Mortgage rates are not expected to fall further this year, but rising wages are likely to improve affordability for buyers as house prices stay flat.
First-time buyer mortgages
From saving for a deposit to getting your finances in order, arranging your mortgage in principle to securing your mortgage offer, we're here to guide you every step of the way.
We'll take you through the buying schemes available for first-time buyers to the amount of stamp duty you'll need to pay.
And we'll show you how to find the best mortgage rates and deals available for you.
Explore first-time buyer mortgages
How much can I borrow?
Get a quick idea of what you might be able to borrow for your next home.
What mortgage lenders need to know
Most lenders will let you borrow 4.5x your total household income.
The most important thing lenders look at when offering a mortgage is your monthly income.
The second most important thing is your monthly outgoings - and how much you can comfortably repay.
What deposit do I need?
Most banks like a 10% deposit for the property you’re buying, though it’s possible to buy with a 5% deposit using the Mortgage Guarantee Scheme.
A bigger deposit is likely to get you lower interest rates and lower repayment costs, saving you money in the long run.
How much could my mortgage repayments be?
Get a quick idea of how much it's going to cost each month or how a rate change could affect your monthly payments.
How to get the best first-time buyer mortgage rates
There are two ways to go about securing your first mortgage.
1: Approach banks and building societies
You can approach any lender to secure your first mortgage.
If you want to secure a mortgage as quickly as possible, going to your existing bank could be a good option.
Equally if you have strong preferences for a particular lender or mortgage, and are confident in the process, you may prefer to handle the mortgage application yourself.
You can approach as many lenders as you wish to find the best mortgage rate options for you, although it can be time-consuming to repeat the process with each lender.
2: Work with a mortgage broker
A mortgage broker will scour the whole market to find the best deals on your behalf.
They have access to deals that aren’t available on the high street as some lenders only work through brokers.
They can help to speed up the move and reduce the stress of the house buying process.
They can also help out if your credit rating isn’t where it ideally needs to be, if you have income/affordability issues, a less straightforward employment history or are buying a unique property.
Save money with Mojo Mortgages
Allow award-winning Mojo to show you the best rates available to you. A whole-of-market broker, Mojo work with over 70 lenders. And they won't charge you a penny for their services.
How it works
Fill in a few details
Tell Mojo about yourself and your situation so that they can get to know you, provide you with advice and ensure you’re eligible. It will take around 8 minutes.
Call with an expert
Book a call and speak to one of Mojo's in-house mortgage experts, who will compare thousands of deals from over 70 lenders to find one suited to you.
Get a mortgage
Leave it with Mojo; the paperwork, the application, the bank poking and protection insurance, they'll handle all the stress. And if you’re remortgaging they could save you a lot of money.
How long does a mortgage offer last?
A mortgage offer usually last for 3-6 months, although this can vary according to the lender. If you don't buy a property within this time frame, you may need to ask for a mortgage offer extension.
Mortgage timeline: how to get a mortgage as a first-time buyer
Work out how much you can borrow (1 week)
Get a mortgage in principle (1 week)
Find your home (12-24 weeks)
Lender valuation and survey (2 weeks)
Secure mortgage offer (2 weeks)
Solicitor conducts searches (6-12 weeks)
Pay deposit (usually 10% of home value)
Complete on home: solicitor handles the mortgage and the property is legally yours (1-2 weeks)
First-time buyer stamp duty calculator
When you're a first-time buyer, you don't need to pay stamp duty on the first £425,000 of a property you're buying.
If the property costs between £425,000 and £625,000, you'll pay 5% on the portion between these amounts.
And if you're buying a property that costs more than £625,000, you'll pay the normal stamp duty rates like everyone else.
What buying schemes are available for first-time buyers?
There are several schemes available to help first-time buyers into home ownership.
The mortgage guarantee scheme allows you to buy your first home with a 5% deposit.
Shared Ownership helps people on low incomes buy a stake in a home and rent the rest.
Deposit Unlock is a scheme launched by the house-building industry to enable you to buy a new-build home with just a 5% deposit.
The First Homes scheme offers 30% to 50% discounts on new-build homes to first-time buyers and key workers.
A Lifetime ISA tops up your savings by 25%, or up to £1,000-a-year, to help you save for a deposit.
The Help to Build: Equity Loan gives you a five-year interest-free loan to help you self-build a home.
A complete guide to buying a home
Buying a home is a big deal. From finding that perfect pad right through to exchanging contracts, we’re here to guide you every step of the way.
The latest news on mortgages
Are interest rates going up or down? And what does this mean for mortgages? Get the latest.
The base rate has been cut for the first time in four years and now sits at 5%. Let's take a look at what this means for mortgages and the housing market.
27% of homeowners with a mortgage are on their lender’s standard variable rate. Could you be one of them?
First-time buyers accounted for more than half of all home loans in 2023 - and more than two-thirds teamed up to secure their own homes.
The first full week back after the new year has seen buyer interest jump out of the blocks faster than last year as mortgage rates drop. Get the latest with Richard Donnell.
95% mortgage guarantee scheme extended, 40,000 new homes to be built and Local Housing Allowance unfrozen to help renters on the lowest incomes.
Marathon mortgages, cutting pensions and raiding savings: how homeowners are coping as mortgage rates hover at their highest levels for 15 years.
42% of adults aged 18-39 who don’t own a home say they’ve given up on the idea of buying one in the next ten years, including 38% of those earning £60,000+.
As lenders withdraw some of their products, we take a look at what’s triggered the current turmoil in the mortgage market and what buyers and homeowners can do.
As the cost of borrowing increases, there are steps buyers and homeowners can take to help keep mortgage payments manageable.
The Bank of England’s latest increase adds a further £60-a-month to repayments for homeowners with a £200,000 variable mortgage.
Core inflation rose to a new 31-year high in May, suggesting the Bank of England will have to increase interest rates by more than previously expected.
First-time buyer mortgages: got questions?
We know getting your first mortgage can seem pretty complicated. So we’ve listed the questions we hear all the time.
What is a first-time buyer?
A first-time buyer is someone who has never owned or sold a residential property in the UK or abroad.
Even if you once inherited a property and sold it instantly without ever living in it, you'll no longer be a first-time buyer.
Equally, if you've previously owned a share of a home with a partner or friend, and since moved back home with your parents or separated, you'll no longer qualify as a first-time buyer.
A first-time buyer and a second-time buyer can get a joint mortgage together, but because one of you has previously owned a property, you won't jointly be able to secure a first-time buyer mortgage.
What does 'loan-to-value' mean?
Loan-to-value is the amount you’re borrowing for a mortgage, expressed as a percentage of the home's value.
If you have a £20,000 deposit for a £200,000 property, your loan-to-value is 90%.
The larger your deposit (or equity), the lower your loan-to-value.
A loan-to-value of 60% or less will open up the best mortgage rates from lenders.
Find out more in Understanding loan to value
How to get mortgage-ready
Organising your finances so that your credit score is a winner and outstanding debts are paid down will put you in a good position to take out a mortgage.
Knowing what to look for in a mortgage deal - and the outlook for interest rates - will help you to decide whether to get a tracker or a fixed-rate deal.
Talking to a broker could really help, especially if your situation is more complex because you’re self-employed, older or have a poor credit rating.
Find out more in 8 things to do before applying for a mortgage
How to apply for a mortgage as a first-time buyer
Get your finances ready
Compare mortgage rates and deals
Decide the length of your mortgage term
Agree on a monthly payment you can afford
Arrange your mortgage agreement in principle
Find the home you'd like to buy
Arrange your mortgage offer
Find out more in How to apply for a mortgage when you're a first-time buyer
What is the average mortgage rate for first time buyers?
The mortgage rates available to you as a first-time buyer will vary according to the price of the property you wish to buy, the amount of deposit you've saved towards it and your current financial situation.
Lenders will look at how much you earn, alongside your regular outgoings, to decide what you can comfortably repay.
As a general guide, the best rates currently available for first-time buyers are:
5.09% - 2 year fix with a 10% deposit
4.71% - 5 year fix with a 10% deposit
5.08% - 2 year fix with a 15% deposit
4.63% - 5 year fix with a 15% deposit
Source: Moneyfacts
Which type of first-time buyer mortgage is best for me?
Only a professional mortgage expert can help you to answer this question.
They'll need to understand your income and outgoings, the amount you want to borrow, how long you want to pay it back over and what you can comfortably afford on a monthly basis.
You may want to 'fix' your mortgage, so that the payments stay the same every month for the duration of the deal, or you may want a discounted-rate mortgage, which can go up and down inline with the lender's standard variable rate.
There are lots of different types of mortgages available. Which one is best for you all depends on your personal preferences and financial circumstances.
What to ask a mortgage advisor when you're a first-time buyer
Can you compare deals across the whole of the mortgage market?
How many lenders can you access?
Are you regulated by the financial conduct authority?
What documentation will I need?
How much can I borrow and what size deposit do I need?
What's the best interest rate I can get?
What's the best type of mortgage for me?
How long should I fix my mortgage for?
Am I eligible for any home-buying schemes?
What are your fees?
What will my mortgage payments be on a monthly basis?
How long will it take to get my mortgage approved?
What type of mortgages are there?
When you’re looking to buy a new home, the choice of mortgages available can feel overwhelming.
Do you want a fixed rate where the monthly repayments stay the same or a tracker where the repayments can be lower but may fluctuate?
Let's take a look at the different types of mortgages available and where you can find the best deals.