The latest FCA mortgage lending statistics show that first-time buyer lending fell to 27.3% of gross advances for house purchase by owner occupiers in Q2 2026. That was the lowest share since Q1 2024.
For buyers, this does not mean getting onto the property ladder is impossible. It does mean you may need to prepare carefully before applying, especially if your deposit, income or credit position is not straightforward.
Why the figures matter
A lower share of first-time buyer lending can suggest that conditions remain challenging for some new buyers. Deposit requirements, affordability checks, property prices, household bills, credit commitments and wider borrowing costs can all affect how much you may be able to borrow.
A lender will not only look at your salary. It may also review your regular spending, credit file, deposit source, employment type, dependants, income stability and the property itself.
If you are starting the process, first-time buyer mortgage advice can help you understand the steps involved.
First-time buyer preparation checklist
| Area to review | What to check | Why it matters |
|---|---|---|
| Deposit | Amount saved and source of funds | Lenders may ask for evidence |
| Affordability | Income, bills, loans and credit cards | Affects how much you may borrow |
| Credit file | Address history, missed payments and active credit | Issues may affect lender choice |
| Purchase costs | Legal fees, survey, moving costs and insurance | Deposit is not the only cost |
| Documents | Payslips, bank statements, ID and proof of deposit | Missing evidence can delay an application |
Check your deposit and wider costs
Your deposit is only 1 part of buying a home. You should also allow for legal work, survey fees, moving costs, insurance and any mortgage-related fees.
Before viewing properties, it can help to check how much deposit you have, where the deposit has come from, your regular income, committed spending, loans, credit cards, credit file, likely moving costs and whether you have an emergency fund.
You can read more about buyers advice and wider mortgage options.
Understand affordability before applying
An agreement in principle can give an indication of what a lender may be prepared to lend. It is not a mortgage offer and does not guarantee approval.
Different lenders may treat income and commitments differently. This can be particularly relevant if you are self-employed, have recently changed job, have variable income, receive bonuses or rely on overtime.
If mortgage terms feel unfamiliar, the mortgage jargon buster may help. You can also learn more about working with a mortgage adviser in Essex and why you might use a mortgage broker.
Do not forget protection and legal steps
Once your mortgage application is underway, there are other practical steps to consider. You will usually need conveyancing to handle the legal work and home insurance before completion.
Depending on your circumstances, you may also want to review life insurance, critical illness cover or income protection. These products are not suitable for everyone, and policies have terms, conditions, exclusions and eligibility requirements.
FAQs
What do the latest FCA figures show?
They show that first-time buyer lending accounted for 27.3% of owner-occupier house purchase advances in Q2 2026, the lowest share since Q1 2024.
Does this mean first-time buyers cannot get mortgages?
No. Buyers can still apply, but lenders will assess affordability, credit history, deposit and the property.
Should I get an agreement in principle?
It may help you understand a possible borrowing range, but it is not a mortgage offer or a guarantee.
What can make a first-time buyer application harder?
Low deposit, credit issues, high commitments, variable income or missing documents can all affect lender decisions.
Can Alexandra Hamilton help me prepare?
You can complete a mortgage enquiry or contact Alexandra Hamilton to discuss your circumstances. Any recommendation would depend on your needs, affordability and available products.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances and will be agreed with you before proceeding, but we estimate this to be £995.
