Question 1

What's the minimum deposit for first time buyers?

Accepted Answer

The absolute minimum is 5% (95% LTV), though options are more limited at this level. 10% deposit gives access to better rates and more lenders. Some specialist products allow 0% deposit with guarantor support.

Question 2

Can I use a gifted deposit?

Accepted Answer

Yes, most lenders accept gifted deposits from immediate family members. The gift must be non-repayable, and you'll need a gifted deposit letter. Some lenders accept gifts from non-family members, though this is less common.

Question 3

How do guarantor mortgages work?

Accepted Answer

Guarantor mortgages use a family member's savings or property as additional security, allowing you to borrow more or with a smaller deposit. The guarantor doesn't own the property but takes on liability if you default.

Question 4

Am I eligible for government schemes?

Accepted Answer

Shared Ownership allows you to buy 25-75% of a property. First Homes offers 30-50% discount on new builds. Eligibility depends on income limits (typically under £80k outside London), first-time buyer status, and local authority requirements.

Question 5

Do first time buyers pay stamp duty?

Accepted Answer

First time buyers pay no stamp duty on properties up to £425,000 and reduced rates on properties up to £625,000. Properties over £625,000 don't qualify for any first time buyer relief. These thresholds apply until 31 March 2025.

First Time Buyer Mortgage Criteria

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