 years+) — higher certainty over a longer period; protects against rate rises; early repayment charges if you exit early |
| Overpayments | Standard product — typically allows 10% overpayment per year; early repayment charges beyond this | Flexible / Tracker — often allows unlimited overpayments; useful if income is variable or rising |
| Fee structure | Low/no fee — slightly higher rate but no large upfront arrangement fee; better for smaller mortgages | Fee product — lower rate with arrangement fee (typically £999 to £1,999); often better value on larger mortgages |
P10 Financial Group explains each of these choices in plain language and makes a clear recommendation based on your circumstances — the size of your mortgage, your income stability, your plans for the property, and the current rate environment. You will always understand exactly why we are recommending what we are.
Many first-time buyers focus on the deposit and the monthly mortgage payment — and are surprised by the other costs involved in a property purchase. P10 Financial Group ensures you understand and plan for every cost from the very beginning, so there are no surprises on completion day.
| Cost | Typical Range | Notes |
|---|---|---|
| Deposit | 5% to 25% of purchase price | The minimum is 5%; larger deposits unlock better rates and lower monthly costs. |
| Stamp Duty Land Tax (SDLT) | 0% on first £425,000 for FTBs (England/NI) | First-time buyers pay no SDLT on the first £425,000 and 5% on the portion from £425,001 to £625,000. No relief above £625,000. Rates differ in Scotland and Wales. |
| Solicitor / Conveyancing Fees | £1,500 to £3,000+ | Covers the legal work of transferring ownership. Varies by property value and solicitor. |
| Mortgage Arrangement Fee | Nil to £2,000 | Some products carry no fee; others charge up to £2,000. P10 models total cost including fees. |
| Property Survey | £400 to £1,500+ | A HomeBuyer Report or Full Structural Survey — distinct from the lender's mortgage valuation. Strongly recommended. |
| Mortgage Valuation | Often free or £150 to £500 | Required by the lender; often offered free as a mortgage incentive. Does not replace an independent survey. |
| Buildings Insurance | Varies — from c.£150 per year | Required by your lender from exchange of contracts. Contents insurance is separate and optional but advisable. |
| Removal Costs | £300 to £2,000+ | Depends on volume of belongings and distance. |
| Initial Furnishing / Works | Variable | Budget for any immediate work, fixtures, or furnishing the property requires. |
As a guide, most first-time buyers should budget for costs beyond the deposit of approximately £3,000 to £6,000, depending on the property value, the legal complexity, and the survey level chosen. P10 Financial Group provides a personalised cost breakdown as part of the initial advisory process.
Step 1 — Initial Consultation
We begin with a conversation about your situation: your income, your savings, your financial commitments, and your property goals. We explain how much you can borrow, what deposit you need, and what the buying process looks like from here. There is no charge for this initial conversation and no obligation to proceed.
Step 2 — Agreement in Principle
Once you are ready to begin your property search, we arrange an Agreement in Principle (AIP) from the most appropriate lender. This confirms in principle how much that lender is willing to lend you. Estate agents take AIPs seriously — having one in place strengthens your position when making an offer and shows sellers you are a credible, prepared buyer. We advise on which lenders use soft credit searches for AIPs, which do not affect your credit score.
Step 3 — Property Search and Offer
With your AIP in place, you can search for properties with confidence in your buying power. When you find a property and have an offer accepted, let us know immediately — we will begin the full mortgage process without delay. Speed matters in a competitive market.
Step 4 — Full Mortgage Application
We carry out a whole-of-market product search based on the specific property you are buying, your final purchase price, and the deposit you are committing. We present you with a clear recommendation — the best product for your circumstances — and submit the full application on your behalf. We gather and package all required documentation: payslips, bank statements, proof of deposit, identification, and anything else the lender requires.
Step 5 — Valuation and Mortgage Offer
The lender arranges an independent valuation of the property to confirm it is worth the amount being lent. We liaise with the lender's underwriting team throughout, answering any queries and providing additional information as required. Once the lender is satisfied, they issue a formal mortgage offer — a binding commitment to lend on the terms agreed.
Step 6 — Exchange and Completion
Your solicitor handles the legal process — title searches, draft contracts, and eventual exchange of contracts, at which point the purchase becomes legally binding and you pay your deposit to your solicitor. Completion follows — typically one to four weeks after exchange — when the mortgage funds are released, the balance is paid to the seller's solicitor, and you receive the keys to your first home.
Several Government-backed schemes exist to support first-time buyers in getting onto the property ladder. P10 Financial Group advises on which schemes are currently available, whether you are eligible, and how they interact with your mortgage options.
| Scheme | How It Works | Status |
|---|---|---|
| Stamp Duty Relief for FTBs | First-time buyers in England and Northern Ireland pay no Stamp Duty on the first £425,000 of a purchase price, and 5% on the portion between £425,001 and £625,000. No relief applies above £625,000. Scotland and Wales have equivalent but different relief schemes. | Available |
| Lifetime ISA (LISA) | Save up to £4,000 per year from age 18 to 39; the Government adds a 25% bonus (up to £1,000/year). Funds must be used for a first home purchase of up to £450,000 or held until age 60. Withdrawal for other purposes incurs a penalty. | Available |
| Shared Ownership | Purchase a share (typically 10%–75%) of a property and pay subsidised rent on the remainder. Shares can be purchased | Available |
| First Homes Scheme | Provides newly built homes at a discount of at least 30% below market value to eligible first-time buyers, key workers, and local residents. Discount is retained when the property is resold. Availability depends on local authority and developer participation. | Available in select areas |
| Mortgage Guarantee Scheme | Enables lenders to offer 95% LTV mortgages to buyers with a 5% deposit, backed by a Government guarantee. Available on properties up to £600,000 for first-time buyers and home movers. | Check current availability |
| Help to Buy Equity Loan | Provided a Government equity loan of up to 20% (40% in London) for new-build purchases, enabling buyers to access mortgages with a 5% deposit. Available in various forms across the devolved nations. | Closed in England — check Wales/Scotland |
Scheme availability, eligibility criteria, and terms change over time. P10 Financial Group provides up-to-date guidance on which schemes are active and accessible, and advises on how to use them most effectively alongside your mortgage.
• No jargon — we explain everything clearly so you understand every decision you are making
• Whole-of-market access — every lender, every product, not just a limited panel
• Fully independent advice — we are not tied to any lender and have no incentive to recommend one product over another
• Honest assessment of what you can borrow — based on real lender criteria, not optimistic estimates
• Fast Agreement in Principle — we get you market-ready quickly so you can make competitive offers
• Expert handling of complex first-time buyer situations: self-employment, gifted deposits, Lifetime ISA, Shared Ownership
• Full application management — we handle the paperwork and chase the lender, not you
• Dedicated advisor throughout — the same person from first call to completion
• No pressure — if now is not the right time to buy, we will tell you honestly
FCA-regulated, independent advice with the full protection of UK financial regulation
Contact us to arrange a confidential, no-obligation consultation with one of our specialist advisors.
