First-time buyers

Individually, yes; as a couple, no. While you personally retain your status for things like your Lifetime ISA, for the purpose of a joint mortgage and Stamp Duty, the Government treats you as a single unit. If one person has owned property before, the whole transaction loses its "first-time buyer" status.

Do we still get Stamp Duty relief?

Unfortunately, no. To qualify for first-time buyer relief in England and Northern Ireland (where you pay 0% tax on the first £300,000), all purchasers must be first-time buyers.

• As of April 1, 2025, the threshold for standard buyers has reverted to £125,000.
• This means you will likely pay the standard residential rates of Stamp Duty on any property priced above that amount.

No, you will not be able to get a first-time buyer residential mortgage and then rent it out. First-time buyer mortgages are for people who will live in the property as their main residence.

If you are going to buy a property that you wish to rent out and not live in, you will need to apply for a buy-to-let mortgage.

Yes, it is often still possible to get a mortgage with a lower credit score, though your options may be different. We also recommend using services like CreditLadder who we work with to report your rent payments and help build your credit history before applying.

For first-time buyers in England and Northern Ireland, Stamp Duty (SDLT) is a significant factor in budgeting because you are often eligible for first-time buyers’ relief. However, the rules for this relief changed on April 1, 2025, significantly lowering the thresholds. Find out more on Stamp Duty for first-time buyers.

The amount you can borrow depends on your annual income, your outgoings, and your credit score. Generally, lenders may offer around 4 to 4.5 times your annual income, but this varies. By speaking to a Mortgage Advice Bureau adviser through us, you can search thousands of mortgages to find a lender that fits your specific financial situation.

Most lenders usually require a deposit of at least 5% to 10% of the property's value. However, a larger deposit can often give you access to better interest rates. If you are struggling to save, our Lifetime ISA is designed to help first-time buyers aged 18-39 boost their savings with a 25% Government bonus.

Typical costs that may incur when buying a house include:

• Conveyancing fees: payment for your solicitor’s time and expertise in handling the legal aspects of buying a property. Find out more on conveyancing and home surveys.
• Search fees: costs paid to local authorities to check for things like planning issues, flood risks, or local mines.
• Mortgage valuation: a basic inspection required by the lender to confirm the property is worth the price you’re paying.
• Land registry fees: the fee paid to the government to register you as the new legal owner.
• Electronic transfer fee: a small charge for the secure transfer of large sums of money between banks and solicitors.
• Stamp Duty: a Government tax that applies if your property price exceeds specific thresholds (even with first-time buyer relief).

View more information on house buying costs.

Here is a simple checklist of what lenders might ask for and you may need to have ready:

1. Who you are (ID and address)

Lenders just need to make sure you are who you say you are.

• Photo ID: your current Passport or driving licence.
• Proof of where you live: two recent documents (less than 3 months old) like a utility bill or a bank statement.
• The electoral roll: make sure you're registered to vote at your current address it’s the quickest way for them to verify you!

2. How much you earn (income)

The bank wants to see that you have a steady stream of money coming in.

• If you’re employed: your last three months of payslips and your most recent P60 (the summary your job gives you at the end of the tax year).
• If you’re self-employed: usually your tax returns (SA302s) from the last 2 years.

3. How you spend (bank statements)

Lenders will ask for your last three to six months of bank statements. They aren't judging your coffee habit! They just want to see:

• Your salary being paid in.
• That you can comfortably afford your future mortgage payments alongside your current bills.

4. Where your savings deposit came from

You’ll need to show how you saved up your deposit.

• Your own savings: statements showing the money growing over time.
• Help from family: if a relative is gifting you money, the lender may need them to sign a gifted deposit letter confirming it’s a gift and doesn’t need to be paid back

Quick tips 

• No app screenshots: lenders usually need official PDF versions of your statements. You can usually download these easily from your online banking portal.
• Tidy up your accounts: in the three months before you apply, try to avoid things like unarranged overdrafts or lots of gambling transactions, as these can be red flags for some lenders.

A decision in principle (also called a mortgage in principle) is a statement from a lender saying that, in theory, they would lend you a certain amount. It’s not a full mortgage offer, but having one shows estate agents that you are a serious buyer and ready to make an offer on a home.