First-Time Buyer Mortgage Advice in 2025: What Nottingham Buyers Really Need to Know

It’s no wonder most first-time buyers end up Googling things at 11pm and feeling more confused than when they started.

This guide is here to help you get the answers without the unnecessary waffle.

If you’re a first-time buyer in Nottingham (or anywhere in England), we’ll walk you through:

• How much deposit you actually need in 2025
• What’s going on with government schemes now
• The key steps to getting mortgage-ready
• How to choose the right mortgage advisor
• And when getting advice can save you money, time and stress

How Much Deposit Do First-Time Buyers Need in 2025? #

Let’s start with the big one: the deposit.

You’ll usually need at least a 5% deposit to buy a home with a mortgage in the UK.

So if you’re buying a £180,000 property in Nottingham, that might look like:

• 5% deposit: £9,000
• 10% deposit: £18,000

In practice:

• The minimum for most first-time buyer products is still 5% (95% loan-to-value). Many major lenders offer 95% mortgages, including first-time buyers
• A 10-15% deposit normally opens up access to more lenders and better rates
• A 20%+ deposit tends to put you in the strongest position in terms of choice and pricing

Recent data suggests the average first-time buyer deposit in England is around £60,000-£70,000, with Halifax putting the average at just over £61,000 in 2024

That’s the national picture, though - and we know it can sound scary.

But the good news is, Nottingham is usually cheaper than the UK average.

Official stats show the average price paid by first-time buyers in Nottingham was around £175,000-£178,000 over 2024-2025

That means:

• A 5% deposit ≈ £8,750-£8,900
• A 10% deposit ≈ £17,500-£17,800

Still a big ask, but more realistic than London-level numbers you may see in the news.

Government Help for First-Time Buyers in 2025 #

There’s no single magic scheme that works for everyone, but there are ways to get help with either your deposit or affordability.

Here are the main options to be aware of in 2025:

1. Mortgage Guarantee Scheme (5% deposit support) #

The Government’s Mortgage Guarantee Scheme helps lenders offer 95% mortgages - meaning you can buy with a 5% deposit. The scheme has been made permanent, with the government guaranteeing to cover a portion of potential losses if a borrower defaults on the mortgage, to encourage lenders to keep low-deposit products available.

You still need to pass standard affordability checks, but it can:

• Open up more 95% LTV options
• Help you buy sooner if saving a bigger deposit would take years

2. First Homes Scheme #

The First Homes scheme offers eligible first-time buyers in England a 30-50% discount on the market value of a new-build home.

Key points:

• The discount stays with the property (so it’s also discounted for the next first-time buyer)
• There are income caps, and local councils can prioritise local buyers or key workers
• It can significantly reduce the deposit you need

3. Shared Ownership #

With Shared Ownership, you buy a share of a property (often 25-75%) and pay rent on the rest.

• You only need a deposit based on the share you’re buying
• You can usually “staircase” later - buying more of the property over time

It’s not right for everyone, but for some buyers it’s a realistic stepping stone onto the ladder.

4. Lifetime ISA (LISA) #

If you’re still saving, a Lifetime ISA can give your deposit a boost:

• You can save up to £4,000 a year
• The government adds 25% (up to £1,000 per year)
• You can use it towards your first home (subject to price limits and rules)

Stamp Duty for First-Time Buyers in 2025 #

From 1 April 2025, Stamp Duty thresholds reverted to pre-2022 levels. For first-time buyers in England:

• 0% Stamp Duty on properties up to £300,000
• You pay Stamp Duty on the portion above that (up to £500,000 purchase price for first-time buyer relief)

In practice, this means many first-time buyers in Nottingham (where average FTB prices are well below £300,000) won’t pay any Stamp Duty at all - but it’s important to double-check your numbers if you’re buying at a higher price point.

Step-by-Step: Getting Mortgage-Ready as a First-Time Buyer #

If you’re beginning to look into your first mortgage and want a clear idea of what to expect, this step-by-step guide will make the process feel much more manageable.

1. Work out how much you can realistically borrow #

Most lenders will let you borrow around 4-4.5x your income (sometimes more, sometimes less, depending on your situation).

A mortgage advisor can run more precise numbers based on:

• Your income (basic, overtime, bonuses, self-employed, etc.)
• Your regular commitments (loans, credit cards, childcare, car finance)
• Your credit history

2. Get your deposit and credit profile in shape #

Before you apply:

• Aim to reduce high-interest debts where possible
• Try to make all payments on time for at least 6-12 months
• Avoid taking out new credit right before a mortgage application

Lenders want to see that you can manage money reliably. Even a few small changes can make a difference to how much you can borrow or which products you’re offered.

3. Get an Agreement in Principle (AIP) #

An Agreement in Principle (also called a Decision in Principle) is a quick check with a lender or broker that says:

“Based on the information you’ve given us, we’re happy (in principle) to lend you up to £X.”

It’s not a guarantee, but it:

• Helps you understand your price range
• Shows estate agents you’re serious
• Can make your offer more attractive if there’s competition

4. Start viewing properties in your price range #

For Nottingham, many first-time buyers look in areas like:

• Suburbs with good transport links and schools
• Up-and-coming areas where prices are still lower than the city average

At this stage, it’s less about memorising every interest rate and more about:

• What compromises you’re genuinely happy with (size, location, property type)
• Whether your “wish list” matches your budget in the real world

5. Full application & underwriting #

Once your offer is accepted, your advisor will:

• Place a full mortgage application with a lender that suits your situation
• Provide your documents (payslips, bank statements, ID, proof of deposit, etc.)
• Support you through valuation and underwriting

This is where having a broker or advisor can really lower stress - they speak the lender’s language so you don’t have to.

If you want to go even deeper, you can also download our FREE First-Time Buyer Guide below for extra tips and simple checklists to help you get started.

How to Choose the Best Mortgage Advisor for First-Time Buyers #

If you’re a first-time buyer searching for clear, trustworthy advice, here’s what to look for when choosing the right mortgage advisor.

1. Are they whole-of-market (or restricted)? #

• Whole-of-market advisors can search a wide range of lenders (not just one bank).
• Some advisors are tied to one lender or a small panel - that’s not automatically bad, but it’s important to know.

2. Do they understand first-time buyer challenges? #

A good first-time buyer broker will:

• Explain things without jargon
• Help you weigh up fixed vs variable products in plain English
• Talk honestly about deposit options, gifted deposits, and schemes

3. Are they local - and does that matter? #

You don’t have to use a local broker, but for markets like Nottingham, a local advisor often knows:

• Typical price ranges street-by-street
• Which lenders are more flexible about property types in the area
• How quickly solicitors and surveyors move locally 

That context can really help when you’re trying to line everything up before a rate expires.

4. Reviews and recommendations #

Check:

• Online reviews
• Social proof (case studies, Google reviews, testimonials)
• Whether friends/family have used them and would recommend them 

You’re trusting them with one of the biggest financial decisions of your life - it’s okay to be picky.

Why First-Time Buyers Trust Key Mortgages #

Here at Key Mortgages, we’re proud to offer:

• Whole-of-market access - we search thousands of mortgages from over 70 lenders to find the right fit for you.
• Fast, efficient applications - we’ve helped first-time buyers secure mortgage offers in as little as one week after submitting their documents.
• Local knowledge with national reach - our advisors are based in Nottingham, but we also support first-time buyers across the UK through online appointments.
• Trusted by more than 1,000 people - with 350+ 5-star reviews from clients who felt supported every step of the way.
• Award-winning expertise - recognised as 6-time industry award winners.

Choosing your first mortgage is a big milestone, and having the right advisor can make the entire journey smoother, clearer, and more confident from day one.

When Should a First-Time Buyer Use a Mortgage Advisor Instead of Going Direct? #

You can go directly to a bank. But there are some situations where getting advice is more than just “nice to have”:

• You’re unsure how much you can borrow and want a clear, realistic figure
• You’re self-employed, work on contracts, or have variable income
• You’ve had credit blips (late payments, defaults, past issues)
• You want someone to compare multiple lenders, not just one bank’s range
• You feel overwhelmed and want a guide through the process

An advisor can’t magically make a mortgage appear if you’re not eligible - but they can make sure:

• You’re applying to the right lenders for your profile
• You’re not overpaying when there could be a better fit elsewhere
• You understand the trade-offs clearly (not just “cheapest rate wins”)

Bringing It All Together in 2025 #

If we zoom out and look at the bigger picture:

• Deposits are still the biggest hurdle - but you don’t always need the huge averages you see on the news, especially in cities like Nottingham
• You can often start with 5-10%, especially with support from schemes or the Mortgage Guarantee framework.
• First-time buyers are still getting on the ladder - in fact, first-time buyer numbers rose significantly in 2024
• The right combination of advice, preparation and realistic expectations can turn “this feels impossible” into “this could actually work.” 

Ready to Talk About Your First Mortgage? #

If you’re at the stage where you’re exploring your options, comparing advice, or just trying to understand how the process works, you’re already taking the right steps.

The next step is getting advice that’s tailored to you, your income, your deposit, your plans.

Book a free, no-obligation chat with a mortgage advisor to talk through your options for buying your first home in 2025.

Doesn't matter if you’re 3 months or 3 years away - getting clear on the numbers now can save you time, stress and, often, money later on.

The information in this guide is accurate as of November 13th, 2025. Mortgage rates and products change frequently. For the most current information and personalised advice based on your circumstances, speak with a qualified mortgage advisor.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.