Taking your first step onto the property ladder is exciting — and we’re here to help make the journey simple, clear, and stress-free. At Park Property Finance we specialise in supporting First Time Home Buyers across the UK, offering expert guidance and a range of First Time Buyer Mortgage options tailored to your needs.
Whether you're comparing mortgage loans for first time buyers, saving for a deposit, or ready to apply today, we’ll guide you every step of the way.
Understanding a First Time Buyer Mortgage
A mortgage is a loan secured against a property you purchase. As a first-time buyer in the UK, you’ll typically need:
· A deposit (usually between 5% and 20% of the property price)
· A stable income
· A good credit profile
· Documentation to prove your financial situation
The good news? There are many UK-specific mortgage loans for first time buyers designed to make homeownership more accessible. We have access to every lender in the UK, so you can be confident that we will find the right deal for your circumstances.
Get in touch with us today and start your journey to becoming a property owner!
the buying process - step by step
step 1 - work out how much you can afford
Before viewing properties, you’ll need a clear picture of your budget. UK lenders assess affordability based on:
· Your income (salary, bonuses, self-employed earnings)
· Expenditure and existing debts
· Credit history
· Loan-to-income ratio (LTI), typically up to 4.5× your annual income
We’ll help you understand your borrowing capacity so you can shop for homes with confidence.
Step 2: Explore UK Mortgage Options for First Time Buyers
There are several mortgage types and schemes specifically suited to First Time Home Buyers in the UK:
Fixed-Rate Mortgage
· Your interest rate is locked for 2, 3, 5, or 10 years.
· Ideal for budgeting and stable monthly payments.
Tracker Mortgage
· Your rate follows the Bank of England base rate.
· Payments can go up or down depending on the economy.
Variable Rate Mortgage (SVR or Discounted)
· Rates fluctuate at the lender’s discretion.
· Useful for flexibility but less predictable.
Shared Ownership
· Buy a share of a home (usually 10–75%) and pay rent on the rest.
· A common option for first time buyers with smaller deposits.
Guarantor / Family Assist Mortgages
· A family member supports your application or uses savings as security.
· Helpful if you have a small deposit or lower income.
95% LTV Mortgages
· Available to first time buyers with only a 5% deposit.
Joint Borrower, Sole Proprietor
If the property that you're looking for is slightly out of your reach, assistance can be given from a family member or a close friend. Some lenders can use their income to supplement your own meaning you can borrow a greater amount. As with all types of mortgage, their are specific terms and warnings with this type of mortgage and here at Park Property Finance, we are qualified to guide you through these.
No matter your situation, we’ll help match you with the best First Time Buyer Mortgage for your circumstances.
step 3 - obtain an agreement in principle (AIP)
An Agreement in Principle (also called a Decision in Principle) confirms how much you can borrow. It helps you:
· Show estate agents you’re a serious buyer
· Make stronger offers
· Avoid disappointment during the application stage
This usually requires a soft credit check and takes only minutes to arrange. We recommend checking your credit file in advance with checkmyfile.co.uk, and ensuring there are no errors.
step 4 - find your ideal property
With your AIP in hand, you can begin viewing homes. In the UK, most buyers work with:
· Estate agents
· Online property portals (Rightmove, Zoopla, OnTheMarket)
· Local developers (if considering new-build properties)
Once you find the right home, you can make an offer — and we can advise you on how to strengthen it.
Step 5: Apply for Your Mortgage and Start Conveyancing
When your offer is accepted, the full mortgage application begins. This includes:
· A property valuation
· Credit and affordability checks
· Submission of financial documents
· Instructing a conveyancer or solicitor
Your solicitor will handle legal checks, searches, contracts, and communication with the seller. If you don’t have a solicitor already, we can provide recommendations.
We support you from application to completion to ensure everything goes smoothly.
Step 6: Exchange, Complete and Move In
The final steps are:
Exchange of contracts
· You pay your deposit
· The sale becomes legally binding
Completion
· Your mortgage funds are released
· You receive your keys
· You officially become a homeowner!
Congratulations — you’ve secured your First Time Buyer Mortgage and stepped onto the UK property ladder!