First-Time Buyer

deanhwm
Aug 9
2 min read

First-Time Buyer Mortgages: Your Guide to Getting on the Ladder in 2025

The dream of owning your first home is an exciting one, but navigating the mortgage market can feel a bit overwhelming. With changes in the market and various government schemes, it’s important to have up-to-date information. As your friendly, local mortgage adviser, here's what you need to know about getting your first mortgage in 2025.

1. Prepare Your Finances

Lenders look closely at your financial habits. Before you apply for a mortgage, it’s a good idea to:

Check Your Credit Score: Use a service like Experian or ClearScore to see your credit report. A healthy score shows lenders you’re reliable.
Tidy Up Your Accounts: Avoid using your overdraft, cancel subscriptions you don’t need, and try to avoid large impulse purchases. Lenders will be looking at your bank statements for signs of financial stability.
Save, Save, Save: A larger deposit will not only reduce the amount you need to borrow but can also give you access to lower interest rates.

2. Understand Your Mortgage Options

While a 5% deposit is often the goal, a larger deposit can give you more choice. Here are some of the key mortgage products and schemes available:

95% Loan-to-Value (LTV) Mortgages: These mortgages are designed for buyers with a smaller deposit. The government has introduced a new, permanent Mortgage Guarantee Scheme in July 2025 to encourage lenders to offer these products, making it easier to buy with a 5% deposit.
Lifetime ISA (LISA): This savings account is a fantastic way to boost your deposit. The government adds a 25% bonus (up to £1,000 per year) on your savings, up to a maximum of £4,000 a year.
First Homes Scheme: This scheme allows you to buy a new-build home for a significant discount (30-50% less than its market value) if you meet certain criteria.

3. The New Stamp Duty Rules

It's important to be aware that as of April 2025, the stamp duty relief for first-time buyers has reverted to a threshold of £300,000. This means you will pay stamp duty on any amount over that. Understanding this will help you budget accurately for the full cost of buying a home.

4. The Power of a Mortgage Adviser

The mortgage market can be a bit of a maze, especially for first-time buyers. As an independent mortgage adviser, my job is to:

Find the Best Deals: I can search the entire market to find a mortgage that’s perfectly suited to your needs and circumstances.
Simplify the Process: I will handle the paperwork and liaise with lenders on your behalf, so you can focus on finding your dream home.
Provide Expert Guidance: I’ll be with you every step of the way, offering advice on affordability, government schemes, and the application process.

Ready to take your first step?

Don't go it alone. Get in touch with us today for a friendly, no-obligation chat, and let's work together to get you into your first home.