First-Time Buyer Mortgages UK (2026)
Your deposit size and your income both set limits on what's realistic. Know both numbers before you start viewing properties.
Most UK mortgages ask for a minimum deposit of 5% of the property price, but the average first-time buyer puts down around £53,000. Pricing improves at 10%, 15% and 25% deposit levels. The other number that matters is income: most lenders will lend 4 to 4.5 times your annual income, rising to 5.5 times at some specialist lenders.
How much deposit do you need
The minimum most lenders accept is 5% of the property price, but that tier is rarely the cheapest available. Pricing steps down as your deposit grows.
| Deposit | Loan-to-value | What it means |
|---|---|---|
| 5% (the minimum most lenders accept) | Highest LTV band | Entry point. Pricing improves noticeably as you save more. |
| 10% | 90% LTV | Costs significantly more than a 75% LTV deal. |
| 25% or more | 75% LTV | Where the most competitive rates typically start. |
The average UK first-time buyer deposit is around £53,000, well above the 5% minimum. Government schemes such as the Lifetime ISA can help you build savings toward a deposit faster. Check the scheme's current terms directly rather than relying on a figure quoted secondhand.
How much you can borrow
Most UK lenders offer 4 to 4.5 times your annual income, rising to 5.5 times at some specialist lenders. Your existing debts, credit commitments and living costs are factored into the final figure, so two buyers on the same salary can get different offers. A mortgage agreement in principle before you start house-hunting gives you a firm budget and shows sellers you're ready to move.
Costs beyond the deposit
Lenders typically charge an arrangement fee of £500 to £2,000 for setting up the mortgage, payable upfront or added to the loan (adding it means paying interest on the fee for the full term). You'll also want a survey beyond the lender's basic valuation: a Level 2 HomeBuyer Report runs £400 to £700 and suits most homes, while a Level 3 Full Building Survey runs £600 to £1,500 and suits older or unusual properties. On stamp duty, first-time buyers pay nothing up to £425,000, then 5% up to £625,000. Above that, standard bands apply instead.
Risks to watch for as a first-time buyer
In England and Wales, a seller can accept a better offer even after accepting yours, right up until contracts are exchanged. This is called gazumping, and around 1 in 3 property transactions in England fall through before exchange according to industry estimates, sometimes after buyers have paid for surveys and legal work. It doesn't work this way in Scotland. Your mortgage offer also only stays valid for 3 to 6 months, so a long chain may force you to reapply, potentially at a different rate.
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Questions answered
Most UK lenders ask for a minimum deposit of 5% of the property price. Pricing improves as your deposit grows, with the biggest jumps at 10%, 15% and especially 25% deposit levels. A 90% loan-to-value mortgage costs significantly more than a 75% loan-to-value deal.
Most UK lenders offer 4 to 4.5 times your annual income, though some specialist lenders go up to 5.5 times for higher earners. Existing debts, credit commitments and living costs also affect the final figure. A mortgage agreement in principle gives you a clear number before you start viewing.
The average UK first-time buyer deposit is around £53,000, well above the 5% minimum. That gap shows how many buyers are saving longer, or getting help from family, to reach a lower loan-to-value band and access better pricing.
Yes. First-time buyers can use government schemes such as the Lifetime ISA to boost savings toward a deposit. Check the scheme's current rules and limits directly, as exact bonus terms aren't something we quote figures for here.
Often less, or none. Standard stamp duty in England and Northern Ireland runs 0% up to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million, and 12% above that. First-time buyers get relief instead: 0% up to £425,000, then 5% up to £625,000. Above £625,000, standard bands apply instead.
Yes. It gives you a clear borrowing figure before you start looking, so you know your budget and can show sellers you're a serious buyer. It also flags any affordability issues early, while there's still time to address them.
Lenders typically charge an arrangement fee of £500 to £2,000 for setting up the mortgage. You can pay it upfront or add it to the loan, but adding it means paying interest on the fee for the whole term.
Your lender arranges a basic valuation to confirm the property is worth the price, but that isn't a full inspection. A Level 2 HomeBuyer Report costs £400 to £700 and suits most homes, while a Level 3 Full Building Survey costs £600 to £1,500 for older or unusual properties.
In England and Wales, a seller can accept a higher offer even after accepting yours, right up until contracts are exchanged. Around 1 in 3 property transactions in England fall through before exchange, according to industry estimates. Scotland doesn't work this way.
Repayment is the standard choice for residential buyers. Each payment covers interest plus some capital, so the mortgage is fully repaid by the end of the term. Interest-only is more common in buy-to-let, where landlords plan to sell the property to repay the capital.