Everything You Need to Know
Buying your first home is a huge milestone, but it can feel overwhelming. This guide is here to explain everything in simple, easy-to-understand language, so you can move forward with confidence.
Whether you're buying in Thame or anywhere in the UK, this guide is packed with expert advice, first-time buyer hacks, and answers to every question you might have.
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Why Choose Bright Money?
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Access to over 90 lenders and thousands of mortgage products
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Local experts who understand the market in Thame & Oxfordshire
Contact Us
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Straightforward
We simplify the mortgage process - no stress, no nonsese!
STEP 1
Understanding Your Budget & Mortgage Affordability
How Much Can You Borrow?
Lenders assess how much you can borrow based on:
1
Your income and regular outgoings
2
Your credit history and score
3
The deposit you can provide
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Deposit Requirements
Lenders assess how much you can borrow based on:
- Minimum deposit: 5% (e.g., £10,000 on a £200,000 home)
- Better mortgage rates achieved with larger deposits
- Gifted deposits from family members are allowed by many lenders
First Time Buyer Hack
Some lenders offer 100% mortgages for those with a guarantor, or can demostrate affordability by paying rent for a certain period of time.
What if I have bad credit?
You can still get a mortgage, but your options may be more limited. Some specialist lenders cater to buyers with lower credit scores.
STEP 2
Getting Mortgage Ready
Boosting Your Mortgage Approval Chances
Follow these steps to improve your chance of obtaining a FTB mortgage:
- Check your credit score and fix any errors
- Reduce debts where possible
- Avoid new credit applications before applying for a mortgage
Check the links section on our website for a free credit report – you must cancel within 30 days if you don’t want to pay (print the pdf then go to the cancel subscription section to avoid costs).
Get a Mortgage in Principle (MIP)
This is a lender’s confirmation of how much they’d be willing to lend you. It helps prove to estate agents that you’re a serious buyer.
Our advisers can provide you with one of these within minutes
First Time Buyer Hack
Ask your solicitor for regular updates to avoid delays in the process.
STEP 3
House-Hunting Checklist
Making an Offer
Follow these best practices for making an offer:
- Research house prices in Thame & surrounding areas
- Prioritise location, transport links & schools
- Book multiple viewings and take notes
- Check the Energy Performance Certificate (EPC)
First Time Buyer Hack
View properties at different times of the day to check for noise levels, traffic, and natural light.
Should I buy a new build or an older home?
New builds often come with warranties, better energy efficiency and enhanced deposit schemes, but older homes may have more space and character, bigger gardens and without the premium of a new home.
STEP 4
Making an Offer & Securing Your Mortgage
Making an Offer
Follow these best practices for making an offer:
- Research local property values
- Negotiate based on market conditions
- First-time buyers have an advantage as they aren’t in a chain
Securing Your Mortgage
Here’s how to best secure your FTB mortgage:
- Choose the right mortgage type (fixed-rate, tracker, etc.)
- Submit a full mortgage application
- Arrange for a valuation & survey
First Time Buyer Hack
Your first mortgage payment is usually higher because it includes interest from the day you move in to the end of the month.
What happens if my mortgage is declined?
Don’t panic! Your lender should tell you why. You may need to improve your credit score or find a lender with different criteria.
STEP 5
Legal & Survey Process
What Does a Solicitor or Conveyancer Do?
- Handles all legal paperwork
- Conducts searches (flood risks, planning permissions, etc.)
- Arranges building insurance (a requirement before exchanging contracts)
First Time Buyer Hack
A MIP typically lasts 60-90 days. If it expires before you find a home, you may need to reapply.
STEP 6
Exchanging Contracts & Completion
What Happens at Exchange?
- Both parties sign legally binding contracts
- You pay the deposit (usually 5-10%)
- A completion date is agreed
What happens if I pull out after exchanging contracts?
You may lose your deposit and face legal consequences, so be 100% sure before signing.
STEP 7
First-Time Buyer Schemes
The UK government offers various schemes to help first-time buyers:
- First Homes Scheme (discounted properties for key workers and first-time buyers)
- Shared Ownership (buy a share, pay rent on the rest)
- Help to Buy Equity Loan (available in Wales only, available on new builds)
- Lifetime ISA (LISA) (25% government bonus on savings, up to a maximum of £1,000 per year for first-time buyers)
First Time Buyer Hack
Some schemes can be combined for extra benefits—always check eligibility.
On clicking the above link, you will leave the regulated site of Bright Money Independent Ltd. Neither Bright Money Independent Ltd, nor Sesame Ltd, is responsible for the accuracy of the information contained within the linked site.
FAQ
for
First
Time
Buyers
What is classed as a first-time buyer in the UK?
In the UK, you are generally considered a first-time buyer if you have never owned a residential property anywhere in the world. This includes properties bought outright or with a mortgage. Some lenders and government schemes apply their own definitions, so eligibility should always be checked.
How much deposit does a first-time buyer need?
Most first-time buyers need a minimum deposit of 5% of the purchase price. However, a larger deposit of 10–15% can improve mortgage rates and lender choice. The required deposit depends on lender criteria, affordability, and credit history.
How much can a first-time buyer borrow?
Borrowing is usually based on income and affordability. Many lenders will lend around four to four-and-a-half times annual income, although this can be higher or lower depending on outgoings, credit commitments, and lender policy.
What mortgage schemes are available to first-time buyers?
First-time buyers may be eligible for schemes such as Shared Ownership, First Homes, Right to Buy, or using a Lifetime ISA. Each scheme has its own rules, price caps, and eligibility requirements.
Do first-time buyers pay Stamp Duty?
Many first-time buyers benefit from Stamp Duty relief, meaning no Stamp Duty is payable up to a certain purchase price threshold. The exact thresholds and rules are set by the government and may change.
What costs should first-time buyers budget for?
In addition to the deposit, first-time buyers should budget for legal fees, surveys, mortgage arrangement fees (if applicable), valuation costs, and moving expenses. Some costs vary depending on the lender and property type.
Can first-time buyers get a mortgage with bad credit?
It may be possible for first-time buyers with adverse credit to obtain a mortgage. Lender decisions depend on the type, age, and severity of the credit issues, as well as overall affordability and deposit size.
What documents do first-time buyers need for a mortgage?
Lenders typically request proof of identity, proof of address, recent payslips or accounts, bank statements, and evidence of where the deposit is coming from. Requirements vary by lender.
How long does the first-time buyer mortgage process take?
From offer acceptance to completion, the process usually takes around six to ten weeks. Timescales can vary depending on the lender, the property, and how quickly legal work progresses.
Should first-time buyers use a mortgage broker?
A mortgage broker can help first-time buyers understand their options, assess affordability, and identify lenders whose criteria match their circumstances. This can be particularly useful where income or credit history is non-standard.
