Using Habito as a first-time buyer: a complete 2026 guide

The Habito process for first-time buyers

First-time buyers using Habito begin with an online fact-find covering employment status, income, the deposit amount and source, the property value and type, and any credit history issues. The process takes approximately 15 to 30 minutes and produces a list of mortgage products available from Habito's lender panel ranked by total cost. The first-time buyer selects a product and progresses the application digitally, with a qualified mortgage adviser available by online chat or telephone throughout.

Habito provides a mortgage in principle (also called an agreement in principle or decision in principle) as part of the process. A mortgage in principle is a conditional indication from the lender that they would be willing to lend the requested amount subject to full underwriting. Estate agents and sellers typically expect buyers to have a mortgage in principle before offers are accepted; Habito's process is structured to produce this document efficiently.

Deposit requirements

The minimum deposit for a residential mortgage in the UK is 5% of the property value for first-time buyers using mainstream lenders. A 5% deposit product is available through Habito's lender panel, though the available products at this deposit level are fewer and the rates are typically higher than for larger deposit levels. First-time buyers with a 10% or 15% deposit access a substantially larger product range and materially lower rates.

The source of the deposit is assessed by all lenders. A gifted deposit from a parent or family member is accepted by most lenders but requires a signed letter from the donor confirming the money is a gift and not a loan and that they have no interest in the property. Habito guides borrowers through the documentation requirements for gifted deposits as part of the application process.

First-time buyer schemes Habito can access

Habito's lender panel includes lenders offering mortgages under government-backed first-time buyer schemes where these remain available. The Help to Buy equity loan scheme closed to new applications in October 2022 and is no longer available. Shared ownership mortgages, where the buyer purchases a share of a property from a housing association and pays rent on the remainder, are available through some lenders on Habito's panel. The Mortgage Guarantee Scheme, which supports 95% loan-to-value mortgages, has had various iterations and first-time buyers should confirm current availability with Habito at the time of application.

Lifetime ISA savings can be used toward a first-time buyer mortgage deposit through Habito. The LISA provides a 25% government bonus on savings up to £4,000 per year, producing a maximum annual bonus of £1,000. LISA funds can only be used for a first property purchase where the property value does not exceed £450,000. Habito advisers can confirm the LISA rules and how the savings integrate with the overall deposit calculation.

Stamp duty for first-time buyers

First-time buyers purchasing a primary residence in England pay reduced stamp duty land tax (SDLT) relative to other purchasers. As of June 2026, first-time buyers pay no SDLT on the first £425,000 of the purchase price, and 5% on the portion between £425,001 and £625,000. Properties above £625,000 do not qualify for first-time buyer SDLT relief. These thresholds were introduced in the September 2022 mini-budget and are scheduled to revert in April 2025; buyers should confirm the current thresholds at the time of purchase via HMRC or a solicitor.

Habito One for first-time buyers

Habito One's long-term fixed rate option is available to first-time buyers as well as existing homeowners. For a first-time buyer committed to a property for the long term and anxious about rate uncertainty, Habito One provides certainty over the mortgage payment for up to 40 years. The rate premium versus short-term fixed rates is the primary trade-off. First-time buyers who want to explore Habito One alongside standard market products can do so through Habito's platform, which presents both options.

Frequently asked questions

Is Habito good for first-time buyers?

Habito is a legitimate option for first-time buyers with straightforward employed income, a standard deposit and a standard property. The free online service, 90+ lender panel and digital-first process suit first-time buyers who are comfortable managing the application online. First-time buyers with complex income, non-standard deposits or non-standard properties should also consult a telephone-based broker with experience in complex first-time buyer cases.

Does Habito do Help to Buy mortgages?

The Help to Buy equity loan scheme closed to new applications in October 2022 and is no longer available. Habito's lender panel includes lenders for shared ownership and other first-time buyer schemes. First-time buyers should confirm which schemes are currently available with Habito at the time of application, as first-time buyer scheme availability changes with government policy.

How long does a Habito mortgage application take?

The initial fact-find and product comparison through Habito takes approximately 15 to 30 minutes. A mortgage in principle can typically be obtained within one to two days of starting the process. Full mortgage application to formal offer typically takes four to eight weeks for standard residential purchases, depending on the lender's processing speed and any issues arising in the underwriting process. Habito provides a case manager to track progress and communicate updates throughout.

Can I use a Lifetime ISA with Habito?

Yes. Lifetime ISA savings can be used as part of the deposit for a first-time purchase through Habito, subject to the LISA rules: the property must be the buyer's first home, the purchase price must not exceed £450,000, and the funds must have been held in the LISA for at least 12 months. Habito advisers can guide first-time buyers on how LISA savings integrate with the deposit calculation and any lender-specific requirements.