How to find the best first-time buyer mortgage rate
The table above shows deals priced for first-time buyers specifically, which matters because lenders price the same product differently depending on who's borrowing. A rate you saw quoted on a general comparison page may not be the rate available to you on your first purchase.
Your deposit is the single biggest lever on the rate you'll be offered — bigger than which lender you choose, and bigger than anything you can negotiate. Everything else is secondary to getting into a lower loan-to-value band.
Rate is not the whole cost
Add the product fee, then subtract any cashback and the value of a free valuation. First-time buyer deals lean heavily on incentives, and a slightly higher rate with £500 cashback and no fee can beat a lower headline rate.
Deposit thresholds are cliff edges
Reaching 90% LTV rather than 91% can move you into a whole cheaper price band. If you're close to a threshold, finding a little more deposit is usually the highest-return thing you can do.
Get an agreement in principle early
It costs nothing, doesn't harm your credit file with most lenders, and estate agents take offers far more seriously when you have one.
Your deposit sets your rate
Mortgage pricing is tiered by loan-to-value, and the tiers are hard steps rather than a smooth curve. The gap between the 95% band and the 75% band is typically far larger than the gap between the cheapest and most expensive lender inside any single band — which is why the deposit question dominates the lender question.
It's also why gifted deposits from family are so common. If a contribution moves you from a 10% deposit to a 15% one, the effect on your monthly payment is usually much larger than people expect. Lenders will want a signed letter confirming the money is a gift and not a loan, and will check where it came from.
What lenders look at besides the rate
Affordability comes first. Lenders work from your income, your committed outgoings and your existing credit commitments, then stress-test the payment against a higher rate than the one you're applying for. A car finance agreement or an active credit card limit can reduce how much you're offered by more than the balance would suggest.
Your credit file matters, but not in the way people fear. Lenders are looking for a stable, verifiable pattern — being on the electoral roll, an address history without gaps, and no recent missed payments — rather than a high score. If you're new to credit entirely, that can be its own problem, since there's nothing to assess.
Employment type shapes the paperwork. Employed applicants typically need three months of payslips; self-employed applicants usually need two years of accounts or SA302s, and some lenders will consider one year. If you're on probation or recently changed jobs, lender policies differ considerably — this is a case where it's worth knowing which lenders are relaxed about it before you apply.
First-time buyer costs beyond the mortgage
Budget for these separately from your deposit, because they come out of the same savings and people routinely underestimate them.
Stamp duty
First-time buyers get relief in England and Northern Ireland up to a threshold, with different rules in Scotland and Wales. Check the current thresholds — they've changed several times in recent years.
Conveyancing
Typically £1,000–£2,000 including searches. Purchases rarely include free legals, unlike remortgages.
Survey
The lender's valuation is for the lender, not for you. A homebuyer's report or building survey costs a few hundred pounds and regularly finds more than it costs.
Moving and immediate costs
Removals, and the appliances and furniture the previous owner is taking with them.
Common questions
Do first-time buyers get better mortgage rates?
Not usually on rate alone — first-time buyers typically borrow at higher loan-to-values, which puts them in more expensive price bands. What they do get is incentives: cashback, free valuations and occasionally contributions to legal costs are more common on first-time buyer products.
What deposit do I need as a first-time buyer?
5% is the practical minimum with mainstream lenders, but the pricing improves sharply as you go up. 10% opens up considerably more choice, and 15% or more puts you in genuinely competitive territory.
How much can a first-time buyer borrow?
Commonly around four to four and a half times income, though some lenders go higher for certain professions or higher earners. The binding constraint is usually the lender's affordability stress test rather than the headline income multiple.
Should a first-time buyer fix for 2 or 5 years?
Five years suits buyers who are settled and want a predictable payment while they absorb the other costs of owning a home. Two years suits buyers who expect their deposit position or income to improve significantly, since they can re-enter the market in a cheaper LTV band sooner.
How current are the rates on this page?
We collect product data from the lenders we track from their published information and refresh it regularly, so the first-time buyer products above reflect our most recent check of each lender's range. Lenders can withdraw or reprice a deal at any time, sometimes with a few hours' notice, and a rate shown here is not an offer — availability depends on your circumstances, the property and the lender's own criteria.