Best Mortgage Rates for First Time Buyers

First-time buyer mortgages explained

What defines a first-time buyer in the UK?

A first-time buyer (FTB) is defined in the UK as someone looking to purchase their first home who has never owned a residential property in this, or any other country. A growing number are able to get on the ladder too, with Government figures showing that there were around 967,000 recent first-time buyers in England in 2024-25, while additional figures from Lloyds Bank show that almost half (46.3%) of all mortgaged purchases in Great Britain in 2025 were by FTBs (excluding London).

Note that if you buy with someone else, they also need to be a first-time buyer in order for the purchase to be classified as such. This means you may not be classed as a first-time buyer if you buy with someone who’s owned a home previously, or similarly, if you inherit property.

What do you need to get a mortgage as a first-time buyer?

There are a couple of things first-time buyers need to get started on their journey to homeownership:

• Deposit: This is the amount paid upfront for a home. In the last three months of 2025, data from UK Finance revealed that the average deposit for first-time buyers was £63,855, based on a typical deposit of 22% . However, the amount you need to save will vary depending on the property and its location, and you can actually find first-time buyer mortgages that only ask for 5% of the value of your prospective future home, and there are even a few 100% LTV mortgages available. However, the greater the deposit, the lower the mortgage rate is likely to be, so it’s often worth saving more than the minimum to reduce your loan-to-value.

• Good credit score: As a mortgage is a type of loan, lenders will take your credit score into consideration to determine whether you can be trusted to meet repayments. A high credit score generally means you’re more likely to be accepted for a mortgage. Before applying, it’s good practice to check your credit score and take steps to improve it if necessary. Find out what factors affect your creditworthiness and how to improve your credit score using our dedicated guides.

• Income/employment: You’ll need to pass affordability checks to prove to prospective lenders that you can afford the mortgage, and a key part of that will be having suitable income and employment. Lenders will often apply an income multiple to determine how much you can borrow, and will thoroughly analyse your outgoings to determine affordability. Bear in mind that it can be more difficult for those who are self-employed or on zero-hour contracts to be approved for a mortgage. You can find out more in our guide to the income you can use for a mortgage application.

How much could I borrow?

The amount of money a lender is willing to loan you as mortgage not only depends on your deposit and credit score, but other factors such as your regular incomes and outgoings.

Generally speaking, the maximum amount you can borrow is 4.5 times your income (although some lenders may offer higher multiples in a bid to tackle the issue of affordability faced by many first-time buyers).

However, as a lender will also consider your expenditures (such as tax and utility bills, insurance premiums and other debt repayments) to determine whether you could afford the monthly repayments, keep in mind you may not necessarily be eligible for the maximum loan.

In any case, stretching affordability by taking out the maximum loan could leave you facing difficulty if interest rates were to rise, or if you were suddenly unable to meet repayments for some other reason.

For further details, or for an indication of how much you may be able to borrow, visit our mortgage calculator.

What is an agreement in principle?

Also known as a ‘mortgage in principle’ or a ‘decision in principle’, an agreement in principle (AIP) is an indication from a lender as to how much you may be able to borrow, and is an important part of the mortgage process.

While it’s not compulsory for first-time buyers, an agreement in principle could provide a realistic budget for your property search and demonstrate your commitment to a seller or estate agent. But, remember an AIP is not legally binding and by no means guarantees a lender will make you an offer.

What does LTV mean?

The loan-to-value (LTV) reflects the amount of money you’re borrowing as a mortgage versus a property’s overall worth. The lower the LTV, the more of the property you own outright (also known as having ‘equity’).

Generally speaking, you’ll pay a higher interest rate (and therefore more expensive monthly repayments) on a mortgage that caters for a higher LTV, and vice versa.

To work out what LTV ratio you may need, use our dedicated loan-to-value calculator.

How long does it take to get a mortgage for the first time?

Once you’ve done the groundwork in finding your first home, the mortgage application process itself can take anywhere from two to six weeks. The process will involve filling out an application form – you’ll need to provide things like proof of income, ID and where the deposit is coming from – after which you’ll undergo affordability and credit checks. It’s worth knowing what credit score you’ll need for a mortgage before you start, and how you can boost your chances of being accepted for a mortgage. By six weeks, you should know if you’ve been approved or not.

However, there are further steps you’ll need to take before getting the keys to your property, such as:

• Getting a house survey: Also known as a home survey, this is where an expert surveyor inspects the condition of a property and identifies any faults or potential issues. While not a legal requirement, it’s often highly recommended to determine whether a property is worth the asking price. Depending on how thorough the survey is, it can take anywhere from a few days to a couple of weeks to receive the results.

• Conveyancing: The process of legally transferring ownership of a property, conveyancing includes exchanging contracts and completion (at which point the sale becomes finalised). The timeline varies depending on whether there is a chain (linked property purchases) but can take anywhere up to 16 weeks or more.

How can I improve my chances of getting a mortgage as a first-time buyer?

There are plenty of things you can do to improve your chances of being accepted for a mortgage. We discuss them in more detail in our guide, but here are a few tips to get you started:

• Save up as much as you can for the deposit. While high-LTV mortgages are available, you’ll be a safer prospect to a lender if you can save a bit more, plus the mortgage rates you’re offered will likely be lower.

• Improve your credit score. If yours is less than ideal, it can reduce your chances of being accepted. Find ways to improve your score before you apply.

• Review your spending. Lenders will carefully assess your money management before offering you a mortgage, so make sure you’re not spending frivolously. Read our guide on how to make a budget if you need help cutting back.

• Manage credit commitments effectively. You should ideally repay as much debt as you can before applying for a mortgage, but at the very least make sure you’re managing any current debts effectively. This means repaying more than the minimum each month, avoiding forms of high-cost credit, and not applying for other credit in the six months before your mortgage application.

• Don’t move jobs. Lenders like seeing that you have a stable income, so try to avoid moving jobs too much ahead of your application. It can be particularly difficult to be approved if you’re still in a probationary period, or if you’ve only recently gone self-employed, as lenders typically need at least two years’ worth (sometimes three) of accounts for an application.

What are the fees when getting a first-time buyer mortgage?

There are more costs to consider aside from the deposit when it comes to buying your first home, including:

• Surveyor fees: This is the cost of an expert completing a survey of your prospective home and can range from a few hundred pounds to over £1,000 depending on the complexity of the property and level of detail.

• Legal fees: Cover the cost of solicitor or conveyancer undertaking all the necessary paperwork on your behalf (and any third-party costs they may incur) to ensure you become the legal owner of your property. Again, the amount can vary but it’s worth putting aside between £1,000 and £2,000 to cover these fees.

• Product fees: This can include arrangement fees and reservation fees (also known as ‘application’ or ‘booking’ fees) charged by a lender. Some mortgage deals may come with no upfront costs, while others cost in the region of £1,500.

• Broker fees: If you opt for the help of a mortgage broker, this will either cost a flat fee or incur a charge equivalent to a small percentage of the loan.

• Stamp Duty: Stamp Duty Land Tax (SDLT) applies to properties bought in England and Northern Ireland. Currently, first-time buyers don’t need to pay any Stamp Duty unless purchasing a property for more than £300,000. Similarly, purchases in Scotland will be subject to Land and Buildings Transaction Tax (LBTT), and in Wales it’s Land Transaction Tax (LTT).

• Mortgage Payment Protection Insurance (MPPI): After successfully getting a mortgage, you’ll need to consider whether you’d still be able to meet repayments if you were unable to work due to ill-health or unemployment. If not, you could consider taking out mortgage protection insurance; this type of policy is paid out monthly for up to a year after a successful claim (or until you return to work, whichever is sooner) and, in some cases, can cover up to 125% of your mortgage repayments.

• Home insurance: As a first-time homeowner, you may also want to protect your property (and its contents) against unexpected damage by taking out home insurance.

For a more detailed breakdown of the fees involved with getting a mortgage as a first-time buyer, read our guide on the costs of buying a home.

What type of mortgage should I get?

When it comes to selecting a deal, there is no ‘one-size fits all’ – the best mortgage deals for first-time buyers ultimately depend on their needs, circumstances and attitudes. Some of the most common types you may encounter include:

Fixed rate mortgages

The interest rate charged by this type of mortgage is guaranteed to remain the same over the course of a fixed term. While this can protect against rate hikes, it could also prove less cost-effective if rates were to decline

Variable rate mortgages

In contrast, interest rates charged by variable mortgages can increase or decrease with little notice, either in response to the wider economic climate, to manage consumer demand and/or to help a lender meet internal targets. Standard Variable Rate (SVR) and discounted variable deals are two examples.

Tracker mortgages

A tracker mortgage is another type of variable deal with a rate guaranteed to rise and fall in line with the UK’s central interest rate. For this reason, you’ll often find them advertised as charging equivalent to the Bank of England base rate, plus or minus a set percentage.

Guarantor mortgages

Guarantor mortgages could give you a lift onto the property ladder if you have a poor credit score or lack a deposit. They involve a guarantor (often a close family member) using their own property or savings as collateral for your debt. Failing to meet mortgage repayments could result in a guarantor’s assets being repossessed.

Our guide to finding the best type of mortgage provides more information on these, and other available options.

Are there any banks or building societies that specialise in first-time buyer mortgages?

Although there aren’t any particular lenders that specialise in mortgages for first-time buyers, some offer specialist deals to support those who don’t meet standard criteria, including those that can offer mortgages if you have no deposit.

In particular, following the Bank of England relaxing rules over the proportion of high loan-to-income (LTI) mortgages that can be offered, several lenders now offer mortgages that exceed 4.5 times a borrower’s income, which could be a great boost to affordability given how quickly house prices are rising compared with incomes.

The Helping Hand range from Nationwide Building Society, for instance, lets first-time buyers borrow up to six times their income with either a five- or 10-year fixed mortgage at up to 95% LTV. Similarly, Leeds Building Society’s Income Plus deals lend first-time buyers up to 5.5 times their salary. Both of these product ranges can be found on our charts.

There are also deals that can be accessed by first-time buyers with a poor credit score, such as the Reach range from Leeds Building Society, or those who don’t have a deposit. Skipton Building Society’s Track Record Mortgages, for example, accept a proven track record of paying rent in place of a deposit. However, as these and a number of other deals don’t meet the conditions to feature on our chart, you may wish to seek expert advice to explore all options available and for help finding a deal that best meets your needs.

More support could be on the cards for first-time buyers too, with the Financial Conduct Authority (FCA) seeking to further simplify mortgage rules to allow more flexibility in mortgage lending. This means first-time buyers could be even better served in the future, as well as the self-employed and those with other non-traditional working patterns.

Are there any first-time buyer schemes? What help is available?

The Government also offers help for first-time buyers; below, we summarise a handful of its schemes, but remember other support may be available depending on your circumstances and where in the UK you live.

Lifetime ISAs

If you’re aged 18 to 39 and saving towards a deposit for your first home, a Lifetime ISA could provide a welcome cash boost. Not only does this type of savings account earn tax-free interest, but the Government also applies a 25% bonus to contributions of up to £4,000 per year. This means you could receive up to £1,000 extra per year, and will be able to earn interest on top of that additional amount too. Then, when it’s time to make your deposit, your conveyancer will act on your behalf to transfer funds to the mortgage provider.

Introduced in 2017, the Lifetime ISA replaced Help to Buy ISAs which are now closed to new customers. The LISA is currently in the process of being reviewed, with the Government consulting on introducing a new savings vehicle designed purely for first-time buyers, unlike the LISA which can also be used for retirement savings.

First Homes

With affordability often another obstacle to getting on the property ladder, the First Homes scheme offers new-build properties to first-time buyers in England at a minimum 30% discount. This means eligible borrowers can purchase a property with a smaller deposit and will have lower monthly repayments.

That being said, there are a limited number of these properties available, and councils may give priority to keyworkers, local residents or low earners. Furthermore, if you later decide to sell your property, the prospective buyers also need to meet the scheme’s eligibility criteria and must receive the same discount.

Shared ownership

Similarly, if you have a smaller deposit or want lower monthly repayments, you could consider shared ownership. This Government scheme allows you to purchase a portion of a property (either with savings or by taking out a mortgage) while paying rent on the remainder.

Over time, you can increase the portion of the property you own by buying more shares, a process known as staircasing. You may eventually be able to own 100% of your home through this scheme.

Right to Buy

If you’re a public sector tenant, meanwhile, the Right to Buy scheme could allow you to purchase your council home at a discount. The amount discounted will depend on the type of property, the region and for how long you’ve been a council tenant, but ranges from 35% to a maximum 70%.

Mortgage Guarantee Scheme

The Mortgage Guarantee Scheme supports first-time buyers with small deposits by incentivising lenders to offer deals that can finance higher LTV ratios. The scheme was launched on a permanent basis by the Government in July 2025 after a temporary precursor came to an end.

Why does the Government want to support first-time buyers?

Governments often want to support first-time buyers onto the property ladder as homeownership can be good for the economy.

As more people look to buy homes, the increased demand can drive up property prices which in turn makes homeowners wealthier and more willing to spend – aiding the wider economy. It also generates the need for new homes, thus creating jobs for the likes of developers, tradespeople and estate agents.

In contrast, less demand could cause property prices to stagnate or even decline; under these circumstances, homeowners run the risk of falling into negative equity (where their property is worth less than the outstanding loan) and may limit their spending.

How to find the best deal

When it comes to finding the best mortgage for first-time buyers, there’s no one deal that suits all. Instead, the best first-time buyer mortgage will depend on the type of deal you’re after, the length of the initial term and the size of your deposit. And, even though the lowest mortgage rates may be appealing, bear in mind these deals won’t always be the most cost-effective.

Instead, while you should always compare mortgage rates when looking for the best deal, it’s important to consider the whole package. Other factors you should consider include:

• Are there any product fees?
• Are there any added incentives? (e.g. a free valuation, free legal fees, cashback etc.)
• Does it allow overpayments?
• For how long do you want to fix? (If opting for a fixed rate mortgage.)

These details can all be found on our mortgage charts by selecting ‘Product Specification’ next to a listing, giving you a complete overview of the deal so you can be confident it’s the right fit for you and your circumstances.

What influences mortgage rates?

There are several factors lenders consider to determine their mortgage pricing, including:

• Bank of England base rate: Sometimes referred to as the ‘bank rate’, this is the amount the Bank of England charges other banks and building societies to borrow its money. You can find out more about the relationship between the central interest rate and mortgage rates with our guide to the UK base rate and how to respond to changes.

• Swap rates: Swap rates, meanwhile, reflect market predictions for how interest rates will move in the future.

• Supply and demand: How many people are looking to buy a home and whether there are enough properties available.

In turn, each of these can be affected by the wider economic climate. For instance, mortgage rates skyrocketed between December 2021 and August 2023 after the Bank of England hiked the base rate 14 consecutive times in an attempt to tackle chronically high inflation.

Will mortgage rates go up or come down?

At the time of writing (May 2026), experts are warning that mortgage rates could edge up in the coming months following recent falls, as both inflation and base rate are expected to rise due to global uncertainty. Prospective first-time buyers would therefore be wise to review rates regularly and consider seeking advice if uncertain.

Is now a good time to buy my first home?

This entirely depends on your personal circumstances. If you have a stable income with a decent deposit saved, then it could be a great time to buy, but concerns over house prices and mortgage costs could understandably be impacting your decision. Confusion over finding the best first-time buyer mortgage rates could also be weighing heavily, as it can be difficult to know if you’ve got the best deal. If you’re unsure or want specialist first-time buyer mortgage advice, make sure to speak to a broker.

Should I speak to a mortgage broker?

Speaking to a broker could remove a lot of the paperwork and hassle involved with getting a mortgage, while also gaining you access to exclusive products and rates that aren’t available to the public.

Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to obtain specific qualifications before they can give advice.

For more information, consult our guide on whether to use a mortgage broker.

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