This FAQ addresses common questions first-time buyers in the UK have about purchasing their first home, mortgages, and financial planning.
1. How much deposit do I need?
- Typically 5%–20% of the property price.
- Larger deposits may secure better mortgage rates.
- Consider using a Lifetime ISA (LISA) or Help to Buy schemes if eligible.
2. What mortgage options are available for first-time buyers?
- Fixed-rate mortgages provide predictable monthly payments.
- Variable or tracker mortgages can change with interest rates.
- Offset mortgages link savings to reduce interest costs.
- Interest-only mortgages require careful planning.
3. Can I get a mortgage with a poor credit score?
- A poor credit score may limit mortgage options.
- Improve your score by paying bills on time, reducing debt, and registering on the electoral roll.
- Some lenders specialise in mortgages for those with low or impaired credit.
4. What is stamp duty and do I have to pay it?
- Stamp Duty Land Tax (SDLT) is a tax on property purchases in England and Northern Ireland.
- First-time buyers may get relief on properties up to £425,000.
- Rates vary based on property price and type.
5. What other costs should I budget for?
- Solicitor/conveyancer fees.
- Property surveys.
- Removal costs.
- Home insurance and ongoing utilities.
- Consider a contingency fund for unexpected expenses.
6. How do I find out how much I can borrow?
- Use mortgage calculators or speak with a mortgage broker.
- Lenders consider income, outgoings, debts, and credit score.
- Obtain a mortgage in principle to strengthen offers.
7. What first-time buyer schemes are available?
- Help to Buy Equity Loan (England only).
- Lifetime ISA for saving towards a first home.
- Shared Ownership schemes.
- Availability and eligibility vary by region.
8. How long does the homebuying process take?
- Typically 8–12 weeks from offer to completion, but can vary.
- Delays may occur due to surveys, legal work, or mortgage processing.
9. Do I need home insurance?
- Buildings insurance is usually required by mortgage lenders.
- Contents insurance protects your personal belongings.
- Combined policies are often cost-effective.
10. What happens if I want to move before I’ve finished my mortgage?
- Check your mortgage terms for early repayment fees.
- Consider portability of mortgage or selling the property.
- Speak with your lender before making decisions.
This FAQ complements other first-time buyer resources such as Step-by-Step Homebuying Process, Mortgage Types Explained, and Deposit & Saving Guide.
