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        Updated: May 15, 2023

        Best Mortgage Rates For First-Time Buyers Compared

        Mortgage rates for first-time buyers could determine your mortgage payments, and therefore personal finances, for many years to come. Here’s what you need to know.

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        We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects. Ask us a question and we'll get the best expert to help.

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        Pete Mugleston

        Author: Pete Mugleston - Mortgage Expert, MD

        Updated: May 15, 2023

        If you’re looking at getting a mortgage for your first ever home, it can be hard to know where to begin when it comes to what interest rates you should expect to be paying.

        Here we outline everything you need to know about what your first time mortgage rates might look like during a tumultuous time in the economy, and what’s out there if you don’t have a substantial deposit to put down.

        Take a look at our rates tables here for an illustration of some of the best interest rates deals currently available for first-time buyers.

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        Looking for more rates and deals?

        We can match you with a mortgage broker who can provide you with up-to-date bespoke rates and deals from across the entire market and help you secure the best ones available.

        Last updated August 2023

        The rates quoted above were correct at the time of writing (April 2023) and are subject to change at any time at the lender’s discretion. Speaking to a mortgage broker is the best way to keep track of the rates available at any given time.

        Do first-time buyers qualify for the best mortgage deals?

        Unless you’ve manoeuvred yourself into a very strong position as a potential borrower, such as having a healthy deposit to put down, a generous and stable income, and a clear credit history, it is less likely that lenders will reserve their best rates for first-time buyers.

        This is because mortgage providers want the reassurance that you can function well with a loan of this magnitude and commitment, and unless they have previous behaviour to base this on, it can be tricky to prove yourself as a sure bet.

        This is where the help and guidance of a mortgage expert can prove invaluable – they’ll be able to identify the right lenders who tend to be more favourable towards first-time buyers and offer the most attractive interest rate deals.

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        Maximise your chance of approval with specialist advice from a mortgage expert.

        How a broker can help you find the best interest-rate deals for first-time buyers

        Working with an advisor who has experience of securing mortgages for first time buyers will open up corners of the market that are hidden from sight from the average applicant. This brings more deals to the table and potentially better rates than will benefit you for years to come.

        As well as greater access to mortgages, a good broker will also have a strong understanding of what the current economic situation is, how each lender is reacting accordingly, and help you prepare your application so you get the approval you need – first time!

        If you get in touch we’ll arrange for a mortgage broker we work with, who has experience helping first-time buyers get the mortgage they need, to contact you straight away.

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        Best mortgages for first-time buyers with a low deposit

        While the chances of securing a mortgage deal if you’re a first time buyer with no deposit is almost impossible at the time of writing, there may be some lenders out there who might still stretch to a 5% or 10% deposit mortgage for particular applicants.

        Don’t despair if you are struggling to gather a hefty deposit at a time when finances are stretched though.

        There are a few options out there to consider that are focused on helping first-time buyers without lots of capital behind them:

        • Guarantor mortgages: This is when a family member is willing to provide collateral should you default on your mortgage, which offsets the risks for a lender. At the time of writing there are only 17 lenders who are open to these, including Scottish Building Society, Vernon Building Society and Progressive Building Society, but they do come with their own strict eligibility and terms.
        • Lifetime ISA / Help to Buy ISA: A government-backed product, which gives you a 25% top-up on your savings to help you reach a healthy deposit amount.
        • First Homes: Another government scheme that gives first-time buyers a 30-50% discount on new build properties to boost the affordable homes quota.
        • Shared ownership: First-time buyers qualify to take advantage of a housing association-implemented, government-approved scheme, which involves part-renting and part-owning your home to begin with, with the aim of owning it outright eventually.
        • Right to Buy / Right to Acquire: If you’re a long-term tenant in a council or public sector-owned property and would like to buy your home, you might qualify for a discount via this arrangement.

        Why Use Online Money Advisor

        If you’re determined to get a foot on the property ladder and won’t be swayed by the current challenges in the economy, then that’s where we can help! Our unique broker-matching service is designed to assign you with a mortgage broker who is a perfect fit for your specific needs.

        Contact us today for a free impartial consultation so we can match you with a five-star rated broker best placed to provide the right advice on your mortgage requirements. You can either call us on 0808 189 0463 or make an online enquiry.

        Ask a quick question

        We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects. Ask us a question and we'll get the best expert to help.

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        Pete Mugleston

        Pete Mugleston

        Mortgage Expert, MD

        About the author

        Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

        Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

        FCA Disclaimer

        *Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

        Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.