Credit Score Basics > Best First-Time Buyer Mortgages UK 2025: Compare Your Options

Best First-Time Buyer Mortgages UK 2025: Compare Your Options

Wollit Team2 minute read · Updated 17th July 2025

Getting your first mortgage doesn't have to be overwhelming. This guide helps you compare first time buyer mortgages UK-wide and find the best deal for your situation.

What Are First-Time Buyer Mortgages?

First-time buyer mortgages are designed for people purchasing their first property. They offer lower deposit requirements (often just 5%) and competitive rates. You qualify if you've never owned property anywhere in the world.

Having a strong credit score is crucial for accessing the best rates and could save you thousands over your mortgage term.

Fixed-Rate vs Variable-Rate Mortgages

Fixed-rate mortgages lock in your interest rate for a set period (2, 5, or 10 years), giving you predictable monthly payments. This stability is ideal for first-time buyers who need to budget carefully.

Variable-rate mortgages fluctuate with interest rates. While they can offer savings when rates fall, they create uncertainty in your monthly payments.

Low Deposit Mortgage Options

95% mortgages require just a 5% deposit, making homeownership more accessible. Many high street banks offer these through the government's Mortgage Guarantee Scheme.

Pros: Lower upfront costs and faster route to homeownership Cons: Higher interest rates and potential negative equity risk

Building your credit score before applying significantly improves your chances of approval.

Using Mortgage Calculators

A first-time buyer mortgage calculator estimates your borrowing capacity and monthly payments based on your income, deposit amount, property value, and mortgage term. These tools help you set realistic budgets and understand the total cost of homeownership.

Finding the Best Mortgage Deals

Look beyond the headline interest rate when comparing deals:

Initial rates and what you'll pay after introductory periods
Arrangement fees, valuation costs, and legal charges
Overpayment options and flexibility
Cashback or incentive offers

Many lenders offer first-time buyer perks like free valuations or reduced fees.

Eligibility Requirements

Key factors lenders consider:

Credit score: Higher scores unlock better rates
Income stability: Consistent employment history preferred
Deposit size: Larger deposits typically mean lower rates
Existing debts: Lower debt-to-income ratios improve applications

Improve your chances:

Register on the electoral roll
Check your credit report for errors
Pay all bills on time
Avoid new credit applications before applying

Government Schemes for First-Time Buyers

Lifetime ISA: Save up to £4,000 annually with a 25% government bonus towards your deposit.

First Homes Scheme: Get 30-50% discounts on selected new-build properties.

Shared Ownership: Buy a share of a property (10-75%) and pay rent on the remainder, with the option to increase your share over time.

Getting Professional Advice

Mortgage brokers can access the entire market, including exclusive deals not available to direct applicants. Many offer free consultations, with fees often paid by lenders rather than borrowers.

Ensure any advisor is FCA-regulated and offers transparent fee structures.

Tips for Securing the Best Deal

Save for a larger deposit: Increasing from 5% to 10% can significantly reduce your interest rate.

Improve your credit score: This often has the biggest impact on rates available to you. Credit improvement strategies can save thousands over your mortgage term.

Budget for additional costs: Factor in stamp duty, legal fees, surveys, and moving expenses. First-time buyers get stamp duty relief on properties up to £500,000.

Get an Agreement in Principle: This shows sellers you're a serious buyer and confirms your budget before house hunting.

Your Next Steps: Taking Action

Maintaining good credit after securing your mortgage ensures you can access competitive rates when you remortgage. Set up automatic payments for your mortgage and bills to maintain a positive payment history.

Key takeaways: