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First-time buyer mortgages in the UK

What lenders actually look at, how much deposit changes the price, which schemes still exist, and the costs that sit around the mortgage itself.

Last reviewed: October 2026

Key takeaways
  • ✔ 5% deposit is enough for some lenders — 10–15% is where the rate usually jumps in your favour
  • ✔ Help to Buy equity loans in England are closed; Shared Ownership and 95% LTV deals are not
  • ✔ Most lenders cap borrowing at 4–4.5× household income, after existing commitments
  • ✔ The lender valuation protects the lender. Budget for your own survey
  • ✔ Check every fee — product, valuation, legal and any broker fee — before you apply

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

What “first-time buyer” means to a lender

A first-time buyer is someone who has not previously owned a property, in the UK or elsewhere, whether alone or jointly. Both applicants on a joint application usually need to qualify. Owning a share through Shared Ownership still counts as owning.

That status unlocks a handful of products the rest of the market cannot use — some 95% LTV deals, Shared Ownership leases, and lender-specific first-time buyer rates. It does not relax affordability. The lender still has to believe the payment is sustainable after the introductory rate ends.

Deposit bands

Every extra percent of deposit does two jobs: it cuts the loan-to-value, and it widens the lender pool. The jump from 5% to 10% is usually worth more than any other single change you can make.

DepositLTVWhat you get
5%95%Fewest lenders, highest rates. Viable, not cheap.
10%90%Noticeably more lenders and a step down in rate.
15%85%Most high-street lenders compete.
25%+75% or lessThe keenest pricing for a given term.

Schemes that still exist — and one that does not

Help to Buy as an equity loan in England is closed to new applicants. Sites that still lead with it are out of date. What first-time buyers actually use in 2026:

  • Shared Ownership — buy a share (typically 25–75%) and pay rent on the rest. The mortgage is only on the share, which is why the cash deposit can look small against the full price.
  • Lifetime ISA — a deposit-saving wrapper with a government bonus, not a mortgage product. Useful if you already have one; rarely worth opening to buy in the next few months.
  • 95% LTV mortgages — mainstream lender products, not a government scheme. They exist in most rate cycles, at a premium to 90% deals.

Scotland and Wales run their own schemes. If the property is outside England, the product list changes — say so at the start.

The process, in order

1
Check your eligibility
Many lenders and brokers offer an initial eligibility check on the property, the deposit and your income that does not leave a hard search on your credit file. No commitment.
2
Agreement in principle
A lender indicates they can help, subject to full underwriting. Useful when making an offer; not a guarantee.
3
Full application
Income evidence, bank statements, the hard search, and a valuation instructed by the lender.
4
Offer
A formal mortgage offer, usually valid for three to six months. Conveyancing runs in parallel.
5
Exchange and completion
You become legally committed at exchange. Funds are drawn and keys follow on completion day.

Frequently asked questions

How much deposit does a first-time buyer need?
5% is enough for a 95% LTV mortgage with a number of high-street lenders. 10% or 15% opens up a much wider, cheaper choice of lenders. Gifted deposits from family are accepted by many lenders if documented as a genuine gift with no repayment expected.
Is Help to Buy still available?
The Help to Buy equity-loan scheme in England has closed to new applications. What remains is Shared Ownership, the Lifetime ISA for deposit saving, and 95% LTV mortgages. Scotland and Wales run their own schemes with different rules.
How much can a first-time buyer borrow?
Most lenders work to 4–4.5 times household income, tested against monthly outgoings as well as salary. A few specialists go higher for higher earners with low existing commitments.
Can first-time buyers get a mortgage with bad credit?
Sometimes, but 95% LTV and recent adverse credit rarely sit on the same product. A larger deposit — 10–15% or more — and settled, older issues give specialists something to work with.
How long does a first-time buyer mortgage take?
From application to offer is typically two to four weeks on a straightforward case. Offer to completion, including conveyancing, is usually eight to twelve weeks. New-build and Shared Ownership often take longer.
Should I get a 2-year or 5-year fix?
A two-year fix is cheaper initially and leaves you free to remortgage sooner. A five-year fix costs more on day one and protects you if rates rise. First-time buyers stretching to the maximum they can afford usually prefer the longer certainty.

Related guides

Guide
How much can I borrow on a mortgage?

Income multiples, stress tests and worked examples.

Guide
What is a remortgage?

What happens when the first deal ends — and what to do six months before.

Want to know more before you buy?

Our overview explains first-time buyer mortgages in plain English. A regulated mortgage broker can help you compare the whole market.

First-time buyer mortgages overview →
Important: Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. This guide is for information only and is not financial advice. CleverCompare is an independent comparison and guides site — we don't lend, broker mortgages or give advice. A regulated mortgage broker can help you compare the market, and free, impartial guidance is available from MoneyHelper (moneyhelper.org.uk).