What is a first-time buyer mortgage?

A first-time buyer mortgage is designed to help you take that exciting first step onto the property ladder. These mortgages work similarly to standard home loans, but lenders may offer special deals, such as lower deposit requirements, cashback incentives, or discounted rates to help you get started.

If you’re unsure of the definition, you are generally considered a first-time buyer if you have never owned a residential property in the UK or anywhere else in the world, and you intend to live in the property as your main home.

The good news? You don’t need to navigate this alone. With the right deal and support from your lender, you can make your home-buying dreams a reality without unnecessary stress.

Are you eligible for a first-time buyer mortgage?

So, you’re ready to buy your first home! Before you start house-hunting, it’s important to understand what lenders look for when approving a mortgage. In addition to being over 18, here’s what you’ll typically need to qualify:

Deposit

Typically, first-time buyers normally need a deposit of at least 5-10%, though putting down more can help you access better interest rates. There are some 100% mortgages available, though they are less common.

Income and affordability

Lenders assess your income and outgoings to ensure you can comfortably afford repayments. Lenders typically allow you to borrow up to 4.5 times your annual income, though at least one leading provider of first-time buyer mortgages allows you to borrow up to 5.5 times your annual income.

Credit history

Whilst there isn’t a specific credit score required for a mortgage, having a higher score can improve your chances of being approved.

Different lenders have different criteria, so it’s worth comparing options to find the best deal for your situation.

One more thing… your home could be repossessed if you don’t keep up with repayments, so make sure you’re comfortable with what you can afford before taking the plunge.

What are my first-time buyer mortgage options?

When you're looking for a mortgage as a first-time buyer, there are a few types to consider. Here are some of the main options that you might be able to arrange:

Fixed-rate mortgages

With this option, your interest rate stays the same for a set period, usually 2 to 5 years, offering stability and predictable payments. Once your fixed term ends, you’ll usually move to the lender’s standard variable rate (SVR), so it’s worth looking for a new deal before that happens.

Tracker mortgages

These are linked to the Bank of England’s base rate. If the base rate goes up or down, your rate changes too. This could be a great option if rates are low, but keep in mind, your payments can increase if rates rise.

Offset mortgages

Do you - or your parents or someone else close to you - have savings sitting in an account? This enables you to use that money to reduce the interest you pay on your mortgage, without anyone losing access to their cash.

Guarantor mortgages

Lets a family member or someone close to you agree to cover your repayments if you can’t, potentially boosting your chances of approval or even borrowing more.

Interest-only mortgages

Only pay the interest each month, and pay nothing to reduce the actual loan itself. That means you’ll need a plan to pay off the full amount you borrowed when the mortgage term ends.

How much can I borrow with a first-time buyer mortgage?

When you're applying for your first mortgage, lenders will start by looking at your income and outgoings. Lenders usually offer around four and a half times your annual income, though some providers may offer more. They’ll assess your salary alongside any debts or regular commitments, like loans or credit cards, to check that you can comfortably afford the repayments. The lower your existing borrowing, the more you may be able to borrow.

Some lenders ask for a 10% deposit, but there are plenty of 5% deals out there too. That means you’d be borrowing up to 95% of the property’s value, also known as the loan-to-value, or LTV. A bigger deposit and lower LTV gives you a stronger position, helping you unlock better rates and lower monthly payments.

If you haven’t got any deposit saved, you could still get on the property ladder with a 100% mortgage - no deposit needed. Some lenders will use your rent payment history, for example, to work out what you can borrow. And with fixed rates to provide stability, it’s a great way to swap rent for mortgage payments without saving a big lump sum.

The best way to find out how much you can borrow is to compare quotes as you explore different mortgage options.

Are there schemes available to help first-time buyers?

If you're a first-time buyer, the government offers several schemes that could make buying your first home more affordable. Here’s a quick rundown of the options available:

  • Lifetime ISA (LISA): If you're between 18 and 40, you can save for a home with the added bonus of the government contributing 25% to your savings (up to £1,000 a year). You can keep getting this boost until you're 50, but bear in mind there are limits on the property price you can buy with this scheme.

  • Right to Buy: If you’re a council tenant, this government scheme lets you buy your home at a discount, which could help make your homeownership dreams a reality.

  • First Homes scheme: If you're over 18, the First Homes scheme offers eligible first-time buyers in England a 30-50% discount on their market value, making them much more affordable for first-time buyers.

  • Shared ownership scheme: This allows you to buy a portion of a home (typically with a council or housing association as your landlord), which helps reduce the upfront costs. Over time, you can buy more shares in the property.

These schemes can make a big difference in helping you afford your first home. It’s worth checking which ones you might be eligible for to see if they can give you the financial boost you need!

Mortgage guides

Answering your questions about first-time buyer mortgages

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Page updated on 11th September 2025, Reviewed by Richard Groom