Compare First-Time Buyer Mortgages

A first-time buyer mortgage is a home loan specifically for buyers who have never owned a property.

Yes, some lenders offer 95% LTV mortgages for first-time buyers.

If you are based in Wales, the Help to Buy scheme is available for first-time buyers and existing homeowners who want to purchase a new-build home. However, the scheme is only available to people buying their first home in England. Regardless of location, it is not available for buyers hoping to purchase an additional home or a buy-to-let property.

You may be able to remortgage and borrow more on a Help to Buy mortgage for one of the following reasons: to pay back part or all of your equity loan to make government-approved structural changes to the property to transfer ownership of the property. Before you can remortgage, you will need to apply for permission from the government,

No, some lenders don’t offer Help to Buy mortgages, so it’s important to check if a provider is participating in the scheme.

Similarly to standard mortgages, Help to Buy mortgage rates vary depending on the lender. Therefore, it’s important to research what rates you may be offered using a Help to Buy mortgage before applying to ensure that you can afford the repayments.

Not necessarily. The rate you'll pay will depend largely on how much of a deposit you have and your credit history. Generally, the bigger the deposit you can put down, the lower your interest rate may be.

Most lenders require a deposit of at least 5% to 10% for a first-time buyer mortgage. However, saving up a larger deposit of 15% or more could help you access lower interest rates.

The fees you pay on a mortgage will vary depending on the lender. Common mortgage fees to look out for include arrangement fees, product fees, valuation fees and legal fees.

First-time buyers in England and Northern Ireland only pay stamp duty on properties costing over £425,000. So you might not have to pay any stamp duty if the property you are buying costs less than £425,000 and you and anyone you are buying a house with are first-time buyers.

A rate of 5% is payable on any portion of the value of the property you’re buying that sits between £425,001 and £625,000. And if the property costs over £625,000, you won’t qualify for any first-time buyer stamp duty relief.

The tax is different if the property is in Scotland or Wales. In Scotland, stamp duty has been replaced by Land and Buildings Transaction Tax, with a nil-rate band for first-time buyers for properties up to £175,000.

In Wales, this tax is known as Land Transaction Tax, with no tax to pay for properties worth less than £180,000 whether you are a first-time buyer or a home mover.

» MORE: First-time buyer stamp duty relief explained

Each lender has its own criteria that you’ll need to meet to qualify for a first-time buyer mortgage, for example, meeting the age requirements and having a good credit score. Lenders must also run checks to assess whether you can comfortably afford your mortgage repayments.

First-time buyer mortgages tend to feature incentives, such as money towards legal fees, cashback or lower product fees.

As with all mortgages, some first-time buyer home loans come with additional fees such as a product fee. So it’s important to find out the full cost of a mortgage before applying to avoid any unexpected additional expenses.

You can improve your chances of getting a first-time buyer mortgage by working out how much you can afford to borrow. Using a mortgage calculator can give you an idea of the size of loan you can afford based on your income.

Saving up a larger deposit can also boost your chances of getting a first-time buyer mortgage and could help you access better deals. Checking your credit score can give you an idea of the types of mortgage deals you may be eligible for and whether it’s worth improving your credit history before applying.

There are different types of mortgages available for first-time buyers including fixed-rate mortgages, tracker mortgages and standard variable rate mortgages.

You can compare first-time buyer mortgages using our mortgage comparison tool, which allows you to sort products by fees, rates and overall cost.

Government schemes such as Help to Buy or Shared Ownership could help first-time buyers finance their first home. Mortgage brokers also offer guidance on the house-buying process and the types of mortgages you may be eligible for based on your financial circumstances.

» COMPARE: Shared ownership mortgages

If you can’t raise a deposit for a first-time buyer mortgage, it may be worth considering a 100% mortgage. This type of home loan doesn't require a deposit but you’ll need a family member or close friend to act as a guarantor for the loan repayments and be able to provide some form of security to offset the missing deposit.