Compare first-time buyer mortgages

The First Homes scheme allows first-time buyers in England to purchase properties for 30 to 50% less than market value.

The home must be:

• A new build home, or

• A resale home that was originally bought as part of the First Homes scheme

To be eligible, in addition to being a first-time buyer, you must be:

• 18 or older

• Able to get a mortgage for at least half the price of the home

• Buying as part of a household where the annual income does not exceed £80,000, or £90,000 in London

Another government scheme is shared ownership.

This initiative lets you buy between 10% and 75% of a home as a share from a housing association or other organisation and pay rent on the rest.

Shared ownership lets you buy a house with a smaller mortgage and a smaller deposit.

You have the option to buy more of the property later once you can afford it. This process is known as “staircasing”.

Normally people can "staircase" until the point that they own 100% of the property.

You need to find a lender who offers shared ownership mortgages if you want to use this scheme.

If you're between 18 and 40, you can open a Lifetime ISA (LISA). Under the rules, you can pay £4,000 a year into your LISA until you're 50. The government adds a 25% bonus to the money you save, up to £1,000 annually.

If you withdraw the money for reasons other than your first home or retirement, you’ll pay a withdrawal charge of 25%, which means you’ll lose the government bonus plus some on top.

You can use the money from a LISA to buy your first home if you're buying with a mortgage and:

• The property costs £450,000 or less

• You have a LISA for at least a year before you buy a property

• You use a conveyancer or solicitor to act for you in the purchase

If you're buying a property in the UK, you may have to pay some form of Stamp Duty. How much you'll need to pay depends on the property's value.

However, if you're a first-time buyer, you'll usually get a discount. In England and Northern Ireland, first-time buyers don't pay any Stamp Duty up to £425,000 (compared to £250,000 for others). For properties up to £625,000 you'll pay no Stamp Duty on the first £425,000 and then you'll pay 5% on the remaining amount. If the property you're purchasing is over £625,000, you won't benefit from the relief at all.
This Stamp Duty in England only applies up until March 31, 2025. After that date, the threshold lowers to £300,000 and you'll need to pay a 5% Stamp Duty on the portion of the property between £300,001 to £500,000.

In Scotland, Stamp Duty is known as Land and Building Transaction Tax (LBTT). First-time buyers benefit from LBTT relief up to £175,000, saving them up to £600.

In Wales, first-time buyers don't get any additional Land Transaction Tax (LTT) relief. However, no LTT is charged on properties less than £225,000.

In April 2021, the mortgage guarantee scheme was introduced to bring back 95% mortgages to the market.

During the Covid-19 pandemic many lenders withdrew their products that were available to those with 5% deposits. Through the government guarantee scheme, the government agreed to guarantee part of the loan for certain high loan-to-value (LTV) mortgages, taking some of the risk away from lenders.

The scheme did increase the number of 95% mortgages on the market. However, it is coming to an end in June 2025.

If you are able to save up a bigger 10 or 15% deposit, you will usually get access to better rates and deals.

The Help to Buy scheme is no longer available to new applicants in England, but continues to be open to applicants in Wales until the end of September 2026.

This government scheme can help you to get a mortgage with a 5% deposit, but is only available for new-build properties.

The scheme provides an equity loan to top up your deposit, which means you borrow money less money from the mortgage lender.

You must repay the loan when you sell your home, and if the price of your home has risen, some of that increase will also be repayable on the equity loan.

According to Mojo Mortgages, the average age of a first-time buyer is 33 years, eight months. Although it can vary depending on which part of the UK you're in.

For example, it's slightly higher in London at 36 years, eight months.

There are other costs to consider when doing your first-time buyer mortgage, other than a deposit, including:

• Stamp duty - First-time buyers will have to pay Stamp Duty depending on the property purchase price. To find out more about how much property tax you'll need to pay, use our Stamp Duty calculator.

• Arrangement fee - This is the administration charge made by lenders for arranging to take out a mortgage. Fees vary, and you can choose to either pay this up-front or add it onto your mortgage. However, if you choose the latter expect to pay more in interest.

• Survey fees - The money paid to a surveyor to perform an inspection on the property's structure to determine its condition and value. The fee varies depending on the level of detail you want and the size of the property.

• Legal fees - The sum paid for legal services, including conveyancing and land searches.

• Home insurance - As part of their contract, some lenders only offer mortgages if you have buildings insurance.

It is very unlikely that you will be offered an interest-only mortgage as a first-time buyer.

Most mortgages are capital repayment mortgages, where you pay off the interest and the capital (the amount you borrowed) with each monthly payment.

You can use our mortgage affordability calculator to work out how much you could borrow. From there, look at properties in the area where you want to buy and work out how much you need to save as a deposit. 

Mortgage repayment calculators can give you an idea of what your monthly payments will be. Compare these estimated payments with your current monthly outgoings to see if you can afford them. 

Yes, your credit record matters for any mortgage application. Lenders want to see proof that you can keep up repayments.

If your credit score is low, you may find fewer lenders willing to give you a loan. However, speaking to a mortgage broker can help you find the providers that are more likely to.

It is possible to get a first-time buyer mortgage with a 95% LTV.

5% deposit mortgages were largely withdrawn from the market near the start of the coronavirus pandemic but the mortgage guarantee scheme, which was introduced in April 2021, helped bring them back.

The best mortgage for you will be affordable and suit your circumstances. To find the cheapest deal, you should look at the total cost over the initial offer, which will take the interest rate and fees into account.

It's often a good idea to speak to a mortgage adviser who can help you find the most suitable deal for you.

Most mortgages need at least a 5% deposit. For better interest rates, you will need to save more – the lower your LTV, the cheaper your mortgage is likely to be.

Some 100% mortgages are available to help you get onto the property ladder without a deposit, but these usually require having a friend or family member act as a guarantor.

Yes, and getting a joint mortgage means you could borrow more and make the repayments easier to afford. 

Yes, if you're self-employed you can get a mortgage but you'll need to prove to the lender that you have at least two years of reliable income. If you can provide this, your mortgage rates should be no different than those in full-time roles.