Best mortgages for first time buyers

How much can first-time buyers borrow?

Typically, lenders will offer first-time buyers between 4 and 4.5 times their household income. So on a joint income of £60,000, that's a maximum of £240,000–£270,000. But that figure isn't fixed; it's influenced by your credit score, spending habits, and whether you have dependents.

There are specialist schemes that allow you to borrow more. A 5.5x Income Mortgage lets you borrow up to 5.5 times your salary, while a Professional Mortgage could unlock up to 6.5 times your income for qualifying professionals. Guarantor mortgages, shared ownership and other low deposit schemes could help you buy even with only a small deposit saved. On average, Tembo customers boost their buying budget by £82,000 by accessing schemes their bank may never have mentioned.

Use our Mortgage Calculator to see how much you could borrow →

How much deposit do first-time buyers need?

Most lenders expect at least a 5% deposit, though putting down 10–15% typically gives you access to better rates. On a £300,000 property, a 5% deposit is £15,000 and a 10% deposit is £30,000.

There are options for buyers with smaller deposits, including 100% mortgages and family-assisted schemes, though eligibility depends on your income and credit history. If you're still saving, a Lifetime ISA adds a 25% government bonus of up to £1,000 per year on top of your savings.

How much deposit do I need? Full guide →

Do first-time buyers get better mortgage deals?

There are specialist mortgage deals aimed specifically at first-time buyers to help them get on the ladder sooner. As well as standard mortgages, which are open to all borrowers, first-time buyers can also use schemes like the government's First Homes scheme, the new £5,000 deposit mortgage, 100% mortgages, Deposit Unlock, 5.5x Income and Professional mortgages, as well as family support schemes and shared ownership.

These schemes help you to boost what you can borrow, or allow you to get a mortgage with only a small deposit saved up. However, home movers and second steppers can also use some of the same specialist schemes that first-time buyers have access to.

There are thousands of mortgages out there, and it can be confusing to know which product or lender to apply for. To make things easier, we’ve outlined our top 5 mortgages for first-time buyers from across the market below. To see if you could qualify for any of these mortgage products, complete your details online for free to see your best options

You might also like our guides on What benefits do I get as a first-time buyer?

Fixed vs. tracker — which is best for first-time buyers?

Fixed rate mortgages lock your interest rate for a set period (typically 2 or 5 years), giving you certainty over your monthly payments regardless of what happens to the Bank of England base rate. Most first-time buyers opt for a fixed rate for the predictability it offers.

Tracker mortgages move with the base rate. So if the base rate fall, your interest rate, and therefore payments, fall too. But you also take on the same risk if they rise. They can be a good option if you expect rates to drop and want the flexibility to overpay or exit without heavy early repayment charges.

For most first-time buyers, a 2 or 5-year fixed rate is the safer starting point. A whole-of-market broker like Tembo can compare both options across 100+ lenders to find what works best for your situation.

Best first-time buyer mortgages and schemes:

1. Best rates for 5% and 10% "traditional" mortgages

Most standard mortgages available across the market are open to first-time buyers. So you don't necessarily have to find a strictly 'first-time buyer mortgage' to find the best deal for you. If you're buying with a small deposit, the interest rate you're offered depends heavily on your loan-to-value ratio — the percentage of your home's value that you're borrowing. With a 5% deposit, you're borrowing 95% (a 95% LTV mortgage). Save a little longer and put down 10%, and you're borrowing 90% (a 90% LTV mortgage).

Lenders view 90% LTV borrowers as lower risk than 95% LTV borrowers, and they price their products accordingly. Comparing rates across both tiers — and understanding what an extra few months of saving could save you in interest over a 2 or 5-year term — is one of the most useful things you can do early in your homebuying journey.

Right now, the lowest rates across our panel of over 100 lenders for a 5% deposit are 4.64% for a 2-year tracker deal, 5.22% for a 2-year fixed rate deal, and 5.09% for a 5-year fixed rate*. For those with a 10% deposit, the lowest rates across our panel are 4.54% for a 2-year tracker deal, 4.72% for a 2-year fixed rate deal, and 4.68% for a 5-year fixed rate.

Compare live first time buyer mortgage rates →

Remember that rate comparison tools may only show you the headline rate, but that's not the full picture. A mortgage with a slightly higher rate and no product fee can work out cheaper than a lower rate with a £999 arrangement fee, particularly on smaller mortgages. Our Mortgage Comparison tool lets you sort the deals you see by lowest interest rate, lowest monthly cost, or lowest cost over the deal period, as well as showing you the fees involved in each.

Even if the rate comparison shows you an appealing deal, eligibility isn't guaranteed. The rate you're actually offered will depend on your credit score, income, spending, and any outstanding debts. Some buyers with complex income situations - self-employed, contractors, or those with multiple income streams — may find that standard rate comparison doesn't fully reflect the deals available to them through specialist lenders.

*Sourced from Tembo's lender panel, based on a 95%/90% LTV. Rates accurate June 2026, subject to change.

2. Freedom to Buy

Freedom to Buy is the government's permanent low-deposit mortgage scheme, launched in July 2025 as the successor to the Mortgage Guarantee Scheme that had been running since 2021. It allows you to buy a home with just a 5% deposit by giving lenders a government-backed guarantee on the higher-risk portion of your mortgage.

Here's how it works in practice: when a lender approves a Freedom to Buy mortgage, the government guarantees the slice of lending above 80% LTV. If a borrower couldn't keep up with repayments, the government would cover a portion of the lender's losses. This protection gives lenders the confidence to offer 95% LTV deals to buyers who otherwise wouldn't be able to access them.

The scheme is available from major lenders, including Lloyds, Barclays, Halifax, Natwest, Santander, HSBC, and Virgin Money, among others. But this isn't the only 5% deposit mortgage available. Since its launch, many lenders have offered their own 95% LTV mortgages, separate from Freedom to Buy.

The obvious advantage is that your deposit requirement drops to 5% of the purchase price. On a £250,000 home, that's £12,500 rather than £25,000 for a 10% deposit - a meaningful difference in how quickly you can get into your first home.

The scheme works on properties worth up to £600,000, making it useful across most regions of the UK, including many parts of London. But it isn't available on new build properties.

One thing to keep in mind is that with a 5% deposit, you'll likely be charged higher interest rates than those with a 10% or 15% deposit, and your monthly repayments will be higher.

3. Lloyds' £5,000 deposit mortgage

One of the latest developments for first-time buyers is the launch of a £5,000 deposit mortgage from one of the UK's major banks. It's aimed at renters who can comfortably afford mortgage payments, but have struggled to save a deposit. Importantly, it’s available for homes worth up to £300,000.

The scheme aims to tackle one of the biggest barriers to homeownership: saving the upfront deposit. Our data shows the average first-time buyer deposit still sits at £37,375. This scheme could lower the bar to entry substantially, helping aspiring buyers get onto the ladder years sooner.

However, there are a few important limitations to understand before assuming this is the right route.

Because your deposit is small relative to the property value, your loan-to-value (LTV) ratio will be high - in some cases above 95%. That typically means higher interest rates than those with larger deposits, and larger monthly repayments as a result. You're also borrowing a greater proportion of your home's value, which increases the risk of negative equity if house prices fall.

The property cap is £300,000, which is more restrictive than other 5% deposit schemes. In parts of London and the South East, this cap may rule out most properties entirely.

The product also isn't available on new build properties, new build conversions, or property renovations.

4. Skipton’s Joint Borrower Sole Proprietor 

Often, one of the barriers to homeownership that first-time buyers face is getting a mortgage loan big enough to buy in the area they want. Typically, you can borrow between 4-4.5x your household income for a mortgage (although some applicants can borrow up to 5 or even 6 times their income).

So if you and your partner together earn £60,000, that means you are likely to be offered a mortgage loan between £240,000 - £270,000, although you may be offered less if one of you is self-employed. This might not be enough to buy in your local area, or get a house that fits your needs.

Skipton Building Society’s Joint Borrower Sole Proprietor mortgage is a way for first-time buyers to boost their borrowing capacity through the support of a loved one. At Tembo, we call this type of mortgage an Income Boost. It works by adding part of or all of a friend or family member’s earnings to yours as a guarantor, increasing your total income, which can allow you to borrow more. 

Skipton isn’t the only lender that offers this type of guarantor mortgage, but it does have a couple of advantages. For one, Skipton allows you to add up to 4 applicants to the mortgage, and use all four incomes. So if you are buying with a partner, you could both add a parent to your application, significantly boosting your borrowing power. 

Another advantage of Skipton’s product is your guarantor doesn’t have to be a blood relative. This means that friends could step in and help you get on the ladder sooner through their income, without having to give you any cash!

Plus, you only need a 5% deposit for the property you want to buy, although the more money you can put down at the start, the better mortgage interest rates you’ll have access to.

5. Gen H’s Income Booster

Gen H’s Income Booster mortgage works in the same way as Skipton’s Joint Borrower Sole Proprietor mortgage in that you'll add a loved one’s income to yours to boost your borrowing power.

Another benefit of Gen H’s Income Booster is its ejector seat feature. This allows you to extend the mortgage term by removing your guarantors partway through, so they don’t exceed the maximum age criteria. You can also choose to remove your guarantors earlier when you can afford the mortgage by yourself, by remortgaging.

6. Loughborough's Buy for Uni 

The Loughborough's Buy for Uni is a specialist mortgage designed for university students who want to purchase a home to live in, with help from their family. Your parents or grandparents will help you purchase the home, and then you will rent out the other rooms to friends or other students to cover the cost of the mortgage. This helps you avoid paying soaring rent prices, while also getting your foot on the property ladder.

Read more: Can a student get a mortgage?

You might also like: Should I pay off my student loan early?

7. Metro’s Professional mortgages

Metro’s professional mortgage is just one of a number of mortgage products aimed at those who work in “professional” fields. It allows first-time buyers who are solicitors, barristers, doctors, accountants, vets, dentists or those in similar roles to borrow up to 5.5x their income for a mortgage. This enhanced borrowing can be a lifesaver for borrowers struggling to afford to buy where they live. 

However, in order to qualify for this mortgage product, you need to have qualified in the last ten years, be registered with an appropriate UK professional body and work in a field related to your profession. 

Read more: What is a professional mortgage?

8. Accord’s Boost LTI

Accord Mortgages offer a Boost LTI range, which lets qualifying applicants borrow up to 5 or even 5.5x their household earnings for a mortgage. This can be a game-changer for first-time buyers looking to purchase their first home in areas where properties are more expensive. 

However, in order to be eligible for this product, you must have a household income of £60,000 or more, as well as pass Accord’s affordability and credit checks.

Another thing to keep in mind is that this product is only offered on LTVs of up to 90%, or 85% for new builds. That means you need to have a 10% deposit saved if you’re purchasing an existing home, and a 15% deposit saved if you are purchasing a new build property.

Not all schemes suit every buyer. A specialist broker can identify which you're eligible for and how much they could boost your budget.

What first-time buyer scheme is right for me? →

What mortgage term is best for a first-time buyer?

How long your mortgage term should be will be influenced by your age, and whether you want to keep your monthly costs low, or reduce the amount of interest you’ll pay. Lenders set maximum age requirements that borrowers must be by the time the mortgage term has ended - usually 70 years old. This means the younger you are, the more likely you are to get a longer mortgage term.

Having a longer mortgage term such as a 30-year mortgage will also help spread the cost of your loan, as you’re borrowing the same amount over a longer period of time. This will reduce your monthly repayments, but will mean you'll pay more interest overall. So if you want to reduce the amount of interest you pay, you should opt for a shorter mortgage term.

Read more: How long should my mortgage term be?

Is it difficult for first-time buyers to get a mortgage?

It isn’t necessarily more difficult for first-time buyers to get a mortgage; whether you’ll be accepted for a loan depends on your affordability and credit history as opposed to if you’ve bought property in the past. If you have a decent house deposit saved up, have a good credit score and reliable income, it should be fairly easy for you to get a mortgage. If you are self-employed, have had credit issues, or only have a small amount of money saved, you could find getting a mortgage more difficult. 

However, it is still possible for you to be rejected from a mortgage application, even with a good income and hefty deposit. Eligibility and affordability criteria differs from lender to lender, so while one may reject your application, another could accept it. This is where working with an experienced mortgage broker like Tembo can be helpful. As experts in mortgage affordability, we can help you find the right deal for you. So you can apply knowing you are likely to be accepted, and will get the best deal for you from across the market.

What help do first-time buyers get?

There are a number of budget-boosting schemes available to help first-time buyers purchase a home sooner. These range from guarantor mortgages and low-deposit schemes which allow you to buy with only a small amount saved up, to specialist mortgages for key workers, professionals and high-earners. 

Do first-time buyers get better rates?

First-time buyers don’t necessarily get better rates than other borrowers. The interest rate you will be offered will be based on how much deposit you put down, as well as your affordability and credit history. However, there are ways to get access to lower mortgage interest rates.