First-Time Buyers mortgage brokers in London

First-Time Buyers mortgages in London: what to know

First-time buyers face the tightest affordability constraints of any group, but also get the most support: no stamp duty below the first-time-buyer threshold in England and Northern Ireland, access to Lifetime ISA bonuses, and lender schemes aimed specifically at smaller deposits. If you are buying in London, the practical question is usually how to bridge the gap between the deposit you have and the loan the lender will offer.

• A Lifetime ISA adds a 25% government bonus on up to £4,000 a year toward a first home, but the property price cap and the withdrawal penalty outside the rules both catch people out.
• First-time buyers pay no stamp duty in England and Northern Ireland below the first-time-buyer threshold. Scotland and Wales operate their own systems with different reliefs.
• Gifted deposits from family are widely accepted, but the lender will want a signed letter confirming the money is a gift rather than a loan, plus evidence of its source.
• Get an agreement in principle before you view seriously in London. Many estate agents will not book viewings without one, and it is usually only a soft credit check.

What matters locally in London

The capital is really dozens of separate markets. Zone 1 and the prime central boroughs are dominated by flats and cash-heavy buyers; the inner ring — Hackney, Peckham, Walthamstow, Brixton — mixes Victorian terraces with converted flats and heavy first-time-buyer demand; the outer boroughs from Croydon and Bromley to Barnet and Bexley are where family houses and school catchments drive moves. Ex-local-authority flats are everywhere and are perfectly mortgageable, but a minority of lenders restrict them by block height, balcony access or the percentage of privately owned flats in the block. New-build towers along the river and in regeneration zones bring their own issues: service charges that affect affordability, and cladding and building-safety documentation that a lender will want to see before offering.

• Shared ownership and other part-buy routes. London has more shared-ownership stock than anywhere else in the UK, and only a subset of lenders offer mortgages on it, with their own rules on maximum share and rent-plus-mortgage affordability.
• Buy-to-let stress tests. London rental yields are compressed relative to prices, so buy-to-let purchases here frequently fail a lender's interest coverage test even when the property lets easily.

Questions worth asking a first-time buyers broker

What deposit do I need as a first-time buyer in London?

5% is the practical minimum with most lenders, though 10% opens up noticeably better rates and 15% better again. Some lenders offer deposit-free options backed by a family guarantee or savings charge.

Do first-time buyers pay stamp duty?

In England and Northern Ireland, first-time buyers pay nothing below the first-time-buyer threshold and a reduced rate above it up to a cap. Scotland (LBTT) and Wales (LTT) run separate systems with their own first-time-buyer treatment. Our stamp duty calculator covers the England and Northern Ireland rules.

How long does an agreement in principle last?

Usually 30 to 90 days depending on the lender. It is not a formal offer, but it demonstrates to agents that you are a serious buyer and gives you a realistic budget before you view.

Can I buy with a friend or sibling?

Yes. Most lenders will consider up to four applicants, though many only count the income of two. Take legal advice on how you hold the property — joint tenants versus tenants in common has real consequences if circumstances change.