- 02083111234
- Mon-Fri : 9:00 - 17:30
Buying your first home in London is genuinely exciting and genuinely daunting in equal measure. The average first-time buyer in the UK is now 33.9 years old, and the average first-time buyer house price nationally sits around £226,000.
In London and the South East, that figure is considerably higher. The average deposit a first-time buyer brings to the table is just over £61,000, a sum that takes most people many years to save and which may only represent 15% of a London flat. At Square Gain Capital, we work with first-time buyers across London and the South East every day. We take the time to explain every step, every piece of jargon, and every decision in plain English, so that by the time you sign anything, you understand exactly what you are committing to and why.
Most lenders use an income multiple of between 4 and 4.5 times gross annual income. If you earn £40,000 per year, you could typically borrow between £160,000 and £180,000. With a partner earning the same, that rises to £320,000 to £360,000. These figures are subject to affordability stress testing, which factors in your monthly outgoings, student loan repayments, credit card balances, and living costs. Some lenders offer higher multiples for certain professions. Doctors, solicitors, and accountants may access multiples of 5 or 5.5 times through specialist professional mortgage schemes.
Arrangement fees are typically 1 to 2% of the loan amount. Exit fees, charged at redemption, may apply and should be checked. Legal fees are payable on both sides, borrower and lender.
The minimum deposit for a residential mortgage in 2026 is 5%. Several lenders offer 95% LTV products. At 10% deposit, the rate improves significantly. At 85%, 80%, and 75% LTV there are further meaningful rate improvements. The source of your deposit matters as much as the amount. Lenders want to see that your deposit is yours, either saved from income, received as a gift from a close family member with a signed gift letter confirming no repayment is expected, or from the sale of a previous asset.
First-time buyers in England pay no stamp duty on the first £300,000 of a property purchase, as long as the total purchase price is no more than £500,000. On the portion between £300,000 and £500,000, a 5% rate applies. If the property costs more than £500,000, you lose the first-time buyer relief entirely and pay standard rates from the first pound. This relief can save up to £10,000 compared to a non-first-time buyer. Rates and thresholds are set by HMRC and can change.
Arrangement fees are typically 1 to 2% of the loan amount. Exit fees, charged at redemption, may apply and should be checked. Legal fees are payable on both sides, borrower and lender.
The Help to Buy equity loan scheme is now closed to new applicants. The Mortgage Guarantee Scheme, which supports 95% LTV lending, continues through participating lenders. The First Homes scheme provides a minimum 30% discount on new build properties to qualifying first-time buyers and key workers, with the discount preserved when the property is eventually sold. Shared Ownership allows you to purchase between 10% and 75% of a property and pay rent on the remainder, with the option to staircase to full ownership over time. Not every lender participates in every scheme. We advise on eligibility and identify the right mortgage product within whichever scheme applies.
Before viewing properties seriously, check your credit report using Experian, Equifax, or TransUnion. Make sure you are on the electoral roll, close any unused credit accounts you do not need, and avoid new credit applications in the months before applying. Begin collating your documents: payslips, bank statements, P60, and evidence of your deposit.
An Agreement in Principle tells you approximately how much a lender is willing to lend based on a credit check and income confirmation. Estate agents often ask to see one before accepting an offer. We obtain yours quickly and make sure it comes from a lender who is genuinely likely to approve the full application.
Once you have your AIP, you can search with confidence. When you find a property you want, you make an offer through the estate agent. If accepted, you instruct a solicitor and notify us to proceed with the full mortgage application
We submit your full application. The lender arranges a valuation of the property. We recommend all buyers commission their own independent survey in addition, since the lender's valuation protects them, not you
When the lender is satisfied, they issue a formal mortgage offer, typically valid for three to six months. Your solicitor reviews the offer, conducts property searches, and coordinates exchange of contracts. On exchange, you pay your deposit and become legally committed to the purchase.
On completion day, the mortgage funds transfer to the seller's solicitor, you hand over the balance, and you receive the keys.
Run the numbers, then talk to us. Our financial calculators cover mortgage repayments, how much you could borrow, stamp duty, bridging finance and rental yield. Results are estimates only and should not be relied on as financial advice.
Every first-time buyer’s situation is different. Here are some of the circumstances our advisers help first-time buyers navigate from initial question to key in hand.
The amount a lender will offer depends on your income, your outgoings, the size of your deposit, and your credit history. not just a headline income multiple. We run through the numbers with you accurately and honestly before you start making offers.
Adverse credit does not automatically mean rejection. The type of issue, how long ago it occurred, and whether it has since been resolved all shape which lenders are available to you. We know which lenders apply the most pragmatic approach.
Solo buyers face a steeper affordability challenge in London, but there are specific lenders, scheme options, and deposit structures that improve the position. We help you understand exactly what is achievable with your current profile.
You are not obligated to. Estate agents often receive referral fees for directing buyers to affiliated advisers. An independent broker searches 50 plus lender , not a curated panel, and has no financial interest in which product you choose.
Speak to an adviser to discuss your circumstances and explore how bridging finance could work for you.
Clear,honest answers to the questions we hear most from clients and introducers.
Your mortgage is the loan secured against the property, arranged by your broker and lender. Conveyancing is the
legal process of transferring ownership from seller to buyer, handled by a solicitor or licensed conveyancer. These
are separate processes running simultaneously. Your conveyancer checks the legal title, conducts searches, reviews the mortgage offer, and manages exchange and completion. You choose your conveyancer independently of your
lender.
Yes, in two ways. Student loan repayments are deducted from your income in the affordability assessment, reducing how much you can borrow. The outstanding balance also appears on your credit file, though it does not affect your credit score the way commercial debt does. Some lenders are more generous than others in how they treat student loan repayments, and we factor this into our lender selection.
Yes. Joint mortgages are available for up to four applicants in most cases, and the relationship between you does not affect eligibility. The key considerations are how the property is owned, whether as joint tenants or tenants in common, and what happens if one party wants to sell or cannot meet their share of the mortgage. A deed of trust drawn up by your solicitor sets out each party’s rights and is strongly recommended for any joint purchase between people who are not in a couple.
Some lenders will accept rental payment history as part of the affordability assessment, particularly where a borrower has a thin credit file but a strong track record of meeting a financial commitment comparable to the mortgage payment. Open Banking has made it easier for lenders to access rental payment data where applicants consent. We identify lenders who take this approach for clients whose credit file does not fully reflect their financial discipline.
There is no universal minimum. Each lender uses their own internal scoring model. What matters is the overall pattern of your credit history. A thin file, meaning very little credit history, can sometimes be as challenging as a file with minor adverse marks. We assess your credit position upfront and choose lenders accordingly.
We search the market and handle the process so you can focus on moving.
Whole of market search across a wide panel of lenders
Dedicated adviser throughout the process
We handle the paperwork and liaise with lenders on your behalf
