First Time Buyer Mortgages Explained

First Time Buyer Mortgages Explained with Manchester Money

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First Time Buyer Mortgages Explained Manchester

Last updated: 18th June 2025

Buying your first home is one of life’s most exciting milestones, but it can also feel like a maze of unfamiliar terms, complex steps, and financial pressure. At Manchester Money, we believe knowledge is power. That’s why we’ve created this clear, jargon-free guide to help you understand exactly what a first time buyer mortgage is, how it works, and how we can help make the process easier, faster, and less stressful.

What is a First Time Buyer Mortgage?

A first time buyer mortgage is a home loan specifically tailored for people who are buying a property for the very first time. If you’ve never owned a home in the UK or abroad, then you’re classed as a first time buyer.

First time buyer mortgages often come with benefits like:

Lower deposit requirements (as low as 5%)

Access to exclusive mortgage deals

Support through government schemes like the First Homes Scheme or Shared Ownership

At Manchester Money, we specialise in helping first time buyers like you secure the best mortgage deal possible, no matter your situation.

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How Does a First Time Buyer Mortgage Work?

When you buy a home, you’ll typically need to pay a deposit upfront (usually between 5% and 20% of the purchase price). The rest is covered by a mortgage loan from a lender, which you’ll repay monthly – including interest – over an agreed period (usually 25–35 years).

Your monthly repayments cover:

Capital – the amount you’ve borrowed

Interest – the lender’s charge for borrowing that money

You can choose between different types of interest rates, which will affect how much you pay each month – we explain those below.

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How Much Can First Time Buyers Borrow?

Lenders work out how much they’re willing to lend based on a number of factors, including:

Your income (and your partner’s if buying jointly)

Your monthly outgoings (like car finance, credit cards, childcare, etc.)

Your credit history

The size of your deposit

The more stable your income and the bigger your deposit, the more likely you are to secure a competitive deal.

At Manchester Money, we carry out an in-depth affordability check for you, not just what a lender might offer, but what you can realistically and comfortably afford.

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First Time Buyer Schemes & Support

First time buyers in the UK may be eligible for government support schemes designed to make buying your first home more affordable.

Popular schemes include:

Shared Ownership – Buy part of a property and pay rent on the rest.

First Homes Scheme – Get 30–50% off a new-build home (subject to criteria).

Lifetime ISA (LISA) – Save up to £4,000 per year, with a 25% bonus from the government.

Right to Buy – Discounts for eligible council or housing association tenants.

Our team can assess your eligibility for these schemes and help you access them, many of our clients are surprised by what they qualify for.

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Deposit Requirements for First Time Buyers

The minimum deposit for a first time buyer mortgage is typically 5% of the property price – but having a bigger deposit (e.g., 10% or 15%) can open the door to lower interest rates and better deals.

For example:

On a £200,000 home, a 5% deposit = £10,000

A 10% deposit = £20,000

If you’re still saving, we can offer tips and tools to help you reach your goal faster. Already saved your deposit? We’ll show you how to get the best value from it.

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Steps to Getting a First Time Buyer Mortgage

At Manchester Money, we make the process as smooth and stress-free as possible. Here’s what it typically looks like:

Book a Free Consultation – We learn about your goals and financial situation.
Get a Mortgage Agreement in Principle – So you know your budget and can make serious offers.
Start Viewing Homes – Find your dream home with confidence.
Make an Offer – When accepted, we handle the mortgage application.
Submit Full Mortgage Application – We manage the paperwork and liaise with the lender.
Legal Work & Survey – We work alongside your solicitor and the surveyor to keep things moving.
Get Your Mortgage Offer – When approved, you’re nearly there!
Exchange & Completion – Contracts are signed and funds released.
Move In – Get the keys and enjoy your new home!

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Why Choose Manchester Money?

At Manchester Money, we specialise in helping first time buyers across the UK, not just in Manchester. Whether you’re employed, self-employed, have complex income, or less-than-perfect credit, we’re here to help. With us, you get: