Buying your first home is a huge milestone—but if you're new to mortgages, the process can feel like learning another language. At We Do Mortgages, we’re here to translate the jargon into plain English.
This glossary is written with first-time buyers in mind. It explains the key terms you're likely to encounter at the start of your journey—from deposit schemes to credit checks, solicitor fees and more.
Key Terms for First-Time Buyers
Agreement in Principle (AIP)
Sometimes called a Decision in Principle, this is a statement from a lender showing how much they might lend you, based on your initial financial details. It strengthens your offer when viewing homes and is often needed before booking property viewings.
Gifted Deposit
A deposit that’s been given to you—usually by a parent or family member—with no expectation of repayment. Lenders will ask for a signed declaration from the giver, confirming it's a gift. This is a common way for first-time buyers to bridge the gap between savings and deposit requirements.
First Homes Scheme
A UK Government initiative offering eligible first-time buyers a 30–50% discount on new-build homes in their local area. To qualify, your income must be below £80,000 (£90,000 in London), and price caps apply.
Learn more on gov.co.uk
Lifetime ISA (LISA)
Though the Help to Buy ISA has closed to new applicants, Lifetime ISAs (LISAs) are still open and allow you to save up to £4,000 per year, with the government adding a 25% bonus (up to £1,000/year) when used for your first home. These savings can be crucial in boosting your deposit.
Credit Score
A numerical score that reflects your borrowing history, income, and debt levels. Lenders use it to assess whether you’re a reliable borrower.
Tip: Check your score regularly with tools like Experian or ClearScore before applying.
Improving your credit can help unlock better rates.
Conveyancing
The legal process of transferring ownership of the property from the seller to you. A solicitor or conveyancer will handle contracts, searches, and local authority checks to make sure the sale is secure and legal. Expect costs of around £1,000–£1,500, depending on the property.
Stamp Duty Land Tax (SDLT)
As a first-time buyer in 2025, you don’t pay SDLT on properties up to £300,000. Above this, 5% SDLT on the portion from £300,001 to £500,000. And if the price is over £500,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before. Please refer to https://www.gov.uk/stamp-duty-land-tax/residential-property-rates for more information
Check what you’ll pay using our Stamp Duty Calculator and read more on our blog: 2025 Stamp Duty Changes.
Fixed vs Variable Mortgage
- Fixed-rate mortgages offer stable payments for a set period—ideal for budgeting.
- Variable or tracker rates can go up or down depending on interest rates.
Chat to us about the most suitable mortgage type for you.
Useful Links for First Time Buyers
- First-Time Buyer Mortgage Services
- Learn about our team
- Meet our team
- Stamp Duty Calculator
- Learn more about our mortgage process
- GOV.UK First Homes Scheme
Ready to Start Your Home-Buying Journey?
We know how much there is to take in—but you don’t have to do it alone.
At We Do Mortgages, we specialise in helping first-time buyers take their first steps onto the property ladder.
Get in touch or start your mortgage application here
