What’s the best mortgage for first-time buyers?
Our top tips for newbies looking for the right mortgage
Last updated on
Jan 30, 2026 7:03
Several types of mortgage could suit first-time buyers. And some mortgage deals are only for first-time buyers. Plus there are some schemes that give you a bit of a leg up.
We’ve explained the schemes, the different mortgage types and how to find the right deal for you. If you already know the type of deal you want, you can head straight to our comparison table.
About Habito
Habito is authorised and regulated by the Financial Conduct Authority. We’re a mortgage broker – that means we give mortgage advice and recommend products from a panel of lenders. We don’t set mortgage rates or decide who lenders accept, and we’re not part of any government scheme.
Lenders have different definitions of a first-time buyer. Generally, you’ll be considered one if you’ve never owned a home before, either in the UK or abroad.
But even if this is your first time buying a home, you probably won’t qualify for first-time buyer status if:
If you fall into the second category - where someone’s buying the property for you - there’s still a chance you could be treated as a first-time buyer by certain lenders.
Speaking to a mortgage broker, like Habito, can help you find the lenders whose definitions of “first-time buyer” match your situation. There are lots of excellent mortgage deals out there for first-time buyers, so asking a broker to help you to track them down could save you a hell of a lot of time.
You’ll come across several different mortgage types, and although fixed rate deals are the most popular, another type might suit you better depending on a few factors that we’ll cover.
Here’s an overview of the main mortgage types:
Read more about the different types of mortgages in our full guide.
Around half of first-time buyers get help from their family according to research by Savills (estate agent).
That could be topping up your deposit or help with the mortgage itself (or both, if you’re really lucky).
There are a few ways the Bank of Mum and Dad can be involved in your mortgage, and these have different legal and tax implications, and can affect the credit rating of everyone involved. So if you go for this, it’s important both you and they understand all the implications.
One option is a type of mortgage where someone helps you but doesn’t count as an owner of your property, meaning you can keep your status as a first-time buyer. Examples are:
The deals available to you will depend on:
To get started:
To see the sort of deals available for the amount you want to borrow, you can use our comparison tables. Or to get a more tailored list that takes into account more of your situation, chat with a mortgage expert like Habito.
When you’re considering mortgage deals, check out the overall cost including fees, and the monthly repayment amount - not just the interest rate.
If you’re thinking about a fixed rate deal, consider how many years you need payments to be fixed before you have to look for another deal. The next deal could end up being at a higher rate or a lower rate. Chatting with a mortgage broker could help you work through this.
Don’t forget there may be financial help available from your family if you need that - it’s worth a chat with them.
First-time buyers get several benefits. One of them is a free top-up for your deposit from the government, thanks to a special savings account called the lifetime ISA. You can open a lifetime ISA between the ages of 18 and 39 and use the money in it towards a deposit for your first home. Find out 8 benefits for first-time buyers in our full guide.
If you don’t have a huge deposit, it’s worth knowing about the Mortgage Guarantee Scheme. In July 2025, the UK government launched a permanent Mortgage Guarantee Scheme to get mortgage lenders to offer more mortgages for those with a lower deposit - 5% to 9% of the value of the property. The scheme insures lenders against certain losses if you default on your mortgage and they end up losing money when they sell your property.
There is such a thing as a no-deposit mortgage or a 100% mortgage, but it’s a rare beast, interest rates are typically high, and they tend to be guarantor mortgages.
Shared ownership can also help you get on the ladder. With these schemes, you buy part of a property and pay rent on the remaining part, usually to a developer or local housing authority. That means you only need a mortgage to cover the share that’s yours. You’ll need to be able to afford both the mortgage payments and the rent, and these costs can rise over time. Shared ownership can be complex, so it’s important to understand the long-term costs before committing.
To get some expert help in finding the best first-time buyer mortgage for you, chat with one of our team. We can access thousands of mortgage deals from a panel of over 90 banks and lenders, which covers most of the UK market but not every lender. And it’s free to chat with us.
Your home may be repossessed if you do not keep up repayments on your mortgage.
With a guarantor mortgage, you have an additional person added to your mortgage application who adds support, helping you to get approved
Here's what you need to know before you apply for a mortgage.

Thinking of buying your first home but not sure where to start? Here’s a simple, step-by-step guide to the process – from sorting your finances, to viewing properties, to getting the keys to your new home.

Habito specialises in helping you get the best mortgage or remortgage, all online, for free
