What is a first-time buyer mortgage?
A first-time buyer mortgage is a loan designed for individuals looking to purchase a property for the first time. If there are multiple applicants for the mortgage, some lenders may offer first-time buyer deals as long as at least one applicant has never owned a property. However, other lenders may require that all applicants be first-time buyers. Additionally, some lenders may provide first-time buyer mortgage deals to individuals who have not owned a property for a specified duration.
Lenders may offer a variety of different incentives that are designed for first-time buyers. If you are getting started, then you will find useful information in our article, “First-time buyer guide - Everything you need to know about buying your first home”.
How does a first-time buyer mortgage work?
A first-time homebuyer is not able to use equity from the sale of a previous property, so they will usually have to rely on savings for the deposit needed. As a first-time buyer, you may also find that affordability measures are difficult to meet due to a lack of credit history or a low income. According to the Office for National Statistics, you need around 7.7 to 8.3 times the average earnings in the UK to afford an average-priced house. Lenders usually provide an affordability calculator that allows you to work out the amount of money you can borrow based on your income and outgoings.
What help is there for first-time buyers?
First-time buyer mortgages usually offer terms and conditions that make it easier for those taking their first step onto the home ownership ladder. These features can be one or more of those described below.
High loan-to-value (LTV) / Low deposit mortgage
This allows the homebuyer to buy with a smaller amount of money for the deposit. Typically, lenders will allow up to 90% LTV, but specialist lenders may offer mortgage loans to first-time buyers at higher LTVs, such as 95% LTV or even up to 100% LTV. We list some of the best mortgage rates for high LTV borrowers in the tables further down this article.
High income multiples
All lenders impose limits on how much of your income you can borrow for your house purchase - it is sometimes referred to as the loan-to-income (LTI) ratio. A higher LTI feature may allow you to borrow more based on your income.
Guarantor mortgage
A mortgage application that is supported by a family member or friend to boost your affordability.
Shared ownership mortgage
A mortgage that supports the purchase of a property in which you will own a share.
How much do first-time mortgages cost?
First-time mortgages will usually charge relatively high rates of interest, especially if the deposit amount represents a small percentage of the property’s purchase price. However, lenders may offer incentives such as cashback on completion or free valuation services. You should also be aware of other upfront costs, such as conveyancing and stamp duty.
For the purposes of providing the best interest rates, we have assumed a property purchase price of £300,000 and a mortgage that is arranged on a repayment (capital and interest) basis over 25 years. However, rates will vary depending on the amount of money you need to borrow to purchase your home and how much money you can afford to put towards the deposit for your house purchase.
Best first-time buyer mortgage deals with a 5% deposit
| Fixed rate period | Lender | Initial interest rate | Rate after fixed period | Lender fee |
| 2 years | Skipton Building Society | 4.32% | 6.29% | £20 |
| 5 years | Skipton Building Society | 4.48% | 6.29% | £20 |
| 10 years | Virgin Money | 5.19% | 6.49% | £25 |
Rates are based on a £300,000 property price requiring a £285,000 mortgage over 25 years on a repayment basis and are correct as of 24th February 2026
Best first-time buyer mortgage deals with a 10% deposit
| Fixed rate period | Lender | Initial interest rate | Rate after fixed period | Lender fee |
| 2 years | Bank of Ireland | 3.99% | 6.94% | £1,705 |
| 5 years | Nationwide | 4.14% | 6.49% | £1,499 |
| 10 years | Nationwide | 4.89% | 6.49% | £999 |
Rates are based on a £300,000 property price requiring a £270,000 mortgage over 25 years on a repayment basis and are correct as of 24th February 2026
Best first-time buyer mortgage deals with a 20% deposit
| Fixed rate period | Lender | Initial interest rate | Rate after fixed period | Lender fee |
| 2 years | Yorkshire Building Society | 3.74% | 6.74% | £1,085 |
| 5 years | HSBC | 3.97% | 6.24% | £1,016 |
| 10 years | Nationwide | 4.64% | 6.49% | £999 |
Rates are based on a £300,000 property price requiring a £240,000 mortgage over 25 years on a repayment basis and are correct as of 24th February 2026
Best first-time buyer mortgage deals with a 40% deposit
| Fixed rate period | Lender | Initial interest rate | Rate after fixed period | Lender fee |
| 2 years | HSBC | 3.58% | 6.24% | £1,016 |
| 5 years | First Direct | 3.75% | 6.24% | £490 |
| 10 years | Nationwide | 4.35% | 6.49% | £999 |
Rates are based on a £300,000 property price requiring a £180,000 mortgage over 25 years on a repayment basis and are correct as of 24th February 2026
Best first-time buyer mortgage deals with no deposit
These are unique mortgage solutions that may come with extra terms and conditions that have to be considered carefully. You will find more information about 100% LTV or no-deposit mortgages in our article, "No-Deposit Mortgages in 2025: Myth or Reality?".
| Lender / Product | Fixed rate period | Initial interest rate | Rater after fixed period | Lender fee |
| April Mortgages / No Deposit Mortgage | 10 Years | 6.13% | 7.50% | £1,190 |
| 15 Years | 6.33% | 7.50% | £1,190 | |
| Gable Mortgages / Standard Zero Deposit Mortgage | 5 Years | 5.95% | 6.25% | From £2,095 |
| Gable Mortgages / New-build Zero Deposit Mortgage | 5 Years | 5.65% | 6.25% | Paid by the property developer |
| Skipton Track Record Mortgage | 5 Years | 5.22% | 6.29% | £0 |
| Skipton Track Record Mortgage with £1,000 cashback | 5 Years | 5.37% | 6.29% | £0 |
No-deposit mortgage deals are subject to specific qualifying criteria and terms and conditions that will vary depending on the product that you choose - rates are correct as of 24th February 2026
Best first-time buyer guarantor mortgage deals
| Lender / Product | Fixed rate period / Max LTV | Initial interest rate | Rater after fixed period | Lender fee |
| Halifax Fixed Rate Mortgage | 2 Years / 100% LTV | 4.45% | 7.49% | £0 |
| Barclays Springboard Mortgage | 5 Years / 95% LTV | 4.97% | 5.74% | £0 |
| 5 Years / 100% LTV | 5.29% | 5.74% | £0 | |
| Vernon Building Society Discounted Variable | 2 Years / 100% LTV | 4.90% | 7.60% | £0 |
Guarantor mortgage deals are subject to specific qualifying criteria and terms and conditions that will vary depending on the product that you choose - rates are correct as of 1st December 2025
Mortgage types to suit first-time buyers
First-time buyers can apply for most mortgages offered by lenders and also qualify for mortgages specifically designed for those buying their first home. They include fixed and tracker rate mortgages that can be arranged over two, three, five, or ten years, with 2 and 5-year options being the most popular. Additionally, you will need to consider the qualifying criteria for the mortgage, and each lender varies in the criteria it sets out. This can be difficult to gauge and you may require mortgage advice from a mortgage specialist to source the appropriate mortgage solution for your needs.
You can start by using our mortgage rate comparison tool - enter your specific mortgage requirements to find the best mortgage rates.
How to find the best first-time buyer mortgage deals
If you are buying your first home, you will likely find the mortgage market a little overwhelming, as there is a lot of information to understand, and much of the language used is technical. This can be further complicated by lenders' use of different terminology for similar factors. One key reason your mortgage search may be challenging is that most qualifying criteria and affordability assessments are not clearly explained to homebuyers; they require thorough research. This is where a mortgage specialist or broker can be especially useful. They use their knowledge and access to information to guide you to the best mortgage solution, supporting you throughout the process of buying your first home.
If you do not have a mortgage broker, you can source one by using the online directory for financial professionals, Vouchedfor*. The directory allows you to find a mortgage broker based on your locality and you can choose based on customer reviews reflecting the service they provide. You can also contact Habito*, an online mortgage brokerage that offers free mortgage advice. Habito's mortgage advisers are very knowledgeable and can help you source the best mortgage deal for your house purchase and guide you through the application process to completion.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Habito, VouchedFor
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