First-Time Buyer Mortgage Guide UK (2025)
Buying your first home in 2025? Here's the realistic deposit, what schemes still exist, and the costs nobody warns you about.
A first-time buyer mortgage in 2025 needs a minimum 5% deposit — but realistically aim for 10–15% to access mainstream rates and avoid expensive 95% LTV products.
Government help still available
Lifetime ISA: pay in up to £4,000/yr and the government adds 25% (£1,000) on top, usable for a first home up to £450,000.
First Homes scheme: select new-builds sold at a 30–50% discount in some areas. Income caps apply.
Shared Ownership: buy 25–75% and pay rent on the rest. Beware service charges and resale restrictions.
Costs nobody warned you about
Stamp duty: first-time buyers pay 0% up to £300,000 and 5% on £300,001–£500,000. No relief above £500,000.
Solicitor: £1,200–£2,000 including searches.
Survey: Level 2 from £400, Level 3 from £600. Skip at your peril.
Mortgage product fee: £999–£1,499 — sometimes worth paying for a lower rate, often not.
Estimate your monthly mortgage payment based on property price, deposit, interest rate and term. Useful for both first-time buyers and remortgaging.
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