The First Home scheme is a government incentive aimed at helping first-time buyers and key workers get onto the property ladder. It offers a discount typically around 30%, however in some cases up to 50% of the on the market price of a new-build property, making it more affordable for those just starting out.
A 95% mortgage allows you to borrow up to 95% of the value of the property you want to buy, which is helpful if you have a small deposit - a minimum of 5%. Mortgage loans like this are also called a 95% 'Loan to Value' mortgage.
According to HMRC, to be classed as a first-time buyer, you “must not, either alone or with others, have previously acquired a major interest in a dwelling or an equivalent interest in land situated anywhere in the world”. So, if you've never owned a property, you're a first-time buyer.
However, if previously you owned a property with a partner, and through divorce or separation, you are now no longer a homeowner, it is not uncommon for you to be considered a first time buyer again by some lenders.
In 2024, first-time buyers benefited from generous reliefs: no stamp duty on homes up to £425,000, and reduced rates on properties up to £625,000. But from April 2025, those thresholds have been cut back: 0% SDLT now applies only to homes priced up to £300k.
As a first-time buyer, you may find that some providers offer mortgages with fairly low interest rates that are only available to people who have never owned a home before. You may also be able to get a lower rate if you agree to a longer fixed term. Banks will often offer lower interest rates for longer fixed terms.
How much do I need to earn to get a mortgage of $250,000 in the UK?
What you can borrow is based on your salary. Most lenders will loan around 4 and 4.5 times your income. You'd need an annual income between £50,000 and £62,500 to be approved for a £250,000 mortgage. This is above the average UK annual salary, currently £37,430 (August 2025).
Marketing your property to the first-time buyer market has huge benefits as a seller, including: There's no chain: Every seller wants to reach the end of a chain, especially if you're buying a new home yourself. First-time buyers are normally living at home or renting, so they have no chain behind them.
For first-time buyers, the thresholds at which you start paying Stamp Duty are changing: Reduced nil-rate band: Currently, you don't pay Stamp Duty on the first £425,000 of a property's value, but this will reduce to £300,000 from April 2025.
A 95% mortgage, also known as a 95% loan-to-value (LTV) mortgage, is a mortgage to purchase a property with a small deposit (at least 5% but less than 10% deposit of the purchase price). Your deposit is the amount of money that you need to put into the mortgage to make up 100% of the final purchase price.
The First Home scheme is a government incentive aimed at helping first-time buyers and key workers get onto the property ladder. It offers a discount typically around 30%, however in some cases up to 50% of the on the market price of a new-build property, making it more affordable for those just starting out.
Can I get a mortgage with no deposit? Yes, but it can be tricky. No deposit mortgages are no longer widely available, although some lenders do offer them. If you need a 100% mortgage it can be a good idea to talk to a mortgage broker who can look at all the mortgages available to see if any are on offer.
As a first-time buyer, you are entitled to stamp duty relief when you purchase a property. As of September 2022, first-time buyers don't have to pay any stamp duty for properties with a value of £425,000 or less. If the property is valued between £425,000 and £625,000, you will be required to pay 5% on the remainder.
As mentioned above, providing both of you haven't owned a home before you'll be fine, but if one of you has, then you will not be eligible. The same rules apply for anyone lucky enough to have their property bought for them by their parents or anyone else.
What is First Homes? A Government-backed scheme designed to help first time buyers own their own home in Greater London. Under the scheme, homes are offered for sale with a discount of at least 30% of market value.
Do I pay stamp duty if I sell my house and buy another?
You do not pay stamp duty when you sell your house but, should you be selling a house at the same time as buying, you will need to factor in that stamp duty will be payable on the property you are purchasing. Although, sometimes, you can find yourself exempt from stamp duty, more of which to come later.
What if I'm a first time buyer but my partner isn't?
Do I have to pay stamp duty if my partner is a First Time Buyer but I'm not? If you buy a property with someone who is not a First Time Buyer, you will have to pay stamp duty.
Some high-street banks and challenger banks will offer 100% mortgages. However, they'll tend to attach conditions to give the lender additional security, should the homeowner start struggling financially. The most common types of 100% mortgages are guarantor mortgages and family-deposit mortgages.
If you're coming off a 2 year fixed rate mortgage, the good news is that mortgage rates are now lower than 2 years ago. The average 2 year fixed rate mortgage in August 2023 was 6.85%. By comparison, the average 2 year fixed rate mortgage in August 2025 is 4.52%.
There isn't a specific credit score you need for a mortgage, and that's because there isn't just one credit score. When you make an application for a mortgage or other type of credit, lenders work out a credit score for you.
