Buying a Home in Your 20s: A Practical Guide

Average First Time Buyer age is 34 in 2025, but can you buy in your 20s?

Average age of a First Time Buyer in the UK, is reported by some High Street Lenders, to be 34. In London, the average age is 37, according to Money Supermarket. Why? House prices, cost of borrowing and affordability are the most common observations. 

However, you don’t need a perfect timeline, a perfect credit score or a massive deposit to start. You just need a plan that fits you. 

It’s not about rushing. It’s about being informed, prepared and knowing your options so you can make the move when it’s right for you.

The Mortgage Broker have done a study on the last 150 first time buyers mortgages for clients who were in their 20’s. The study was from our clients across the UK.

Age split:

• 20-24 years old = 26%
• 25-29 years old = 74%

Mortgage details:

• Average loan size £206,674 
• Average mortgage term is 32.9 years
• Initial Fixed Rate Average 2 years
• Average interest rate 4.71%

So whilst many first time buyers get their keys in their mid 30s, don’t think you can’t buy in your 20’s. If you start preparing properly now, you can get ahead of the curve.

Our role at The Mortgage Broker is to make your journey more transparent, easier and most of all… totally achievable, whether you are six weeks or 18 months away!

What this first time buyer guide will do

• Show you the most realistic routes to a mortgage in your 20s
• Give you a step by step plan to get mortgage ready
• Explain what lenders actually look for (and how to present yourself well)
• Share real wins from clients in their 20s (add your data below)

Why buy in your 20s?

Buying young isn’t about rushing. It’s about using time to your advantage:

• You finish earlier. Start a 30 year mortgage at 25 and, all else equal, you could be mortgage free by 55.
• More time in the market. Property values and your equity can grow for longer.
• Stability vs. rent increases. Fixed mortgage payments can bring certainty; rent rarely offers that.
• Progress you can measure. Each repayment reduces your balance; each year can improve your rate options.

And if you’re not ready today, that’s fine, getting ready is still forward motion.

The 6 Step Mortgage Ready Plan as a First Time Buyer.

1) Map your affordability (today and 6–12 months out)

• Tot up income (basic + regular extras), regular commitments and typical spend.
• Use a cautious budget first; we can then test lenders’ criteria to set realistic targets.
• If you are close but not quite there, we can outline a 90 day and 180 day improvement plan.

2) Make your credit file “boringly tidy”

• Check your multi agency credit file. You can view this with our partner: CheckMyFile – Please note: Check My File offers a FREE 7 Day trial that will enable you to download your current credit report. Please remember to cancel the subscription within 7 days, if you do not wish to continue with this service.
• Fix errors, align addresses and add voter registration.
• Bring balances below 25–30% of their limits where possible; avoid new credit in the run up to applying.

3) Build your deposit (there are more routes than you think)

• Standard savings: Aim for 5–10% as a starter; the more the better of course as higher deposits can improve pricing.
• Family boost options: Gifted deposit; joint borrower, sole proprietor (JBSP); or family‑assist products that use a relative’s savings as security.
• Government/industry schemes: Where available these can reduce the deposit or purchase price (e.g., shared ownership, First Homes style discounts, LISAs). We can confirm what’s active and suitable for you across England, Wales and Scotland.

4) Strengthen the application story

• Consistency wins. Stable income, regular payslips, clean bank conduct. Self Employed income absolutely fine but get advice on how to package it.
• Explain life events. If you have had a blip, a clear note helps underwriters see the full picture and there are many bad credit mortgage solutions. 
• Paperwork ready. ID, proof of address, 3–6 months’ payslips & bank statements, P60, and deposit evidence. SA302’s if self employed.

You don’t need paperwork for a Mortgage in Principle (MIP). (Also known as Agreement in Principle (AIP) and Decision in Principle (DIP).

We can run a mortgage in principle very quickly, and without affecting your credit score, you can understand your mortgage position today. Book a free appointment with one of our mortgage experts, who can explain and run you a MIP today.

Free Appointment

5) Explore fit for you structures

• Fixed vs. variable: Payment certainty vs. flexibility. Interest only an option for the right profile and circumstances.
• Term length: A longer term lowers payments now; you can overpay later when affordable.
• Buying with someone: Joint applications can boost affordability but be clear on ownership shares and exit plans.

6) Offer to keys game plan

• Mortgage in Principle → viewings → offer → full application → valuation → offer issued → conveyancing → exchange → completion.
• We’ll project‑manage the timeline, so you know exactly what’s next.

The Mortgage Broker offer free, no obligation advice, free market searches, rate checks, affordability and mortgage in principle. Fees only apply if you chose to proceed and we complete a full mortgage application and it is successful. 

No Mortgage Offer = No Fee. No matter how many times you want to talk or check your options. We are here to help.

Get advice today.

Call Us 0800 0320 316

Or Book a Free Mortgage Appointment

Realistic routes people in their 20s use

• 5% 10% deposit mortgages with mainstream lenders (subject to criteria).
• Shared Ownership to buy a percentage now and staircase later.
• First‑time buyer discounts/priority schemes where available locally.
• Family assist/JBSP/guarantor style solutions to boost affordability without gifting cash outright.
• “Track record of rent” assessments (available from select lenders at times) if you’ve been renting reliably. There are some 100% mortgage options with no deposit. These are only available from time to time, and on specific criteria.

We can match you to current, suitable options and explain the trade offs in plain English.

 

What lenders actually look for

• Income: Basic salary is king; regular overtime, bonuses or commissions can count. Self Employed mortgages are all about presenting stability and consistency.
• Commitments: Loans, BNPL, credit cards and childcare all impact the number.
• Conduct: Overdraft use, gambling markers and bounced payments are red flags; a tidy 3–6 months helps.
• Deposit/source of funds: Clear, evidenced, and compliant.
• Property type: Some flats (e.g., above certain shops, or with cladding issues) have tighter criteria.

Fast wins if you’re close but not quite there

• Pay down a small revolving balance to lift your score and affordability.
• Nix unused subscriptions; trim discretionary spend 60–90 days pre‑application.
• Add to the deposit via a one‑off top‑up (bonus, gift, ISA transfer) to improve product pricing.
• Consider a slightly longer term now with a plan to overpay when your income rises.

First Time Buyer FAQs

Questions answered by Adeleen Roberts, Mortgage Advisor with The Mortgage Broker. CeMap qualified and 5+ years experience.

Can I really get a mortgage in my 20s?
Yes, lenders consider from 18+ (subject to status). The key is stable income, sensible commitments and clean conduct.

Do I need a huge deposit?
Not necessarily. Many first time buyer products start from 5% deposit. Shared ownership or family assist can help too. As mentioned above, there are some 100% mortgage options, though of course with strict criteria.

What if my credit isn’t perfect?
Options still exist. The story behind any blips, plus recent good conduct, can open doors with the right lender. Many lenders have options for credit files that aren’t perfect, and we work with bad credit specialist mortgage lenders.

Is it risky if I might move in a few years?
Not inherently. Choose the right product/term, consider portability, and understand early repayment charges. Plus understanding the costs around stamp duty.

Is buying always better than renting?
Not always. Renting offers flexibility. If your job or plans are in flux, we can build a medium term plan while you prepare.

Expert tip from Adeleen Roberts: Start the conversation before you think you’re ready. A quick sense check now can save months later and sometimes turns “one day” into “this year.”

Bring your numbers. We will make a plan.

• Free mortgage review: we can map affordability, deposit routes and a timeline tailored to you.
• Document checklist & MIP: so you can view properties with confidence.
• Local scheme check: we can confirm what’s open in your area right now.

Get started

 

Or call us: 0800 0320 316

Important notices

Your home may be repossessed if you do not keep up repayments on your mortgage. If you consolidate existing borrowing, you may pay more over the long term.

This guide provides general information only and does not constitute personal advice. Product availability and eligibility change over time; we’ll confirm current options for your circumstances.