First-Time Buyer and New Build FAQs

Buying your first home, or deciding between a new build and an older house? These answers cover the schemes, the costs and the checks that matter most.

What help is there for first-time buyers?

The main help for first-time buyers in England is stamp duty relief, the Lifetime ISA, 95% mortgages backed by the government's mortgage guarantee scheme, and shared ownership. First-time buyers pay no stamp duty on the first £300,000 of a home costing up to £500,000. In September 2026 the government also announced a new scheme called Your First Home for new build purchases, with full details due later in the year. We've covered what we know so far on our blog.

How does a Lifetime ISA work for buying a house?

A Lifetime ISA lets you save up to £4,000 a year and the government adds a 25% bonus, worth up to £1,000 a year. You have to be 18 to 39 to open one. To use it for a first home, the property must cost £450,000 or less, you must buy with a mortgage, and the account must have been open for at least 12 months. Your conveyancer requests the money. Withdraw for anything else before 60 and you'll pay a 25% charge.

Can I get a 95% mortgage?

Yes, 95% mortgages are widely available, so you can buy with a 5% deposit if you pass the lender's checks. Many are supported by the government's mortgage guarantee scheme, which has been made permanent and covers homes up to £600,000 for first-time buyers and home movers. A smaller deposit usually means a higher interest rate and less room if prices fall, so compare the cost with saving for longer. A mortgage adviser can show you the difference in monthly payments.

Can my parents give me money for a deposit?

Yes, most lenders accept a gifted deposit from a family member. Your parents will usually need to sign a gifted deposit letter confirming the money is a gift, not a loan, and that they won't own any part of the home. Your solicitor will check where the money came from as part of anti-money laundering rules, so expect to show bank statements. If your parents want something back later, a loan or joint ownership needs proper legal advice first.

What is shared ownership?

Shared ownership lets you buy a share of a home, usually between 10% and 75%, and pay rent on the rest to a housing association or council. You need a mortgage or savings for your share only, so the deposit can be smaller. You can buy more shares later, known as staircasing. Shared ownership homes are almost always leasehold, so you'll also pay service charges and need permission for some changes. Read the lease and get advice before you commit.

How much money do I need on top of the deposit?

On top of your deposit, budget for solicitor fees, searches, a survey, any mortgage arrangement or valuation fees, and the cost of moving. If you're a first-time buyer spending more than £300,000, stamp duty also applies to the part above that. It's also worth keeping money aside for the first few months, as new owners often need furniture, repairs or white goods. Ask for written quotes from a solicitor and surveyor early so the figures are real rather than guesses.

Can I buy a house with a friend?

Yes, you can buy with a friend, and lenders will assess both incomes. Decide early whether you'll own as joint tenants, where the whole house passes to the survivor if one of you dies, or as tenants in common, where you each own a set share. Friends usually choose tenants in common, backed by a declaration of trust setting out who paid what and what happens if one of you wants to sell. Both of you are responsible for the whole mortgage.

Can I get a mortgage if I'm self-employed?

Yes. Self-employed buyers get mortgages all the time, but lenders usually want to see at least two years of accounts or tax calculations and tax year overviews from HMRC. Some will consider one year's figures. Lenders look at your net profit, or salary and dividends if you run a limited company, rather than turnover. Get your paperwork in order before you start viewing, and a broker who knows self-employed lending can point you to the lenders most likely to say yes.

Should I buy a new build or an older house?

It depends on what matters most to you. New builds usually have better insulation and lower running costs, a warranty, and nothing to fix for a few years, but rooms and gardens can be smaller and you may pay a premium for being first owner. Older homes, like the stone terraces and semis around Ramsbottom, often have more space and character but can need more upkeep. Whichever you choose, get the right survey and compare running costs as well as price.

What does a new build warranty cover?

Most new build homes come with a 10-year warranty, such as NHBC Buildmark. For the first two years, the builder is responsible for putting right most defects that break the warranty provider's standards. From years three to ten, the cover is mainly insurance against serious structural problems, such as foundations, walls and roofs. The warranty passes to the next owner if you sell within the 10 years. It doesn't cover wear and tear, so read what is included before you buy.

What is a snagging survey?

A snagging survey is an inspection of a new build home to find unfinished or faulty work, such as poorly fitted doors, missing sealant or paint defects. You can do it yourself, but many buyers pay a snagging inspector so the list is thorough. It's best done before you complete or soon after you move in, then sent to the builder in writing. Under most new build warranties the builder has to fix reported defects during the first two years.

How do I complain about a new build developer?

Complain to the developer in writing first, setting out the problems and keeping photos and dates. If they're registered with the New Homes Quality Board, they have to follow the New Homes Quality Code, and you can take the complaint to the New Homes Ombudsman Service. You can usually go to the ombudsman once 56 days have passed since your complaint, for issues reported within two years of completion. Your warranty provider may also have its own resolution service.

What are estate management charges on a new build?

Estate management charges are annual fees some new build owners pay a management company to maintain shared areas that the council hasn't adopted, such as roads, green spaces, play areas or drainage. They can apply to freehold houses as well as flats. Before you buy, ask how much the charge is, what it covers, how it has changed over recent years and how it can rise. Your solicitor should check the transfer deed carefully, as the charges usually continue for as long as you own the home.

What should I check when buying an older stone house?

With an older stone house, check for damp, the condition of the roof and chimneys, the pointing, and whether the electrics and boiler have been updated. Solid stone walls don't have cavity insulation, so heating costs and the EPC can be worse than in a newer home. A RICS Level 3 building survey is usually the right choice for a period property. If the house is listed or in a conservation area, alterations will need extra permission.

What credit score do I need for a mortgage?

There's no single credit score that guarantees a mortgage, because each lender uses its own scoring. What lenders look for is a history of paying bills on time, sensible use of credit, and being on the electoral roll at your address. Check your reports with Experian, Equifax and TransUnion, which you can do free, and correct any mistakes before you apply. Avoid new credit applications in the months before buying, as each one can show on your file.

Got a question we haven't answered?

Call us on 01706 310171, email sales@bowmanestatesltd.com or pop into the office at 88 Bolton Road West, Ramsbottom. If you're thinking of selling, you can book a free, no-obligation valuation.