Buying your first home can feel out of reach — especially with rising living costs and deposit requirements.
But the good news is, there are still plenty of low-deposit mortgages, government schemes, and smart buying strategies that can help you step onto the ladder sooner than you might think.
Here’s what you need to know before applying for your first mortgage — and how Mortgage Knight can help make it happen.
Make the Most of Low-Deposit Mortgage Options
Many lenders are now offering 5% deposit mortgages through the Mortgage Guarantee Scheme, helping first-time buyers access the same competitive rates as those with larger deposits.
Lenders like Halifax, NatWest, and Virgin Money continue to support low-deposit borrowers — especially those with strong affordability and clean credit histories.
A 5% deposit on a £250,000 property is £12,500 — and increasing that slightly could reduce your interest rate. For example, going from a 95% to 90% loan-to-value (LTV) could save thousands in interest over the term.
Tip: Even a small deposit top-up, such as a gifted contribution from family, can improve your rate options significantly.
Explore Help for First-Time Buyers
You don’t have to go it alone. There are several support routes available to make homeownership easier:
First Homes Scheme – Buy a new-build home at 30–50% below market value.
Shared Ownership – Buy a share of a home and pay rent on the rest.
You don’t have to go it alone. There are several support routes available to make homeownership easier:
First Homes Scheme – Buy a new-build home at 30–50% below market value.
Shared Ownership – Buy a share of a home and pay rent on the rest.
Lifetime ISA (LISA) – Save up to £4,000 a year and get a 25% government bonus toward your first home.
These can be combined with a mortgage to reduce your upfront deposit — but each scheme has its own eligibility rules.
A whole-of-market broker can guide you through which lenders support them.
Why Use a Broker as a First-Time Buyer
Buying your first home involves hundreds of moving parts — from lender rules to income checks and deposit sources.
A whole-of-market broker like Mortgage Knight helps you:
- Compare over 90 lenders — including those not available directly to consumers.
- Avoid declined applications by matching your situation to the right lender first time.
- Understand realistic affordability and next steps to secure approval faster.
- We don’t just find a mortgage — we help you plan for long-term affordability and success.
Strengthen Your Mortgage Application
Your credit profile can make or break your first mortgage application.
To give yourself the best chance:
- Keep credit card balances below 30% of your limit.
- Avoid new loans or finance applications before you apply.
- Get on the electoral roll and update your address history.
- Review your credit file and fix any outdated data.
Choose the Right Location
It’s no secret that where you buy can drastically change what you can afford.
Areas outside city centres or in commuter zones often offer much better value for money, especially for new buyers.
Mortgage Knight advisers can help you explore how your target area affects affordability, and which lenders are most flexible with location-based valuations.
Case Studies
Case Study 1: Alex – Teacher Buying Their First Flat
Alex had a £15,000 deposit and used the Mortgage Guarantee Scheme to buy a £260,000 property. Mortgage Knight secured a 95% LTV deal through Halifax, completing within six weeks.
Case Study 2: Hannah & Josh – Shared Ownership Buyers
With a combined income of £54,000, they purchased a 40% share of a £320,000 home. Mortgage Knight found a low-rate 5-year fix, with flexibility to staircase later.
Case Study 3: Omar – Contractor Paid in USD
As a foreign currency earner, Omar struggled with direct lender approvals. Through Mortgage Knight, he accessed a NatWest deal that accepted non-sterling income and completed his first purchase with a 10% deposit.
Frequently Asked Questions
Q1. How much deposit do I need as a first-time buyer?
Ans: You can buy with as little as 5% through government-backed schemes, but a 10% deposit often unlocks better rates.
Q2. Are there any incentives for first-time buyers?
Ans: Yes — the First Homes Scheme, Shared Ownership, and Lifetime ISA all remain key ways to boost affordability.
Q3. Can I use a gifted deposit from family?
Ans: Yes, most lenders accept gifted deposits, provided the gift is non-repayable and properly documented.
Q4. What if I’m self-employed or a contractor?
Ans: Mortgage Knight works with specialist lenders who assess income using your latest accounts or contracts — not just payslips.
Q5. How long does buying your first home take?
Ans: It usually takes 8–12 weeks from mortgage application to completion, depending on the property and solicitors involved.
Professional Guidance For First Time Buyers
If you’re a contractor looking for professional mortgage guidance, we’re here to help. Our specialist knowledge and lender relationships enable us to provide expert advice tailored to your situation.
Mortgage Knight’s advisers can help you compare deals, maximise your deposit, and find the right lender for your situation.
Get Expert First-Time Buyer Advice
