First-Time Buyer Advice

According to research, only 46% of First-Time Buyers were successful in securing a mortgage.
(Source: Shawbrook, Home-A-loan 2025 report, November 2025)

However, the same research showed that only around 22% (of the 2,010 surveyed) used a mortgage adviser to apply for a mortgage, which is way below the market-wide 91% who are expected to turn to brokers, such as us, in 2026.
(Source: IMLA, June 2025)

Adviser Help

And, amongst those who did use a broker, the levels of satisfaction were overwhelmingly high:
– 97% said that brokers helped them to identify the right lender.
– 97% valued their specialist knowledge.
– 95% credited them with simplifying paperwork and admin.

Outside of this survey, we also understand where your mortgage application may fail – such as missed payments, a volatile income stream, spending on the wrong things, and a bad credit score (see checkmyfile.com). From here we can look at how to best tackle these issues, along with meeting the affordability criteria.

Affordability & Income Multiples

With regard to affordability, the strict borrowing criteria may have become less strict, as the industry regulator, the Financial Conduct Authority, is supportive of loosening up the rules.

Elsewhere, the income multiple rule has also been relaxed. The rules state that only 15% of new loans can exceed 4.5 times salary, but the applicable threshold has been lifted from £100m of lending to £150m – which specifically benefits around 80 smaller lenders. Within that 15%, there are some deals, in the overall marketplace, where the loan to income sits at five, six, or even seven times!

Building up, or securing a Deposit

This is often the main stumbling block, and could be viewed as a two-speed market.

The average First-Time Buyer deposit from those that are unassisted is £60,741 (in itself, a sizeable amount). The comparable average deposit for those that have benefited from assistance (such as the Bank of Mum & Dad + Grandparents) is £118,073 – which equates to 37% of the average purchase price, thereby opening up the better deals.

Understandably, the deposit required does vary massively throughout the UK. For example, the average unassisted deposit for the North East of England is £29,918.
(Source: UK Finance, Trends in the Economy and Lending, May 2025)

However, don’t be daunted, if you feel that saving a sizeable deposit might be a problem for you. An alternative option is to consider deals that require a 5% deposit (or less). With the added benefit that it may get you onto the property ladder sooner.

The Budget

There was very little within the Budget that was directly targeted at helping First-Time Buyers.

– No positive changes to Stamp Duty (which is applicable in England and N. Ireland).

– No major referencing to the 1.5m new homes that are projected to be built in the 5-year period of this Government, aside from the OBR saying that this will largely occur from 2027-28.

– However, it was stated that the Government will publish a consultation document in early 2026 on the implementation of a simpler ISA product to support First-Time Buyers who want to build up a deposit.

Talk to us

The whole mortgage application process may come across as being quite complex, time-consuming, and possibly confusing. Additionally, most of you will lead very busy lives, and this process might be seen as an added problem, if handled alone.

That’s where we come in. If this route is of interest for you (or a family member), then please get in touch to find out more. And you can take comfort from the fact that we operate in this sector day-in day-out, plus have the qualifications and expertise to deliver advice that meets your needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.