Buying your first home is one of the biggest financial steps you will ever take, and the mortgage is the part that makes it possible. If you are new to all this, the jargon and the numbers can feel overwhelming. This guide explains first-time buyer mortgages in plain English: what they are, how to get one, and what to expect.

What a first-time buyer mortgage is

A first-time buyer mortgage is simply a mortgage for someone buying their first home, who has never owned property before. The mortgage itself works like any other: a lender lends you most of the purchase price, secured against the property, and you repay it with interest over a term of typically 25 to 35 years. What makes first-time buyers a distinct group is that lenders, schemes and stamp duty rules often treat them differently, sometimes more favourably.

How much deposit you need

To buy your first home you need a deposit, the part of the price you pay yourself, with the mortgage covering the rest. Most lenders require a minimum deposit of 5% of the property price, known as a 95% loan-to-value mortgage. A bigger deposit, such as 10% or more, unlocks lower interest rates, as our guide to how much deposit you need explains. In 2026, 5% and 10% deposit deals are widely available.

How much you can borrow

How much you can borrow depends mainly on your income and outgoings. Lenders typically lend around 4 to 4.5 times your annual income, though some offer up to 5.5 times for first-time buyers who meet certain criteria. They also assess affordability, checking that you could keep up repayments, including if rates rose. Our guide to how much a first-time buyer can borrow explains income multiples and affordability in detail.

Getting a mortgage in principle

Before you start viewing homes seriously, it is wise to get a mortgage in principle, sometimes called a decision or agreement in principle. This is an indication from a lender of how much they might lend you, based on some initial checks. It is not a guarantee, but it shows estate agents and sellers you are a serious buyer, as our guide to the mortgage in principle explains. It usually involves only a soft credit check.

Your credit and affordability

Lenders look closely at your credit history and your finances. A good credit record improves your chances and the rates you are offered, while problems can make borrowing harder or dearer. They will also examine your income, spending, debts and commitments to judge affordability. Getting your finances in good shape before applying, and checking your credit file, puts you in a stronger position, as our guide to your credit score and mortgages explains.

Stamp duty for first-time buyers

First-time buyers in England and Northern Ireland get relief on stamp duty land tax. Since April 2025, first-time buyers pay no stamp duty on a home costing up to £300,000, then 5% on the portion between £300,001 and £500,000, with no relief if the home costs more than £500,000. This can save thousands compared with other buyers, as our guide to stamp duty for first-time buyers explains.

Schemes that can help

Several schemes exist to help first-time buyers. The Lifetime ISA adds a 25% government bonus to your savings towards a first home, shared ownership lets you buy a share of a property, and the mortgage guarantee scheme supports 95% mortgages. Help to Buy in England has ended, but other routes remain. Our guides to the Lifetime ISA and shared ownership explain the main options.

Repayment versus interest-only

Almost all first-time buyer mortgages are repayment mortgages, where each monthly payment covers both interest and a little of the amount borrowed, so the debt is cleared by the end of the term. Interest-only mortgages, where you pay only the interest and repay the capital separately, are generally not suitable or available for first-time buyers buying a home to live in. So you can expect a repayment mortgage that steadily pays off your home.

Choosing your mortgage rate

You will choose a deal, most commonly a fixed rate, where your interest rate and payments stay the same for a set period such as two or five years, giving certainty. The alternative is a variable rate that can change. With the Bank of England base rate at 3.75% in 2026, rates have eased from their recent highs. Choosing the right deal and length matters, as our guide to fixed versus variable rates explains.

Using a mortgage broker

Many first-time buyers use a mortgage broker, who can search the market, explain your options and handle much of the paperwork. A good broker can find deals you might miss and guide you through a process that is new to you. You can also go directly to lenders. Either way, getting advice as a first-time buyer can be reassuring, given how much is at stake and how unfamiliar the process is at first.

The buying process in brief

Buying your first home follows a series of steps: saving your deposit, getting a mortgage in principle, finding a home and making an offer, applying for the mortgage, having the property valued, instructing a solicitor for the legal work, and finally exchanging and completing. Our guide to buying your first home step by step walks through the whole journey so you know what happens and when.

Getting your finances ready

Before applying, it pays to get your finances into the best possible shape. Check your credit file and correct any errors, register on the electoral roll, reduce existing debts where you can, and avoid taking on new credit in the months before you apply. Lenders look closely at how you manage money, so a tidy, stable financial picture improves both your chances of approval and the interest rate you are offered.

The monthly cost of owning

It helps to think beyond getting the mortgage to living with it. Your monthly payment depends on how much you borrow, your interest rate and your term, and you will also have buildings insurance, council tax, utilities and maintenance to budget for. Working out the realistic monthly cost of a home, not just whether you can get the mortgage, ensures you buy somewhere you can comfortably afford to live in, not just to buy.

Is now a good time to buy?

Many first-time buyers wonder whether to buy now or wait. With the Bank of England base rate at 3.75% in 2026 and lower than its recent peak, and low-deposit deals widely available, conditions have eased compared with a couple of years ago. But the right time depends on your own readiness: your deposit, your job security and whether the monthly payments fit your budget. Buying when you are financially ready usually matters more than trying to time the market.

In short

A first-time buyer mortgage helps you buy your first home, with a deposit of usually at least 5% and the lender covering the rest. How much you can borrow depends on your income and affordability, typically around 4 to 4.5 times income. Get a mortgage in principle early, make the most of stamp duty relief and schemes, and choose your rate carefully. Good preparation makes the whole process far less daunting.

Where to get help and next steps

Read our guides to how much deposit you need, how much you can borrow, and buying your first home step by step. This is general information, not mortgage or financial advice; consider speaking to a qualified mortgage adviser about your own situation.