Compare First Time Buyer Mortgages Rates December 2021

Choose a mortgage that could be available to you as a first time buyer, and help you get on the property ladder.

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1822 results found, based on a property cost of £200,000 with a deposit of £80,000 for 25 years. Sorted by lowest initial monthly payment. Find out more about how our calculator works and how we order our comparisons.. Commission earned affects the table's sort order.
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years
Progressive Building Society 2 year discount for properties in Northern Ireland
Initial rate
0.51% for 2 years (3.84% discount on SVR)
Subsequent rate (SVR)
4.35% variable
Overall cost for comparison
3.7% APRC
Monthly cost
£426.13 for 24 monthsthen £636.76 a month
Available in branch only.
The total cost of a £120,000 mortgage over 25 years is £185,972.88.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first year

- 1.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in Northern Ireland
First Time Buyers
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Progressive Building Society 2 year discount for properties in Northern Ireland
Initial rate
0.79% for 2 years (3.56% discount on SVR)
Subsequent rate (SVR)
4.35% variable
Overall cost for comparison
3.8% APRC
Monthly cost
£440.93 for 24 monthsthen £638.45 a month
Available in branch only.
The total cost of a £120,000 mortgage over 25 years is £186,794.52.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first year

- 1.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in Northern Ireland
First Time Buyers
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Yorkshire Building Society 2 year BBR tracker
Initial rate
0.84% base rate tracker until 29 Feb 2024
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.8% APRC
Monthly cost
£443.61 for 63 monthsthen £601.25 a month
The initial rate will be followed by a rate of 3.75% until 28 Feb 2027 (0.74% discount on SVR).
The total cost of a £120,000 mortgage over 25 years is £186,667.60, including £995 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion fee£995 with an option to add to the loan
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 1.00% of amount paid, before 29 Feb 2024

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Barclays 2 year BBR tracker
Initial rate
0.85% base rate tracker for 2 years
Subsequent rate (SVR)
3.59% base rate tracker
Overall cost for comparison
3.2% APRC
Monthly cost
£444.15 for 24 monthsthen £593.02 a month
The total cost of a £120,000 mortgage over 25 years is £175,332.12, including £999 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end70 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Stafford Railway 2 year discount
Initial rate
0.85% for 2 years (2.1% discount on SVR)
Subsequent rate (SVR)
2.95% variable
Overall cost for comparison
2.7% APRC
Monthly cost
£444.15 for 24 monthsthen £555.95 a month
The total cost of a £120,000 mortgage over 25 years is £165,101.80, including £1000 of fees.
More information
Application feeNo fee
Arrangement fee£1,000 with an option to add to the loan
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 3.00% of amount paid, in the first two years

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Wales
First Time Buyers
Max age at term end85 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Acceptedfalse
Nationwide 2 year BBR tracker cashback mortgage for first time buyers
Initial rate
0.89% base rate tracker for 2 years
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.3% APRC
Monthly cost
£446.30 for 24 monthsthen £593.25 a month
The total cost of a £120,000 mortgage over 25 years is £175,947.20, including £1499 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£1,499 with an option to add to the loan
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers Only
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Progressive Building Society 2 year fixed for properties in Northern Ireland
Initial rate
0.89% fixed for 2 years
Subsequent rate (SVR)
4.35% variable
Overall cost for comparison
3.9% APRC
Monthly cost
£446.30 for 24 monthsthen £639.05 a month
Available in branch only.
The total cost of a £120,000 mortgage over 25 years is £188,084.00, including £995 of fees.
More information
Application feeNo fee
Arrangement fee£995 with an option to add to the loan
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 3.00% of amount paid, in the first two years

Other fees may apply.

Eligibility
Available Direct
Available in Northern Ireland
First Time Buyers
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Nationwide 2 year BBR tracker cashback mortgage for first time buyers
Initial rate
0.94% base rate tracker for 2 years
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.3% APRC
Monthly cost
£449.00 for 24 monthsthen £593.52 a month
The total cost of a £120,000 mortgage over 25 years is £175,586.52, including £999 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers Only
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Barclays 2 year BBR tracker
Initial rate
0.95% base rate tracker for 2 years
Subsequent rate (SVR)
3.59% base rate tracker
Overall cost for comparison
3.3% APRC
Monthly cost
£449.54 for 24 monthsthen £593.58 a month
The total cost of a £120,000 mortgage over 25 years is £175,616.04, including £999 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end70 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Furness Building Society 2 year discount
Initial rate
0.99% for 2 years (4.15% discount on SVR)
Subsequent rate (SVR)
5.14% variable
Overall cost for comparison
4.6% APRC
Monthly cost
£451.70 for 24 monthsthen £689.26 a month
The total cost of a £120,000 mortgage over 25 years is £202,575.56, including £1499 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£1,499 with an option to add to the loan
Additional information

Early repayment charge

If you pay all of your mortgage early you will be charged:

- 3.00% of amount paid, in the first year

- 2.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Nationwide 2 year BBR tracker cashback mortgage for first time buyers
Initial rate
0.99% base rate tracker for 2 years
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.3% APRC
Monthly cost
£451.70 for 24 monthsthen £593.79 a month
The total cost of a £120,000 mortgage over 25 years is £176,225.84, including £1499 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£1,499 with an option to add to the loan
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers Only
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Nationwide 2 year BBR tracker cashback mortgage for first time buyers
Initial rate
0.99% base rate tracker for 2 years
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.3% APRC
Monthly cost
£451.70 for 24 monthsthen £593.79 a month
The total cost of a £120,000 mortgage over 25 years is £176,225.84, including £1499 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£1,499 with an option to add to the loan
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers Only
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Progressive Building Society 2 year fixed for properties in Northern Ireland
Initial rate
0.99% fixed for 2 years
Subsequent rate (SVR)
4.35% variable
Overall cost for comparison
3.9% APRC
Monthly cost
£451.70 for 24 monthsthen £639.64 a month
Available in branch only.
The total cost of a £120,000 mortgage over 25 years is £188,376.44, including £995 of fees.
More information
Application feeNo fee
Arrangement fee£995 with an option to add to the loan
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 3.00% of amount paid, in the first two years

Other fees may apply.

Eligibility
Available Direct
Available in Northern Ireland
First Time Buyers
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Nationwide 2 year BBR tracker cashback mortgage for first time buyers
Initial rate
1.04% base rate tracker for 2 years
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.3% APRC
Monthly cost
£454.42 for 24 monthsthen £594.07 a month
The total cost of a £120,000 mortgage over 25 years is £175,868.40, including £999 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers Only
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Nationwide 2 year BBR tracker cashback mortgage for first time buyers
Initial rate
1.04% base rate tracker for 2 years
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.3% APRC
Monthly cost
£454.42 for 24 monthsthen £594.07 a month
The total cost of a £120,000 mortgage over 25 years is £176,368.40, including £1499 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£1,499 with an option to add to the loan
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers Only
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Nationwide 2 year BBR tracker cashback mortgage for first time buyers
Initial rate
1.04% base rate tracker for 2 years
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.3% APRC
Monthly cost
£454.42 for 24 monthsthen £594.07 a month
The total cost of a £120,000 mortgage over 25 years is £175,868.40, including £999 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers Only
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
The Cumberland 2 year discount
Initial rate
1.04% for 2 years (3.05% discount on SVR)
Subsequent rate (SVR)
4.09% variable
Overall cost for comparison
3.8% APRC
Monthly cost
£454.42 for 24 monthsthen £624.03 a month
Available in branch only.
The total cost of a £120,000 mortgage over 25 years is £185,137.36, including £1999 of fees.
More information
Application feeNo fee
Arrangement fee£1,999 with an option to add to the loan
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 1.00% of amount paid, in the first year

- 0.50% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
First Time Buyers
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Barclays 2 year BBR tracker
Initial rate
1.06% base rate tracker for 2 years
Subsequent rate (SVR)
3.59% base rate tracker
Overall cost for comparison
3.2% APRC
Monthly cost
£455.51 for 24 monthsthen £594.18 a month
The total cost of a £120,000 mortgage over 25 years is £174,925.92.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 1.00% of amount paid, in the first two years

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end70 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Barclays 2 year BBR tracker
Initial rate
1.08% base rate tracker for 2 years
Subsequent rate (SVR)
3.59% base rate tracker
Overall cost for comparison
3.4% APRC
Monthly cost
£456.61 for 24 monthsthen £594.28 a month
The total cost of a £120,000 mortgage over 25 years is £176,978.92, including £1999 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£1,999 with an option to add to the loan
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end70 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Barclays 2 year BBR tracker
Initial rate
1.09% base rate tracker for 2 years
Subsequent rate (SVR)
3.59% base rate tracker
Overall cost for comparison
3.2% APRC
Monthly cost
£457.15 for 24 monthsthen £594.34 a month
The total cost of a £120,000 mortgage over 25 years is £175,009.44.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 1.00% of amount paid, in the first two years

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end70 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Furness Building Society 2 year discount
Initial rate
1.09% for 2 years (4.05% discount on SVR)
Subsequent rate (SVR)
5.14% variable
Overall cost for comparison
4.6% APRC
Monthly cost
£457.15 for 24 monthsthen £689.89 a month
The total cost of a £120,000 mortgage over 25 years is £202,380.24, including £999 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all of your mortgage early you will be charged:

- 3.00% of amount paid, in the first year

- 2.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Furness Building Society 2 year discount
Initial rate
1.09% for 2 years (4.05% discount on SVR)
Subsequent rate (SVR)
5.14% variable
Overall cost for comparison
4.6% APRC
Monthly cost
£457.15 for 24 monthsthen £689.89 a month
The total cost of a £120,000 mortgage over 25 years is £202,880.24, including £1499 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£1,499 with an option to add to the loan
Additional information

Early repayment charge

If you pay all of your mortgage early you will be charged:

- 3.00% of amount paid, in the first year

- 2.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Nationwide 2 year BBR tracker cashback mortgage for first time buyers
Initial rate
1.09% base rate tracker for 2 years
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.3% APRC
Monthly cost
£457.15 for 24 monthsthen £594.34 a month
The total cost of a £120,000 mortgage over 25 years is £176,008.44, including £999 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers Only
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Progressive Building Society 2 year discount for properties in Northern Ireland
Initial rate
1.09% for 2 years (3.26% discount on SVR)
Subsequent rate (SVR)
4.35% variable
Overall cost for comparison
3.8% APRC
Monthly cost
£457.15 for 24 monthsthen £640.23 a month
Available in branch only.
The total cost of a £120,000 mortgage over 25 years is £187,675.08.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first year

- 1.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in Northern Ireland
First Time Buyers
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Barclays 2 year fixed
Initial rate
1.11% fixed until 29 Feb 2024
Subsequent rate (SVR)
3.59% base rate tracker
Overall cost for comparison
3.2% APRC
Monthly cost
£458.25 for 27 monthsthen £593.44 a month
The total cost of a £120,000 mortgage over 25 years is £175,516.06, including £999 of fees.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, before 29 Feb 2024

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end70 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

The results shown are for illustrative purposes, as you may not be eligible for every deal shown.

Lenders consider your credit record and financial circumstances when they decide if they can offer you a mortgage.

Overall representative example

Based on borrowing£170,000 over 25 yearsThe overall cost of comparison3.68% APRC representative
Initial rate2.17% fixed for 2 years (24 instalments of £723.54pm)Subsequent rate (SVR)3.90% variable for the remaining 23 years (276 instalments of £877.63pm)
Lender fee£544Total amount payable£260,133.79

Can I get a first time buyer mortgage?

If you’ve never owned a home then you'll be considered a first time buyer and you can apply for a first time mortgage. 

It doesn’t matter whether you are single or buying as a couple, if neither partner has ever previously bought a home then you are both first time buyers.

If you've inherited property before, then unfortunately, you won’t be able to apply for a first time buyer mortgage. Although you'd be buying for the first time, the rules state that you must never have owned a home before, which is different from never having bought one before.

However, there is good news for commercial property owners. If you've owned a shop, or restaurant, but never owned your own home, you'd still be considered a first time buyer.

How much can I borrow on a first time buyers mortgage?

Typically, lenders used to be willing to lend you about five times your household income. But these days lenders are more cautious about how much they lend you, and take your affordability into account.

Some of the criteria banks and providers use to calculate how much you can borrow include:

  • Your income

  • The deposit amount

  • Your regular outgoings

  • The amount of debt you already have

  • Your credit history

Some providers also calculate your affordability using hypothetical scenarios such as interest rates increasing suddenly to twice or three times the current rate.

To increase your borrowing potential, it's a good idea to start spending sensibly and reduce your outgoings where possible, three to six months before you apply for a mortgage.

Calculate how much you can borrow with our first time buyer mortgage calculator.

What type of first time buyer mortgage should I choose?

If you're buying a home, there are two kinds of first time mortgages, the main difference is down to how much interest you pay.

You can choose from either a:

  • Fixed rate mortgage, or

  • A variable mortgage

The decision depends on how much financial security you need. First time buyer mortgage rates are affected by which type of mortgage you choose.

Learn more about getting your first mortgage.

First time buyer mortgage rates explained

Fixed rate first time buyer mortgages

With a fixed rate mortgage, the interest rate is guaranteed to stay the same over a set period of time. But the payments might be slightly higher than they would with the best variable mortgage. A first time home buyer might find the security of fixed payments reassuring.

Variable rate first time buyer mortgages

With a variable mortgage, the interest rate can change. The monthly repayments are usually a bit cheaper with a fixed rate mortgage. But if the interest rate changes - often because the Bank of England base rate changes - your repayments can increase. Some first home buyers are willing to take the risk for the sake of lower repayments initially.

The mortgages first time buyers choose varies. The best mortgages for first time buyers depends on their situation and how much financial security they need.

Learn more about fixed and variable rate mortgages.

How much of a deposit do first time buyers need?

When buying a home, the bigger your deposit the better your first time buyer interest rate will be.

These days, you need to have a deposit of at least 5% of the property value to get a mortgage. This will result in a Loan to Value ratio (LTV) of 95%, which is the maximum that almost all lenders will accept.

For example, on a £150,000 property, this would mean a deposit of £7,500. You'd get a mortgage for the remaining £142,500.

LTV is a measure of the percentage of the property price that you will need to borrow to make the purchase. Typically, most banks recommend an LTV of 80%.

You can find 95% mortgages for first home buyers from a wide range of lenders in our comparison tables.

What are the best mortgages for first time buyers?

The best mortgage will be one that you can afford to repay and which allows you to budget. Buying your first home is one of the biggest things you are likely to ever buy so the early years of paying off a mortgage can often be extremely expensive.

What help is there for first time buyers?

Many first time buyers struggle to save enough to qualify for a mortgage. This is why the UK Government has schemes in place to help people get on the property ladder and buy their first home.

Help to Buy

Help to Buy is a first time home buyer government scheme that can help you get a mortgage with a small deposit.

They offer equity loans. That's when they lend you money that you can use towards your deposit, and you repay it later. You have to repay when you sell your home and if the price of your home has risen some of the increase may also be repayable.

Shared ownership

There is another first time home buyer government scheme which offers shared ownership. That's when you buy a share of your home's value, between 25% and 75% and pay rent on the portion you don't own. This means you can buy a house with a smaller mortgage, and therefore a smaller deposit too.

Lifetime ISA

If you're over 18 but under 40, you can open a Lifetime ISA. This is a first time home buyer government incentive to help you buy your first home and save for your future. 

Under the rules you can add £4,000 a year into your Lifetime ISA until you're 50. The government adds a 25% bonus to the money you save, up to a maximum of £1,000 annually.

But you only get the extra government cash if the money is used to buy a first home, or you wait until you are 60.

You can take out the money for other reasons if you need it, but you sacrifice the government top up by doing so.

First time buyer mortgage FAQs

About our mortgage comparison

Last updated: 23 October, 2021

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Leasehold vs freehold

Leasehold vs freehold: Which should you get?

If you’re looking to buy a property in England or Wales, you’ll notice that they’re either listed as leasehold or freehold. But what’s the difference? We’re here to explain the terms, and share what they might mean for you as a property owner.

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