Your mortgage is likely to be your biggest financial commitment, so shopping around for the best deal is vital. We can help by comparing thousands of products from a wide variety of lenders – so you can be confident you’re getting the right deal.
Take a look at our best first time buyer mortgages rates, split by intiial term length and deposit size.
Updates daily
You're classed as a first-time buyer if:
You’ve never owned a residential property either in the UK or abroad
You're not classed as a first-time buyer if:
You’re buying a property with someone who owns, or has previously owned, a home
You’ve inherited a home - even if it was sold and you didn't live in it
Someone is buying the property who already owns their own home, like a parent or guardian.
Check out even more stats on our dedicated first-time buyer statistics page.
mortgage terms
deposit on their first property
Before you start making applications, use our comparison service to adjust property value, deposit amounts, and mortgage terms and compare rates from over 70 UK lenders.
Be sure to compare different fixed mortgage terms and consider product fees to tailor your mortgage repayments to your personal circumstances.
Putting down a larger deposit means you're borrowing less from a mortgage lender. Mortgage rates can come down dramatically at loan-to-value ratio 'steps', and borrowing less overall means you pay less in interest.
For example, if you were buying a property worth £290,000, here's how putting down a larger deposit would impact your monthly repayments. This assumes a 30 year term, 5 year fix, and you're a first-time buyer.
Deposit (% of property value) | Initial mortgage rate | Monthly repayments |
|---|---|---|
5% | 4.99% | £1,477 |
10% | 4.5% | £1,322 |
15% | 4.26% | £1,214 |
20% | 4.26% | £1,143 |
Depending on your situation and the property you're buying, you can always put down a smaller deposit and overpay. This is useful if you need a savings buffer when moving in to handle unexpected maintenance costs and unplanned expenses.
While there isn't an ideal score you need for a successful mortgage application, a higher score makes you a lower risk.
But beyond your creditworthiness, checking your credit file can help you identify and fix things that might slow down your mortgage application, such as:
Finding and closing old credit card or mobile phone accounts, which can cause issues with ID verification if they're under a different address
Removing unwanted financial associations, such as ex-partners, who will be factored into a lending decision even if you're no longer together
Incorrect personal information, payment histories, and other inconsistencies that paint an inaccurate picture of your finances
When lenders assess your mortgage eligibility, they also look at any outstanding credit agreements to assess your affordability too.
All things equal, an individual with outstanding credit card balances and car financing agreements are a higher risk than those with lower debt-to-income ratios.
Before applying for mortgage:
Avoid taking on more debt that may impact your overall affordability
If you're paying interest on outstanding credit card balances, move it to a balance transfer credit card to pay your debt off faster
Attractive rates are one thing, but check the terms and conditions for:
How much you can overpay without incurring a penalty
If you can 'port' the mortgage to a new home and keep your current deal
If you can pay the arrangement or product fees upfront, as adding them to your mortgage means you'll pay interest on the 'extra' borrowing
Your level of deposit – expressed as a percentage of your property value – is important. It represents the level of risk to the bank or building society lending you the money. For example, if your first home purchase has a value of £250,000 and you’ve saved £25,000 to pay towards it in cash – that’s a 10% cash deposit.
This means you’ll need to borrow £225,000 from the bank for a mortgage, so the loan to value – or LTV – of the mortgage is 90%.
In contrast, if you’ve saved £50,000 that’s a 20% deposit – so the mortgage (at 80% LTV) you need is less, representing less risk to the lender. A bigger deposit will usually also give you access to more competitive mortgage rates. While you can get a mortgage with a 5% deposit, saving up more can be beneficial.
Deposit Size | Deposit Value |
|---|---|
5% | £11,250 |
10% | £22,500 |
15% | £33,750 |
These figures are based on the deposit size needed for a property worth £225,000.
If you’re aged 18–39 and are saving up for a deposit to buy your first home, you can save into a Lifetime ISA where cash is topped up with a 25% bonus by the government.
You can pay up to a maximum of £4,000 a year into the account and claim an annual government bonus of up to £1,000. You can use this money to buy a property costing up to £450,000.
The First Homes Scheme offers a 30% to 50% discount on the market value of a new-build home, or one originally bought with the First Homes Scheme.
To be eligible you must:
be 18 or older
be a first-time buyer
be able to get a mortgage for at least half the price of the home
not earn more than £80,000 a year before tax (£90,000 if the property is in London) - this is your income from the previous tax year
If you’re buying with others:
you must all be first-time buyers
you must apply together, even if you’re not all getting a mortgage
your joint income cannot be more than £80,000 a year before tax (£90,000 if the property is in London)
Local exemptions apply, so check gov.uk for the latest guidance.
The UK government Mortgage Guarantee Scheme supports 91 - 95% LTV mortgages. This means you could buy a home with a 5% deposit, as the government guarantees part of the lender’s risk.
The scheme is available to first time buyers and people moving home in the UK. It covers main residences, not buy-to-lets or second homes, up to £600,000. The scheme is still subject to affordability, income, and credit history checks.
Shared ownership, also known as 'part buy, part rent', is a type of mortgage that gives first-time buyers the chance to purchase a share in a new build property.
You can take out a mortgage for the share you own (between 10% and 75%) while paying rent on the rest to a housing association.
As you’ll only be paying a mortgage on the share you’re buying, the amount needed for a deposit is usually much less than if you were to buy a property outright.
To be eligible for Rent to Buy, you must be:
in full or part time employment
a first-time buyer
able to pay your rent and save for a deposit at the same time
The scheme is available in England, apart from London. Properties in London are covered by a separate scheme called London Living Rent.
When it comes to choosing the best mortgage as a first-time buyer it depends on your individual situation and preferences.
Fixed-rate mortgages offer the certainty that you know what you’ll repay every month for a set period and you’re protected from interest rate fluctuations.
In contrast, tracker mortgages and discounted variable rate mortgages offer potential savings if interest rates drop, but become more expensive if rates rise.
Before deciding, it’s important to consider your financial circumstances, long-term plans, and seek advice to determine the most suitable mortgage type, considering factors such as affordability, repayment options, and potential interest rate changes.
In the last 12 months, 21.5% of first-time buyers enquiring about mortgages on MoneySuperMarket have benefitted from the extended ‘nil-rate’ stamp duty threshold introduced in September 2022.
As the Chancellor of the Exchequer, Rachel Reeves, has not extended this exemption in today’s Budget, more first-time buyers will have to find an average of £4,678 to afford stamp duty from March 31st 2025.
This is on top of saving for a deposit, which the latest MoneySuperMarket Household Money Index reveals takes the average earner, saving every penny of their disposable income, six years to save.
If you’re also going to have to pay stamp duty, it’s more important than ever to make sure your savings are earning the best possible interest rate. Our guide for first-time buyers and mortgage comparison tool can help you work out how much you’ll need to save to get on the property ladder.
Kara Gammell Personal Finance & Insurance Expert
Getting a Decision in Principle (also called an 'Agreement in Principle') is a useful homebuying tool.
It reassures buyers you have the means to buy a property, and estate agents will often ask for it up front
You'll know what lenders are prepared to let you borrow
It's a soft search, meaning it doesn't show up on your credit file
How much you’ll pay in monthly mortgage repayments will depend on the size of the loans and what type of mortgage you get. The different types of mortgages include:
A fixed-rate mortgage will keep your monthly mortgage repayments at a set rate for two, three, or five years – although in some cases, you can fix it for as long as 10 years. Once the deal has ended, it’s usually best to switch mortgages to avoid paying your lender’s standard variable rate (SVR), which is likely to be much higher than your fixed rate deal.
A tracker mortgage tracks the Bank of England base rate, meaning the amount of interest you pay each month could go up or down if the base rate does. Also look out for capped tracker mortgages, where you won’t pay more than a given percentage no matter how much the base rate rises.
A discounted variable-rate mortgage usually lasts for between two and five years and is fixed at a set percentage below your lender’s SVR. However, your mortgage rate will change if the SVR changes. So it's important to bear that in mind when you're doing your sums.
With an offset mortgage, you can use a linked savings account to offset the amount you owe on your mortgage. So instead of earning interest on your savings, you pay less interest on your mortgage. This is because your savings balance offsets your mortgage debt – and you only pay interest on the debt balance.
A guarantor mortgage involves a third party, typically a family member, guaranteeing the repayments if you fail to meet them. This provides additional security for the lender, allowing borrowers with limited income or deposit to access mortgage financing.
An interest-only mortgage is a type of loan where you only need to repay the interest charges each month, without reducing the original amount borrowed. This means your monthly payments are lower, but it's essential to have a plan in place to repay the capital at the end of the mortgage term.
A strong credit rating is the key to securing a mortgage offer with attractive terms. A good credit score shows lenders you’re less of a risk. Find out your credit score with our Credit Score tool. We’ll also send you tips and tricks on how to improve your credit score
MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Our mortgage affordability calculator shows you how much you could borrow based on your income
Work out the cost of your mortgage and the predicted cost of your monthly repayments
See how much your mortgage payments will be affected by a Bank of England base rate change
See how much stamp duty you will need to pay on completion of your house purchase
Keen to find how much you could save by overpaying on your mortgage?
We'll ask a few quick questions to find out the value of the property you want to buy and the size of your deposit
We’ll show you a list of mortgage rates from different providers that match your needs. You can filter by type or cost of monthly repayments
Once you’ve decided which deal suits you, click through and our broker partners will help you with the next steps
When you apply for a mortgage, the lender will assess your affordability by looking at your annual salary and any other income you receive, as well as your outgoings, including credit card and loan debts, household bills, childcare, and general living costs.
The lender will also check your credit history to see whether you’re a reliable borrower and will then use this and its affordability assessment to decide how much you can borrow.
The size of your cash deposit towards the home purchase will also have an impact. Mortgage providers usually have a maximum loan-to-value (LTV), or percentage of the property value, they’re prepared to offer.
If, for example, you want to buy a £200,000 property on an 85% LTV mortgage, you’ll need a 15% deposit, which comes to £30,000.
Yes, you can. But, of course, you’ll need to prove your income in order to take out a mortgage.
It's likely you’ll have to provide at least two years of tax statements or company accounts that have been undersigned by an accountant. If these documents show consistent or increasing profit, you’ll be one step close to securing your first-time buyer mortgage.
When you’re ready to start viewing properties, it’s a good idea to get a mortgage agreement in principle from one or more lenders.
This will give you a good idea of how much you can borrow. Estate agents may also want to see this to ensure you’re serious about buying.
Before going ahead with an agreement in principle application, check whether the lender will carry out a credit check. This will usually appear on your credit file.
An agreement in principle is generally valid for between 30 and 90 days and is an estimate rather than a guaranteed mortgage offer.
When you buy a property, you might also need to pay various fees and charges upfront.
It's usually a good idea to instruct a conveyancer or solicitor to help with your purchase, and they'll inform you of the charges you need to pay.
In some cases, some of the legal fees are included as part of your mortgage but not always. Extra costs are likely to include:
Property searches
Stamp duty
You may also need to buy essential items, such as appliances and furniture, and cover the cost of a removal service – or at least a rental van.
Joint mortgages
If you’re struggling to borrow enough to get onto the property ladder, one way to raise a larger deposit and get a bigger mortgage is to buy a home with your partner or with one or more friends or family members.
You can take out a joint mortgage as joint tenants, which means all parties own an equal share of the property, or as tenants in common, with which the split can be calculated based on how much each person puts in.
Either way, it’s a good idea to seek independent legal advice before taking out a joint mortgage to make sure you all agree on what happens to the property should one of you want to sell or leave.
Shared ownership
If you’re a first-time buyer earning less than £80,000 a year (or £90,000 in London), you could be eligible for a shared ownership mortgage.
With this type of home loan, you buy a percentage of a property – say 25% and pay rent on the rest.
This can be a good option if you only have a small deposit, as you only have to find say 10% of the value of the share you buy.
You can often increase the share of the property you own when it becomes affordable, while stamp duty can usually be deferred until you own 80%.
Guarantor mortgages
A guarantor mortgage is another way to take out a larger mortgage for your first home. With a mortgage of this kind, the guarantor – most likely a parent or close family member – promises to cover the mortgage repayments if you cannot.
Although the guarantor’s name won’t go on the property deeds, it’s still a good idea to seek independent legal advice before asking someone to guarantee your mortgage – just to make sure everyone understands the rules.
100% mortgages
Mortgages that allow you to borrow the full value of the property are rare and come with strict eligibility criteria, such as proving the average rent you’ve been paying for six months or more exceeds the potential mortgage repayments.
There is also an increased risk of negative equity, which means that if the price of the property were to fall, you may owe more to the lender than the property is worth. This can prove problematic if you want to move.
The loan-to-value (LTV) ratio is a financial term that represents the proportion of a property's value that is financed through a mortgage loan.
It is calculated by dividing the loan amount by the property's value or purchase price and is expressed as a percentage.
For example, if you purchased a property for £200,000 and borrowed £140,000 through a mortgage the LTV would be 60% (£140k divided by £200k).
Higher LTVs can often allow you access to lower mortgage interest rates, so building equity in your property (such as through overpayments) can make things cheaper down the road.
This comes down to personal preference. Hiring a solicitor or conveyancer early in the homebuying process ensures that you have professional legal representation throughout the transaction. They can guide you through the legal aspects, review contracts, conduct searches, and provide advice on various matters.
Alternatively, if you use a broker to help secure a mortgage they might be able to help connect you to a conveyancer who can support you with the legal work when necessary. Whichever route you choose, it’s wise to compare costs, levels of service and customer reviews before making a final decision.
Reviewed on 8 Dec 2025
YouGov Survey 1st July 2024 to 30th June 2025. Net Recommend score derived from “Which of the following online service websites would you recommend to a friend or colleague, or tell them to avoid?” Base: Current Customers of (MoneySuperMarket n=18,382, Compare the Market n=16,802, Go.Compare n=10,162, Confused.com n=8,229, Uswitch n=528).
