Feeling Overwhelmed About Buying Your First Home?
At Mortgagemove, we get it. Our advisors have been in your shoes—navigating the excitement and nervousness of purchasing their first home.
Buying a home is one of the most significant decisions you’ll ever make, and it’s natural to feel a bit unsure about where to begin. That’s why we’ve put together answers to some of the most common questions first-time buyers ask us.
We’re here to guide you every step of the way—from your first inquiry to the moment you collect your keys.
How Much Deposit Do I Need?
This is often the first question on any first-time buyer’s mind. The minimum deposit is typically 5% of the property’s purchase price.
However, if you can save 10%, you’ll have access to more options and potentially better mortgage rates.
Many parents are now using the equity in their homes to help their children fund deposits, so it’s worth exploring family support as an option.
How Much Can I Borrow?
Your borrowing capacity isn’t solely based on your salary. Lenders will assess your financial commitments, such as car finance agreements, loans, and credit card balances, to determine how much you can afford.
Each lender calculates affordability differently, which is where a broker like us can help. We work with over 70 lenders, comparing their offers to find the right fit for your needs.
Often, the size of your deposit has a greater impact on affordability than the amount you’re eligible to borrow.
Will I Need to Pay Stamp Duty Land Tax (SDLT)?
Stamp Duty Land Tax is a tax applied to property purchases above a certain price in England and Northern Ireland. Currently, first-time buyers don’t pay SDLT on properties valued at £425,000 or less.
As of 1st April 2025 the Stamp Duty Land Tax is changing, meaning that first-time buyers will not pay SDLT on properties valued at £300,000 or less.
For further information about Stamp Duty Land Tax, we advise you visit the GOV website – https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
What Other Costs Should I Budget For?
When planning your budget, remember to account for additional expenses, such as:
- Mortgage fees: Some products include fees, though these can often be added to your loan.
- Surveys: While basic valuations are usually free, a more detailed survey (especially for older properties) could cost between £500–£1,500.
- Conveyancing: Legal fees for straightforward purchases typically cost around £1,500.
- Moving costs: Whether you hire a removal company or rent a van, it’s wise to shop around for quotes.
How Can I Prepare to Apply for a Mortgage?
Preparation is key. Here are some steps to get yourself mortgage-ready:
- Know your income, including overtime and bonuses.
- Understand your debts—monthly payments and outstanding balances.
- Ensure you’re registered on the electoral roll and that all your accounts reflect the same address.
- Avoid applying for new credit before your mortgage application.
- Obtain a copy of your credit report and address any discrepancies.
- Make timely payments on existing credit commitments and keep balances manageable.
We offer fee-free advice to help you prepare for your mortgage application. Every situation is unique, and we’re here to guide you through yours.
Ready to Take the First Step?
We hope these answers have provided some clarity, but remember, no question is too small or unimportant. Whether you’re eager to begin your home-buying journey or just need someone to guide you through the details, we’re here to support you every step of the way. Get in touch with us today, and let’s make your dream of homeownership a reality!
Phone us directly on 0333 005 0333,
or text ADVICE to 82228.
or email us at [email protected]
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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Mortgagemove is a trade name of Nicholas Financial Limited, which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.
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Approved by The Openwork Partnership on 27/01/25