First time buyer guide: Buying your first home 

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Welcome to Share to Buy

There’s a lot to get your head around when buying your first home. Simply knowing where to start can be confusing. Even more so when you don’t know anything about the process, support schemes or where to find affordable homes for first time buyers.

If you’re looking for specific information, use these links to jump to key sections of our first time buyer guide: First time buyer guides | What is a first time buyer? | Step by step guide to buying your first home | Schemes and support for first time buyers | How Share to Buy can help you find eligible homes | Financial advice | First time buyer FAQs | Explore homes

At Share to Buy, we’re here to help you every step of the way. So, first things first: answering the question, ‘Am I really a first time buyer?’

What is a first time buyer?

Essentially, a first time buyer is someone who’s buying their first home and has never owned a residential property in the UK or abroad before.

But there are a few nuances to the definition that may affect whether you actually qualify as a first time buyer.

Why your buyer status matters

It’s important to understand your buyer status, as it can significantly impact the costs of buying a home. It affects the mortgage products lenders offer and the amount of Stamp Duty Land Tax (SDLT) you’ll have to pay on your purchase, as first time buyers can claim relief.

Your buyer status can also affect your eligibility for government schemes like Shared Ownership and First Homes, which can make a real difference to your affordability.

Who qualifies as a first time buyer? 

The key factor in determining your buyer status is ownership, not whether you’ve previously bought a home.

You’ll qualify as a first time buyer if:

• You’ve never owned or had a major interest in a residential property before.
• You’re buying a home to live in, not to rent out.
• You’ve previously owned or currently own a commercial property that doesn’t include dwellings.

You won’t qualify as a first time buyer if:

• You’ve ever been added to someone else’s title deeds.
• You’re buying with someone else who owns or has owned a home.
• You’re married to someone who already owns a home.
• You’ve been gifted or inherited a residential property, even if you’ve never lived in it.

Schemes and support for first time buyers 

Wondering what schemes are available for first time buyers? You’re in the right place. At Share to Buy, we make your choice easier by providing resources on all the government-backed and developer-led initiatives you could be eligible for.

Shared Ownership

If you’re finding it challenging to buy a home in your area due to high property prices and the subsequent deposit requirements, Shared Ownership could be the solution.

This government scheme allows you to buy a 10%-75% share of a leasehold home and pay rent on the remainder to the housing provider. You’ll only need a deposit based on the share you’re buying, making the upfront cost of purchasing a home lower than if you were buying it fully.

When your income rises, you’ll have the option to increase your share through a process called staircasing. In most cases, you’ll have the option to staircase all the way up to 100%, making you the outright owner.

Learn more about the scheme and eligibility criteria in our Shared Ownership hub.

London Living Rent

Calling all Londoners wanting to save a deposit: London Living Rent is the scheme for you.

This initiative from the Mayor of London allows you to rent at a discounted rate, so you can build up your savings to buy a Shared Ownership home. Designed for middle-earners, it’s available to households with a maximum income of £75,000.

Visit our London Living Rent hub for more information on how it works, eligibility and prioritisation.

First Homes scheme

Buy a place to live for less with the First Homes scheme. This government-backed initiative helps first time buyers purchase a home with a discount of 30%-50% off the market price.

It’s available on specific new-build properties priced under £250,000, or £420,000 in London, after the discount has been applied.

Discover more in our First Homes discount scheme hub.

Deposit Unlock

Deposit Unlock is a developer-led initiative launched by the Home Builders Federation.

It allows buyers to purchase a new-build home from a participating developer with just a 5% deposit. The developer provides the lender with an insurance-backed guarantee, unlocking more competitive mortgage rates and making the home-buying process more affordable.

Find out more about the scheme in our Deposit Unlock hub.

Buying in London?

Share to Buy is the UK’s leading property portal dedicated to affordable homeownership and buying schemes, acting as an authority, resource and friend to aspiring homeowners.

While we offer thousands of first time buyer homes across the country, budding buyers in the capital can also access help and guidance on the Homes for Londoners website.

Built in partnership between Share to Buy and the Greater London Authority, the Mayor of London’s official property platform offers Londoners a chance to search for local homes and learn about their housing options.

Financial advice for first time buyers 

Finances can be one of the trickiest things to get your head around as a first time buyer. From credit scores to mortgages and interest rates, there’s a lot of jargon to learn.

Even talking about money can be daunting. But when it comes to getting financially ready to buy your first home, speaking to an expert mortgage broker is the best place to start. Check out our mortgage broker panel to find a specialist who can guide you through the process.  

Speaking to family or friends can be really helpful too, especially if they own their home. They were once in your shoes, so they can help you understand how the process works and maybe even share some tips and tricks based on their experiences.

How to get a mortgage as a first time buyer

A mortgage is a loan you borrow to buy a home. Between filling out forms and providing supporting documents, the application process can be complex. You can apply directly to a bank or building society, or use a mortgage broker.

How much deposit do you need? 

It’s all well and good saving what you can to build your deposit, but how do you know when you have enough to buy a home?

Most lenders require a minimum deposit of 5% of the purchase price. However, it’s beneficial to put down a 10%-20% deposit, as this may reduce the amount you need to borrow and unlock better mortgage interest rates. The deposit amount, including what percentage you’re required to put down, can also vary greatly depending on the property and your personal finances.

Understanding SDLT for first time buyers 

Stamp Duty Land Tax (SDLT) is the tax payable on all residential property purchases in the UK. As a first time buyer, you’re eligible for relief, but the amount of tax you’ll pay depends on the purchase price. You’ll pay:

• 0% tax on the first £300,000
• 5% tax on the portion from £300,001 to £500,000

You can’t claim the relief if the price is above £500,000. In this case, you’ll pay the same SDLT rates as people who’ve bought a home before.

Mortgage types and affordability checks 

There are various mortgage types available, and choosing the best one depends on your circumstances and preferences.

Most first time buyers take out repayment mortgages, where the monthly payments cover the loan and interest rate. Popular types include:

• Fixed-rate mortgage: Your repayments are the same every month for a set period – usually two, three or five years – protecting you from interest rate fluctuations.
• Variable-rate mortgage: Your monthly repayments can go up or down depending on whether interest rates rise or fall.

When you apply for a mortgage, lenders will assess your affordability by considering things like your income, monthly outgoings and any current or outstanding debts. They do this to make sure you can afford the monthly repayments on your mortgage.

You can get an idea of your affordability before applying by using our free affordability calculators. For a more detailed picture of your finances and exactly how much you could borrow, we’d recommend speaking with a mortgage broker.

Common unexpected costs to plan for 

On top of your deposit and mortgage repayments, there are several other costs associated with buying a home. These include:

• Mortgage broker fees
• Mortgage product fees
• Property reservation fee (if applicable)
• Solicitor fees
• Surveyor fees
• SDLT (if applicable)