⚡ Quick Answer
First-time buyers can get mortgages with as little as 5% deposit. The best rates require 10–25% deposit. Government schemes including the Mortgage Guarantee Scheme and shared ownership can help. Average first-time buyer property price in the UK is £224,000 (ONS 2025).
Government Schemes for First-Time Buyers
- Mortgage Guarantee Scheme: Buy with 5% deposit — the government guarantees part of the loan to lenders. Extended to 2026. GOV.UK details ↗
- Shared Ownership: Buy a share (10–75%) of a new build and pay subsidised rent on the rest. Full guide →
- First Homes Scheme: New build homes at 30–50% discount for local first-time buyers
- Help to Buy ISA replacement: The Lifetime ISA gives a 25% government bonus (max £1,000/yr) on savings for a first home
Expert Tip
Before applying for a mortgage, check your credit report for free via Experian or ClearScore. Even small errors can cost you the best rates. Give yourself 3–6 months to improve your score before applying. See our credit improvement guide →
How Much Can I Borrow?
As a first-time buyer, most lenders will offer 4–4.5x your annual gross income. Some specialist lenders go up to 5.5x for higher earners or certain professions. MoneyHelper affordability guide ↗
✅ Advantages for FTBs
- No stamp duty on first £425,000
- Access to 95% LTV mortgages
- Government schemes available
- No chain in the sale
⚠️ Things to Consider
- Saving a deposit takes time
- Additional costs: survey, solicitor, moving
- Base rate changes affect repayments
- Property values can fall
Step-by-Step: Buying Your First Home
- Check your credit score and improve it if needed
- Save your deposit (minimum 5%, ideally 10–25%)
- Get a mortgage Agreement in Principle (AIP)
- Find a property and make an offer
- Instruct a solicitor (conveyancer)
- Get a full mortgage application and survey
- Exchange contracts and complete
Frequently Asked Questions
- Get a soft-search decision in principle first — it costs nothing and reveals problems early
- Whole-of-market brokers see deals comparison sites never list, especially for non-standard income
- Benchmark total cost over the fixed period — rate plus fees, not headline rate alone
- Loan-to-value bands (95/90/85/80/75%) drive pricing — a small extra deposit can cross a cheaper band
Insider Notes
Product fees deserve as much attention as rates. A £1,499 arrangement fee on a lower rate beats a fee-free deal only on larger loans — roughly £150,000+ for typical gaps. Run both totals over the fixed period before deciding.
The single biggest lever on price is loan-to-value. Lenders price in bands — 95%, 90%, 85%, 80%, 75% — and crossing a band boundary can cut your rate by 0.3–0.6 percentage points. Before applying, check whether a small top-up to your deposit crosses a threshold: on a £250,000 loan that's thousands over a fix.
New-build purchases carry extra moving parts: developer deadlines (typically a 28-day exchange requirement), incentives that lenders may deduct from the valuation, and longer mortgage-offer validity requirements. Use a broker experienced with new-build timescales.
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