First-time buyer mortgages

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How to get a first-time buyer mortgage

Buying your first home can feel like a big step, but the mortgage process can be simpler than you might think. Here's what to expect:

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Who qualifies as a first-time buyer?

You're likely to qualify if

You're buying your first home to live in, either on your own or with another first-time buyer
You've never owned a residential property or land in the UK or abroad
You've never inherited or been gifted a residential property in the UK or abroad

You're unlikely to qualify if

You've owned a property before, either in the UK or overseas
You've inherited a property – even if you've since sold it
You're buying with someone who currently owns, or has previously owned, a property
Your parents or someone else who already owns a home is buying the home for you

Buying your first property as a buy-to-let?

For the purposes of residential first-time buyer mortgages and HMRC's definition of first-time buyer relief, you must intend to live in the property as your only or main residence. If you're buying a property to rent out, you won't qualify as a first-time buyer for those purposes.

However, if you've never owned a property before, some lenders offer first-time buyer buy-to-let mortgages. These are different from residential first-time buyer mortgages and have their own eligibility criteria. Taking out one doesn't make you a first-time buyer for residential mortgages or first-time buyer tax relief.

How much deposit does a first-time buyer need?

You'll usually need a deposit of at least 5% of the property's purchase price to get a first-time buyer mortgage, although a couple of lenders offer 100% (zero-deposit) mortgages.

The size of your deposit affects your loan-to-value (LTV) – that's the percentage of the property's value you'll need to borrow. For example, if you put down a 10% deposit, you'll need a 90% LTV mortgage to cover the rest of the property price.

As a general rule, a bigger deposit gets you access to lower mortgage rates and smaller monthly repayments. It can also lower the risk of falling into negative equity (where you owe more than the home is worth) if house prices drop.

The table shows how much you’d need to save for different size deposits on a £225,000 home.

Deposit percentage	Amount needed
5%	£11,250
10%	£22,500
15%	£33,750

Good to know

Although it's possible to get a mortgage with a 5% deposit, saving a larger deposit could give you access to a wider choice of mortgage deals and more competitive interest rates.

What our expert says...

“Having a good credit record can help your chances of getting a mortgage. If you don't have much of a record and want to buy a home then it can be worth getting advice from a mortgage broker to see if a lender is likely to accept you or not.

"If you have a proven track record of repaying credit and paying bills on time, mortgage providers might be more willing to lend to you. That’s because they might be confident you’ll pay them back. And make sure you’re registered on the electoral roll as lenders like to see proof of your address, which can also help."

Sajni Shah, Personal finance expert

How much can first-time buyers borrow?

Lenders will often offer 3 to 5 times your annual income (or combined annual income if you're buying with someone else) – though this varies a lot depending on your financial situation and credit history.

When assessing your application, lenders will usually look at:

Your income, including your salary and any additional income
Your regular spending, such as bills, loan repayments and other financial commitments
Your credit history, to understand how you've managed borrowing in the past
Your deposit, as a larger deposit may improve the range of mortgages available to you.

A lender will use this information to work out how much it believes you can comfortably afford to repay each month.

Want an estimate before you apply?

Our mortgage borrowing calculator can give you an idea of how much you could borrow and what your monthly repayments might look like. It's a useful starting point before comparing first-time buyer mortgages.

Types of mortgages for first-time buyers

The right mortgage depends on how much certainty you want over your monthly payments, how comfortable you are with interest rate changes, and your long-term plans. Here's a quick guide to the main mortgage types.

Fixed-rate mortgage

Tracker mortgage

Good if: You're comfortable with your repayments going up or down.

Your interest rate tracks the Bank of England base rate plus a set percentage (eg base rate + 4%). If the base rate falls, your repayments will go down. But if it rises, your monthly payments will increase, so you need to factor this into your calculations and work out if you could afford a rate rise before applying for a tracker.

Find out more: tracker mortgages

Discount mortgage

Standard variable rate (SVR) mortgage

Good if: You need flexibility after your initial deal ends.

You can't generally take out an SVR mortgage, it's just the rate you're moved onto when your introductory mortgage deal finishes. The SVR is generally much higher than fixed and tracker rates, and can change at any time.

It's usually best to remortgage (switch to a new deal) before being moved onto the SVR unless you think you might move house soon and want the flexibility to be able to take out a new deal if this happens.

Find out more: standard variable rate mortgages

Offset mortgage

Good if: You have savings that you don't plan to put towards your property deposit.

An offset mortgage links your savings account to your mortgage. Your savings balance is subtracted from your mortgage balance for the purposes of the interest calculation. On the plus side, you pay less interest on your mortgage – but on the downside, you don't earn interest on your savings.

Find out more: offset mortgages

Which schemes are available to help first-time buyers?

Depending on your circumstances, you may be able to get extra help buying your first home. Not every first-time buyer will qualify for every scheme. Eligibility varies depending on factors such as your income, where you're buying, your age, and the type of property.

Here are some of the main government-backed schemes available to first-time buyers:

Lifetime ISA

If you're aged 18 to 39 when you open a Lifetime ISA, you can save up to £4,000 each tax year and receive a 25% government bonus, up to £1,000 a year.

The money must be used to buy your first home (worth up to £450,000) or left until you're 60, otherwise you'll usually pay a 25% withdrawal charge.

Right to Buy and Right to Acquire

Eligible council and some housing association tenants may be able to buy the home they rent at a discount. The scheme available depends on who your landlord is and whether you meet the eligibility criteria.

First Homes scheme

Eligible first-time buyers may be able to buy selected new-build homes under the First Homes scheme for 30% to 50% less than market value.

Local councils can set additional eligibility criteria, including income limits and local connection requirements.

Shared ownership

Shared ownership allows you to buy a share of a property (typically between 25% and 75%) and pay rent on the rest. You may be able to increase your share over time through a process known as staircasing.

FAQs

What is a guarantor mortgage?

With a guarantor mortgage, a close family member or friend agrees to cover the mortgage repayments if you can’t.

A guarantor must be:

A homeowner
Prepared to put their own home at risk if your mortgage repayments aren’t paid.

Guarantor mortgages can be useful if you have little or no deposit, or you’re struggling to find a suitable lender.

What is a joint mortgage?

A joint mortgage is a mortgage you take out with someone else. This could be a:

Family member
Friend
Husband or wife
Partner.

Both people are responsible for a joint mortgage. That means you’ll both be liable for any missed repayments or making up the balance if one of you is unable to pay.

What is a loan to value (LTV) ratio?

A loan to value (LTV) ratio is the amount you can borrow on a mortgage compared to the overall cost of a property. It’s usually shown as a percentage.

For example:

You’re buying a property worth £200,000
You have a £20,000 deposit (10% of the property price)
You’re taking out a £180,000 mortgage (90% of the property price)
Your LTV is 90%

Should I buy a freehold or leasehold for my first home?

It’s up to you whether you buy a freehold or leasehold property.

Freehold means you own the property and the land it sits on. If you buy a house, it’ll usually be freehold.

With a leasehold, you:

Own the property (but not the land it’s on) for the length of the lease agreement
Typically must pay fees including ground rent and service charges.

Most flats and maisonettes are leasehold.

Read more on the pros and cons in our guide to freehold versus leasehold properties.

What other costs are there to consider when buying a first home?

Costs and fees to consider when buying your first home include:

Stamp duty – first-time buyers in England and Northern Ireland don’t pay stamp duty on the first £300,000 of properties costing up to £500,000.
Arrangement fee – this is a fee you'll sometimes pay to take out a mortgage.
Valuation fee – your mortgage provider will carry out a valuation of the property. Valuation fees vary among providers.
Survey fees – the cost of surveys varies, depending on the level of detail you want.
Broker fees – if you go through a mortgage broker, you may need to pay them a fee. But some don't charge a fee.
Legal costs – you can find out more about the legal costs of buying a home in our guide to conveyancing.

What’s the difference between repayment and interest-only mortgages?

With a repayment mortgage:

You pay back both the capital (the amount you initially borrowed) and the interest each month
By the time your mortgage ends, you’ll have paid off the total loan.

With an interest-only mortgage:

You're only paying the interest each month and none of the original capital borrowed
When the mortgage term ends, you still owe the lender the original loan. Apply for an interest-only mortgage and you’ll need to show how you intend to pay the original capital back.

Interest-only mortgages tend to have strict eligibility criteria so they’re not commonly available to first-time buyers.

Should I consider a longer-term mortgage?

The standard length (or term) of a mortgage is 25 years. But an increasing number of mortgage lenders are offering longer-term mortgages – some up to 35 or even 40 years.

First-time buyers could consider a longer-term mortgage because spreading the cost over a longer period can lower the amount you pay back each month.

When considering a longer-term mortgage, be aware that while your monthly repayments will be lower, you’ll be paying back a lot more in interest overall.

Looking for something else?

How to save for a mortgage deposit

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The cost of selling a house: a guide

Reviewed 26 Jun 2026 by Sajni Shah Personal finance expert

Sajni is passionate about finding money products to help you make great financial decisions. She keeps track of the latest trends and evolving markets to find new ways to help you save money.

Methodology

¹Based on the % of respondents claiming they have used Compare the Market in the last 12 months vs. other leading PCWs. Source: Savanta BrandVue Financial Services, National Representative Survey of 12,257 respondents (June 2026)