What Benefits Do First-Time Buyers Get?

As a first-time buyer, competing for a home can be challenging since you are entering unfamiliar territory. Yes, as a first-time buyer, you might be able to negotiate a lower price than current homeowners, but it’s important to note that you are in a much stronger position than most because you have your deposit, and you have nothing to sell.

What are the advantages of being a first-time buyer?

Getting on the property ladder can be a daunting task, particularly if you are unfamiliar with the process.

There are many reasons why you will be a preferred choice as a first-time buyer.

We have compiled a list of some of the best advantages of being a first-time homebuyer.

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No ties

As a first-time buyer, you have a significant advantage over other people who want to make an offer on a property you like. What is the reason for this? It is the simple fact you do not currently have a property to sell in order to buy a new one. Since you are not in a chain, if you make an offer on that house, you will be more dependable than a current homeowner; after all, anyone who wants to sell their current property depends on the buyer to complete the transaction. As a result, your status as a first-time buyer benefits both you and the seller.

A speedier process

If an offer on a desired new property has been accepted, the seller’s biggest motivation is to sell their current home as quickly as possible; the faster they sell their current home, the quicker they can move into their new home.

As a first-time buyer, knowing that you won’t be dependent on the sale of a property is a huge relief for the person selling the property it takes a lot of the burden out of moving. It makes this time-consuming process a little easier to manage.

Financial benefits

You’re in a great financial spot, with various financing options available, including paying no stamp duty up to certain property prices , which is available to all first-time buyers. This can vary from time to time, so our mortgage adviser is happy to clarify the current government stance on stamp duty for First Time Buyers

There is help-to-buy available. You can purchase a home with as little as a 5% deposit.

Being a first-time home buyer also puts you in a good financial spot, with options like the Help to Buy ISA scheme open to all first-time buyers. Unlike some other government programmes, the Help to Buy scheme can purchase any New Build property. The maximum property price you are allowed to purchase under the Help to Buy scheme does vary wherever you are in the country so please check the Help to Buy website for further information or contact us to find out more. This makes your dream house more affordable than you think.

Shared Ownership Shared equity schemes are other choices you have to get on the property ladder, these schemes sometimes allow you to pay a lower deposit.


  • No chain
  • Quicker process
  • Financial benefits
  • More flexibility

So, when you are looking for your perfect new home, have confidence when making an offer. You can benefit greatly as a first-time buyer, and you’re not alone in feeling anxious about this process; every homeowner has been in your position at some point.

Want to know more?

For more details, call our Mortgage Saving Experts today.

Help to Buy

This government-backed programme requires just a 5% deposit on the overall value of the property you wish to purchase. The government will lend you 20% of the purchase price, and you will get a mortgage for the remaining 75%.

You’re in luck if you’re a first-time buyer who isn’t planning on purchasing a house in the next year or so. The current scheme will continue until 2021, after which a new scheme will begin in 2023 that will only be available to first-time buyers.

This ensures that first-time buyers will be able to take advantage of Help to Buy until 2023.

Shared Ownership

You may be qualifying for a Shared Ownership mortgage if you’re a first-time buyer with a household income of less than £80,000.

This means you’ll get a mortgage on a portion of a house, and a housing association will own the remainder. The remaining share is then rented to you at a reasonable rate. However, this does not have to be the case indefinitely. When the time is right, you can buy more shares of the property before owning it fully.

Stamp duty

You will be charged stamp duty when purchasing a residential property. This is intended to offset the expense of buying a property. Within each tax band, stamp duty is charged on a sliding scale depending on the purchase price of the property.

You won’t have to pay stamp tax on assets worth up to £300,000 if you’re a first-time buyer (as per 8th June 2021 – but this can change at any time).

So, if you were buying a £200,000 home, stamp duty would normally cost you about £1500. You don’t have to pay this currently if you’re a first-time buyer!

Preferred buyer

You have a significant advantage over homeowners as a first-time buyer. What is the reason for this? You don’t have a property to sell. This ensures there will be less complications and less things to go wrong during the buying process.

This is because they will have to wait for someone else to purchase their house before moving. Being a first-time buyer benefits both you and the seller, particularly if they are looking for a quick sale!

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Move from a family home

For many people, owning a house is a long-term goal. Why not take full advantage of the fact that you are able to purchase a home, which is a lot easier now with all the funding available?

Having your own pad will give you full independence! You won’t be ordered to clean your room or wash the dishes anymore. You should complete everything on your own time.

Similarly, if you are already renting an apartment, you will no longer be bound by your landlord’s laws; for example, many rentals have a no-pet policy.

No more wasted rent

Buying your own property means putting money into your own pocket rather than your landlord’s. Rather than being lost, your monthly contributions would go entirely toward paying off your mortgage.

It’s a long-term investment with many advantages, such as making money if the property value increases.

Freedom to finally make that perfect family home a reality

You will have full control over the property and will be able to make any improvements you want (within reason). It will allow you to show off your interior design skills and realise all of your home dreams. If you live in a flat though make sure you are allowed pets and are allowed to put in wooden floors because some leases on flats do not allow you to do this.

If you’re trying to get up the property ladder, talk to one of our knowledgeable mortgage counsellors about how they can assist you. To learn more, please visit our website or call us at 01273 738 072.


What is the new scheme for first-time buyers?

The most recent iteration of the Help to Buy equity loan scheme is open to first-time buyers and people who currently own their own home with a 5% deposit to put down. Rather than taking out a mortgage for the remaining 95% of the property’s value, the government lends you 20% of the property’s value, requiring you to take out a mortgage for the remaining 75%. The drawback here is if the property value increases while you own it then you only get 80% of that increase because Help to Buy will own 20% of the property value.

How much deposit does a first-time buyer need?

You need to have a minimum deposit of 5% of the property value you wish to purchase under Help to Buy.

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Want to know more?

For more details, call our Mortgage Saving Experts today.

Want to know more?

Get in touch with of our mortgage saving experts today to find out how we can help.

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