Best mortgages for first-time buyers in 2026

Key takeaways

• Borrowing limits: Most lenders offer 4 to 4.5x income, but specialist schemes could boost this to 5-6x.
• Deposit requirements: While 5% is the standard minimum, schemes like the £5,000 deposit mortgage and 100% LTV options exist for those with low savings.
• Rate predictability: Most first-time buyers opt for fixed-rate mortgages to ensure monthly payments remain stable.
• Professional perks: Specific roles (doctors, nurses, police, etc.) may qualify for higher income multiples and better terms. Find out more here

For more guides and expert advice on your first house purchase, head to our First-Time Buyer Hub.

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?

Yes, first-time buyers can access specialist mortgage deals and schemes that aren't always available to other borrowers, which can 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?

Should first-time buyers choose a fixed or tracker mortgage?

For most first-time buyers, a fixed rate mortgage is the safer and more popular choice. Fixed rate mortgages lock the 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. That predictability can be especially valuable for first-time buyers getting used to managing mortgage costs alongside other household expenses.

Tracker mortgages move with the base rate. So if the base rate falls, the interest rate - and therefore payments - fall too. But the same applies if rates rise. They can be a good option for buyers who expect rates to drop and want the flexibility to overpay or exit without heavy early repayment charges.

A whole-of-market broker like Tembo can compare both options across 100+ lenders to find what works best for each buyer's 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 first-time buyers are:

As the table shows, putting down a 15 or 10% deposit rather than 5% can unlock noticeably lower rates across every deal type. So it's worth considering whether an extra few months of saving could reduce costs over the mortgage term.

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 & Halifax
• Barclays
• Natwest
• Santander
• HSBC
• Virgin Money

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 in specific roles to borrow up to 5.5x their income, including:

• Solicitors & Barristers
• Doctors
• Accountants
• Vets
• Dentists

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?

There's no single 'best' mortgage term — it depends on a buyer's age, budget and priorities. However, 25 to 30 years is the most common term for first-time buyers, as it balances manageable monthly payments with a reasonable total interest cost.

Lenders set maximum age requirements that borrowers must be by the time the mortgage term ends, usually around 70 years old. This means the younger a buyer is, the more likely they are to be approved for a longer term.

A longer mortgage term, such as 30 years, spreads the cost of the loan over more time. This reduces monthly repayments, but means more interest is paid overall. A shorter term does the opposite - higher monthly payments, but less interest in total. Buyers who want the lowest overall cost should aim for the shortest term they can comfortably afford.

Read more: How long should my mortgage term be?

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

No, it isn't necessarily more difficult for first-time buyers to get a mortgage. Whether an application is accepted depends on affordability and credit history, not on whether someone has bought property before. Buyers with a decent deposit, a good credit score and a reliable income should find the process relatively straightforward.

That said, some situations can make things trickier. Being self-employed, having past credit issues, or only having a small deposit saved can all make getting approved more challenging.

Before applying, it's worth taking a few steps to improve the chances of approval:

• Check credit reports — look for errors or missed payments that could affect a lender's decision
• Review existing debts — lenders assess the debt-to-income ratio, so paying down outstanding balances can help
• Gather income evidence — payslips, tax returns and bank statements are typically required
• Avoid making large financial changes — such as switching jobs or taking on new credit in the months before applying 

However, it is still possible to be rejected from a mortgage application, even with a good income and hefty deposit. Eligibility and affordability criteria differ from lender to lender, so while one may reject an 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 and support options available to help first-time buyers purchase a home sooner. Here's a summary of the main types of help:

• Deposit support:- Low-deposit schemes help eligible borrowers buy with as little as 5% deposit, or even no deposit at all thanks to schemes like a 100% mortgage, £5,000 deposit mortgages, 5% deposit mortgages and Lifetime ISAs.
• Borrowing boosts:- Guarantor mortgages, where you use a family member's income or savings to increase borrowing power, enhanced income multiples — borrow up to 5.5x income with qualifying lenders - or professional mortgages and key worker mortgages - higher borrowing for doctors, lawyers, accountants and similar roles
• Government and shared schemes:- First Homes scheme - discounted properties for eligible first-time buyers - shared ownership - buy a share of a property and pay rent on the rest

Not sure which schemes apply? Complete your details online to find the right first-time buyer scheme for you →

Do first-time buyers get better rates?

No, first-time buyers don't automatically get better rates than other borrowers. The interest rate offered will depend on factors like deposit size, affordability and credit history, not on whether someone has bought before.

That said, there are practical steps first-time buyers can take to access the best rates available to them:

• Save a larger deposit: moving from a 5% to a 10% deposit can unlock significantly lower rates
• Improve credit scores: paying bills on time, reducing outstanding debt and correcting any errors on credit reports can all help
• Consider the full cost, not just the rate: a slightly higher rate with no product fee can work out cheaper than a lower rate with a £999 arrangement fee
• Use a whole-of-market broker: a broker like Tembo compares deals across 100+ lenders, including specialist options that aren't available on the high street

Read more: How to get access to lower mortgage interest rates →

Frequently asked questions

Do first-time buyers get better mortgage deals?

While first-time buyers have access to a range of specialist schemes that other buyers can't always use, this doesn't necessarily mean they are 'better' than standard mortgages available to all borrowers. As well as standard mortgages, first-time buyers can apply for schemes such as the government's First Homes scheme, 100% mortgages, Deposit Unlock, 5.5x Income and Professional mortgages, as well as family support schemes and shared ownership.

These schemes can help boost borrowing power or make it possible to buy with a smaller deposit. Some are also open to home movers, so it's worth checking eligibility before applying.

See also: What benefits do first-time buyers get?

Who counts as a first-time buyer in the UK?

A first-time buyer is someone who has never owned a residential property before in the UK or abroad. This is important because first-time buyer status is required to access certain government schemes and stamp duty relief.

On a joint mortgage, both applicants need to be first-time buyers to qualify for most first-time buyer benefits. Someone who has previously owned a home, even if they sold it years ago, would not meet the criteria.

Find out more in the First-Time Buyer Hub →

Do first-time buyers pay stamp duty?

First-time buyers in England and Northern Ireland benefit from reduced stamp duty land tax (SDLT). As of April 2025, no stamp duty is owed on the first £300,000 of a property's value. A 5% rate applies to the portion between £300,001 and £500,000. For properties priced above £500,000, the first-time buyer relief no longer applies and standard rates are charged.

Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT) — both have their own first-time buyer thresholds and rates.

It's worth factoring stamp duty into the total cost of buying, alongside your deposit and legal fees, when working out how much you need to save.

What credit score do first-time buyers need for a mortgage?

There is no universal minimum credit score for a mortgage — every lender sets its own criteria. That said, a stronger credit history generally improves both the chances of being approved and the interest rate on offer.

Factors that can affect a mortgage application include missed or late payments, high levels of outstanding debt, a limited credit history, and any County Court Judgements (CCJs). Some specialist lenders will consider applicants with imperfect credit, though the rates available may be higher.

Checking a credit report before applying — and addressing any errors or issues — is a practical first step. A whole-of-market broker can help match applicants to lenders most likely to accept their profile.