First-Time Buyer Mortgages in the UK
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A first-time buyer mortgage is a home loan for people buying their first property, and many UK lenders accept a deposit from 5% of the price. This page explains how first-time buyer mortgages work in the UK, how much deposit you may need, what support is available, and how to apply, so you can plan your next step with confidence.
What is a first-time buyer mortgage?
A first-time buyer mortgage is a loan used to buy a home when you have never owned a property before, in the UK or abroad. The loan is secured against the property you buy, and you repay it, plus interest, over a set term. Most first-time buyers choose a term of 25 to 35 years.
First-time buyer mortgages are offered by high street banks, building societies, and specialist lenders. Some lenders design products with first-time buyers in mind, such as lower-deposit options. Others simply apply their standard residential rules. Either way, what matters is how the rate, fees, and lending criteria fit your situation.
The main rate types are:
- Fixed rate: your interest rate and monthly payment stay the same for an agreed period, often two, three, or five years.
- Tracker: your rate follows the Bank of England base rate, so payments can rise or fall.
- Variable rate: the lender can change your rate at any time.
Most first-time buyers choose a repayment mortgage, where each payment reduces both the interest and the amount you owe. For a clearer overview of each type, see our guide to mortgages explained.
How much deposit do you need?
Most lenders offering first-time buyer mortgages ask for a deposit of at least 5% of the purchase price. The bigger your deposit, the lower your loan-to-value (LTV) and, in general, the better the interest rates available to you.
For a £200,000 home, a 5% deposit is £10,000, while a 10% deposit is £20,000. Many lenders offer 95% LTV mortgages, and a government-backed guarantee scheme exists to support them. A small deposit can mean higher rates and monthly payments, so it helps to compare options before you decide.
How much can you borrow?
When you apply for first-time buyer mortgages, lenders look at your income, but they also check your outgoings. They often offer around four to four and a half times your annual income, and some go higher in certain cases. They will also consider:
- your debts, credit cards, and loans
- childcare, dependents, and regular bills
- your credit history
- whether you could still afford the payments if interest rates rose
To get a rough idea of your monthly payments, try our mortgage calculator.
The other costs of buying your first home
Your deposit is only part of the budget. Plan for:
- Stamp duty: see the table below.
- Solicitor or conveyancer fees
- Valuation and survey costs
- Mortgage arrangement or product fees
- Moving costs
First-time buyer stamp duty (England and Northern Ireland)
| Part of the purchase price | Stamp duty rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Home costs more than £500,000 | No first-time buyer relief; standard rates apply |
On a £400,000 home, that is £5,000. Scotland and Wales have their own taxes and thresholds.
If you buy with someone who has owned a home before, you will not qualify for first-time buyer stamp duty relief.
Government schemes and support in 2026
Several schemes may help with first-time buyer mortgages and deposits, depending on where you live and your circumstances:
- Lifetime ISA: you can save up to £4,000 a year and the government adds a 25% bonus, for a home costing up to £450,000.
- Mortgage Guarantee Scheme: made permanent in July 2025, it encourages lenders to offer 95% LTV mortgages. You do not apply to it directly, as it works through participating lenders.
- Shared Ownership: you buy a share of a home and pay rent on the rest. These homes are usually leasehold, so rent and service charges apply on top of your mortgage.
- First Homes: new-build homes at a discount of at least 30% for eligible buyers, with household income limits. Availability depends on your local area.
The Help to Buy equity loan has ended in England, so do not plan around it. Schemes differ in Scotland, Wales, and Northern Ireland, and rules change, so always check the official government website for the latest details.
How to choose the best first-time buyer mortgage
The lowest headline rate is not always the best deal. When you compare first-time buyer mortgages, look at:
- the total cost, including product and arrangement fees
- how long the rate is fixed and what happens when it ends
- early repayment charges if you want to leave the deal early
- how much you can overpay each year without a penalty
- whether you can take the mortgage with you if you move
- the lender's criteria for your type of income, such as self-employment
How to apply for a first-time buyer mortgage
- Check your credit report. Fix any errors and make sure you are on the electoral register.
- Set a realistic budget. Include all the costs above, not just the monthly payment.
- Build your deposit. A Lifetime ISA may help if you qualify.
- Get an agreement in principle. This shows sellers you are serious and gives you an idea of what a lender may offer.
- Speak to a mortgage adviser. An adviser can compare first-time buyer mortgages and explain which lenders suit your circumstances. You can get a free quote to start.
- Make your application. Lenders usually ask for ID, proof of address, recent payslips, and bank statements.
- Valuation, legal work, and completion. Your solicitor handles the legal checks, and once contracts are exchanged you complete and get the keys.
Common mistakes to avoid
- Focusing on the monthly payment and ignoring fees and the end of the fixed period
- Forgetting stamp duty, legal costs, and moving costs
- Applying to several lenders at once, which can leave multiple searches on your credit file
- Taking on new credit, or changing jobs, before your mortgage completes
First-time buyer mortgage FAQs
How much deposit do I need for a first-time buyer mortgage?
Most lenders ask for at least 5%, though a larger deposit usually gives you access to lower rates.
Do first-time buyers pay stamp duty?
In England and Northern Ireland, you pay nothing on the first £300,000 and 5% on the portion up to £500,000. Above £500,000, the relief does not apply.
Can I get a mortgage with a poor credit history?
It can be harder and rates may be higher, but some lenders consider applicants with a weaker credit record. An adviser can tell you which options may suit you.
How long does buying a home take?
From an accepted offer to completion, it often takes around two to three months, although it varies.
Can I buy with a partner or friend?
Yes. Joint mortgages are common. For stamp duty relief, everyone buying must be a first-time buyer.