First-Time Buyer’s Guide to Navigating UK Mortgages in 2025

From understanding mortgage types to securing deposits and exploring government schemes like Help to Buy, first-time buyers in the North West and beyond need clear guidance. At Aspire Financial Advisers, we simplify the process, helping you secure the right first-time buyer mortgage. Here’s your step-by-step guide to navigating UK mortgages in 2025.

Step 1: Understand Mortgage Types

Choosing the right mortgage type is crucial for first-time buyers. UK lenders offer various options, each suited to different financial needs:

• Fixed-Rate Mortgages: Lock in your interest rate for 2–5 years, ensuring stable monthly payments. Ideal for budgeting in the North West’s competitive housing market.
• Variable-Rate Mortgages: Rates fluctuate with the Bank of England’s base rate, potentially offering savings but with less predictability.
• Tracker Mortgages: Follow the base rate plus a fixed percentage, offering flexibility but with rate change risks.
• Interest-Only Mortgages: Pay only interest monthly, with the principal due at term’s end, though less common for first-time buyers.

Aspire Financial Advisers helps you compare these options, ensuring your mortgage aligns with your financial goals.

Step 2: Know Deposit Requirements

A deposit is your upfront contribution to the property’s cost, typically 5–10% of the purchase price. In 2025, the average UK first-time buyer deposit is around £61,090, though this varies by region, with the North West often requiring slightly lower deposits due to more affordable property prices.

• 5% Deposits: Available through 95% loan-to-value (LTV) mortgages, but higher interest rates apply.
• 10% Deposits: Unlock better rates, reducing monthly payments and negative equity risks.
• No-Deposit Options: Rare, but schemes like Skipton Building Society’s 100% mortgage exist for select applicants.

Aspire’s expert advisers assess your finances to recommend the best deposit strategy, maximising affordability.

Step 3: Explore Government Schemes

Government schemes can ease the path to homeownership, especially for first-time buyers in the North West:

• Help to Buy Equity Loan (Wales): Available until September 2026, this scheme offers a 20% government loan (40% in London) for new-build homes up to £600,000, requiring only a 5% deposit. Interest-free for five years, it lowers your mortgage needs.
• Shared Ownership: Buy 25–75% of a property and pay rent on the rest, reducing deposit and mortgage requirements.
• Lifetime ISA: Save up to £4,000 annually and receive a 25% government bonus (up to £1,000) to boost your deposit.

Aspire guides you through eligibility and application processes for these schemes, ensuring you benefit from available support.

Step 4: Simplify with Aspire Financial Advisers

Navigating mortgages can feel overwhelming, but Aspire Financial Advisers in the North West makes it seamless. Our expert team:

• Conducts affordability assessments to determine borrowing capacity.
• Compares hundreds of mortgage deals from UK lenders.
• Handles paperwork and liaises with lenders and solicitors.
• Offers tailored advice on conveyancing and home insurance.

With Aspire, you’ll avoid common pitfalls and secure a mortgage that fits your budget and lifestyle.

Step 5: Prepare for Additional Costs

Beyond the deposit, budget for:

• Stamp Duty: First-time buyers in England and Northern Ireland pay no stamp duty on properties up to £300,000 (from April 2025).
• Legal Fees: Solicitor and conveyancing costs.
• Buildings Insurance: Mandatory for mortgage approval.

Aspire ensures you’re aware of all costs, preventing surprises during the buying process.

Take the Next Step

Buying your first home in 2025 is achievable with the right guidance. Aspire Financial Advisers in the North West simplifies every step, from choosing the right first-time buyer mortgage to leveraging government schemes like Help to Buy. If you’d like to discuss your financial goals, get in touch with our team today.

You will incur a lifetime ISA government withdrawal charge (currently 25%) if you transfer the funds to a different ISA or withdraw the funds before age 60 and you may therefore get back less than you paid into a lifetime ISA.

By saving in a lifetime ISA instead of enrolling in, or contributing to an auto-enrolment pension scheme, occupational pension scheme, or personal pension scheme:

• you may lose the benefit of contributions from your employer (if any) to that scheme; and
• your current and future entitlement to means tested benefits (if any) may be affected.