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.

First, do you count as a first-time buyer?

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:

  • You’re buying with someone else who already owns (or has previously owned) a home
  • The property is being bought for you by someone who already owns their own home, like a parent or family member
  • You’ve previously inherited a property – even if you never lived in it

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.

What’s the best type of mortgage for a first-time homebuyer?

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:

  • Fixed rate mortgages. This means your interest rate is frozen for a fixed amount of time, such 2 years, 3 years, 5 years or even 10 years. Many people choose this type if they need the reassurance of knowing what their payments are going to be each month.
  • Variable rate mortgages. With these, your interest rate could go up or down from month to month, which means you’ll need to be comfortable with potential changes to your budget.
  • Repayment mortgages. Most people go for these. With a repayment mortgage, you pay back both the money you’ve borrowed, and the interest on that amount, each month. At the end of the mortgage term, you’ll have paid off the entire mortgage. The interest rate can be fixed or variable.
  • Interest only mortgages. Your monthly payments only cover the interest and not the mortgage itself. That means your monthly payments tend to be lower than with a repayment mortgage, but at the end of your mortgage term, you’ll need to pay the entire loan back in one go. With an interest-only mortgage, you’ll need a separate plan to repay the full amount you borrowed at the end of the term. If that plan doesn’t work out, you could be forced to sell your home.

Read more about the different types of mortgages in our full guide.

Mortgages with family help

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:

  • Guarantor mortgages (also called “family-assisted” mortgages). Another person agrees to make your payments if you can’t make them. This “guarantor” doesn’t have any ownership of the property but steps in if you can’t pay. They typically need to have a good credit rating. If your guarantor has to step in, they’re legally responsible for your mortgage payments, which could affect their finances and credit rating. Find out more in our guarantor mortgage guide.
  • Joint borrower sole proprietor (JBSP) mortgages. With these, someone else is a “co-borrower” from the start. Their income helps you secure the mortgage you need. They’re jointly responsible for the monthly payments, but if you can cover them, they don’t have to contribute. This could be a good option for you if your income falls short of what you need to qualify for a deal but you can afford the monthly repayments. Because all borrowers are named on the mortgage, everyone is legally responsible for the full debt, even if only one person lives in the property. Find out more in our JBSP mortgages guide.
  • Offset mortgages. If your parents have some savings, they might be willing to put those into an “offset” account that’s linked to your mortgage and reduces the amount of interest you have to pay. Find out more in our offset mortgages guide.

How to choose the best first-time buyer mortgage

The deals available to you will depend on:

  • Your employment status - employed or self-employed
  • Your credit history - your track record of repaying loans and credit
  • Your monthly income and outgoings - your salary and bills determine what’s left for mortgage payments
  • How much you’ve got saved for a deposit - the more you have, the bigger choice of deals you’re likely to get
  • Whether you have some family backing or not

To get started:

  • Work out how much you can afford to borrow - our mortgage calculator can help
  • Start viewing properties priced in that ballpark. It’s also a good idea to get a mortgage in principle (MIP) at this stage as it shows estate agents that you’re a serious buyer. Get yours from Habito – it’s free!
  • Once you’ve found a property and had an offer accepted, it’s time to apply for a mortgage. You can see all the steps to this in our full guide to getting a mortgage.

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.

Schemes that can help

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.