The best mortgage rates for first-time buyers

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If you’re hoping to buy your first home soon, searching for the best mortgage rates for first-time buyers is an essential part of the process.

Relaxed affordability stress tests introduced in March mean that many first-time buyers can now borrow more, which could be helping to mitigate April’s reduction in stamp duty relief.

Mortgage approvals rose in May, according to the Bank of England – the first increase since December 2024.

And with a burgeoning price war developing among mortgage lenders ahead of the Bank of England’s next interest rate decision on 7 August, now could be a good time to compare mortgage deals.

Getting the best possible mortgage rate is important, because it makes a big difference to your monthly repayments – and the interest you pay overall.

First-time buyers can start comparing mortgage rates as soon as they decide to buy. You can also apply for a decision in principle from a lender or broker, which helps you understand how much you can afford to borrow.

Compare mortgage deals and get a free mortgage in principle with L&C* 

Mortgage approvals increase: May saw the first monthly rise in approvals this year

Best mortgage rates for first-time buyers with different deposits 

The deals below are the best rates aimed at first-time buyers. The best rates for home movers or those remortgaging may be different. 

The rates and repayments below are based on a purchase price of £311,000, which was the average property purchase price for first-time buyers in 2024, according to Halifax, and a term of 25 years. 

If you have a term longer than 25 years, you would pay less each month, but more over the whole time you have the mortgage.  

Mortgage rates change often, so it’s a good idea to find the deal that could be best for you by comparing rates and getting a mortgage in principle*, with our broker partner L&C.

Best mortgage rates for first-time buyers with a 5% deposit

• Two-year fix: Bank of Ireland has a two-year fixed rate at 4.90 per cent with a £0 product fee. Monthly repayments are £1,710.
• Five-year fix: HSBC has a five-year fixed rate at 4.79 per cent with a £0 product fee and £350 cashback. Monthly repayments are £1,670.

 Best mortgage rates for first-time buyers with a 10% deposit

• Two-year fix: Barclays has a two-year fixed rate at 4.39 per cent with a £999 product fee and £250 cashback. Monthly repayments are £1,543.
• Five-year fix: Bank of Ireland has a five-year fixed rate at 4.44 per cent with a £0 product fee. Monthly repayments are £1,546.

Best mortgage rates for first-time buyers with a 15% deposit

• Two-year fix: HSBC has a two-year fixed rate at 4.13 per cent with a £999 product fee and £250 cashback. Monthly repayments are £1,418.
• Five-year fix: HSBC has a five-year fixed rate at 4.19 per cent with a £999 product fee and £350 cashback. Monthly repayments are £1,427.

Best mortgage rates for first-time buyers with a 25% deposit 

• Two-year fix: Nationwide has a two-year fixed rate at 4.09 per cent with a £999 product fee and £500 cashback. Monthly repayments are £1,248.
• Five-year fix: NatWest has a five-year fixed rate at 4.09 per cent with a £995 product fee. Monthly repayments are £1,248. 

Best mortgage rates for first-time buyers with a 40% deposit

• Two-year fix: HSBC has a two-year fixed rate at 4.08 per cent with a £0 product fee. Monthly repayments are £993.
• Five-year fix: NatWest has a five-year fixed rate at 4.08 per cent with a £0 product fee. Monthly repayments are £993. 

Guide: How to get a mortgage as a first-time buyer 

What mortgage can I get as a first-time buyer?

The mortgage deal you can get as a first-time buyer depends on the size of your deposit, as well as your personal circumstances, your income, outgoings, any other outstanding debts and credit score.

Having a bigger deposit relative to the purchase price opens up cheaper mortgage rates, as lenders see you as a less risky borrower.

Mortgage rates are offered based on the size of the mortgage versus the property’s value. This is known as the loan-to-value (LTV) and is the reverse percentage of your deposit amount. For example:

• if you had a 10 per cent deposit, your mortgage would be 90 per cent LTV
• if you had a 25 per cent deposit, it would be 75 per cent LTV
• if you had a 40 per cent deposit, it would be 60 per cent LTV

Compare mortgage rates at different loan-to-values with L&C*

Although they assess on individual affordability, mortgage lenders typically limit most people to borrowing roughly no more than 4.5 times their…