Find the Best Mortgage Deals for First-Time Buyers

Buying your first home should be fun – not frightening. It’s easy to see why some people can feel overwhelmed though.

There are a lot of different terms thrown at you from the second you start looking at mortgages – repayment mortgage, fixed rate, standard variable rate, etc. - not to mention the fact that you might not know much about the property-buying process in general.

You don’t have to figure it all out by yourself. Not only do we find you the best mortgage deal for your situation, we explain the different mortgage options available to you as a first-time buyer and assist you at every stage of your homebuying journey.

Mortgage Help for First-Time Buyers

There are a few things to understand before we get started.

How Mortgages Work

  • A mortgage is a loan you take out with a lender for a number of years
  • The length of time over which you have a mortgage is called your “mortgage term”
  • Mortgage terms can be anywhere between 5 and 40 years
  • A mortgage is a type of secured loan, which means it’s secured against a property - usually the property you want to buy with the mortgage
  • Using a property as security for a loan means that the lender can repossess it if you don’t keep up the mortgage payments
  • To take out mortgage, you must put down a mortgage deposit of at least 5% of the purchase price – the mortgage itself makes up the rest

About Mortgage Interest Rates

  • When you take out a mortgage, you’re given an introductory interest rate for the first few years – typically between 2 – 5 years
  • A popular kind of interest rate for first-time buyer mortgages is a fixed rate, which is where interest is charged at a set rate for a certain period.  Fixed rates are particularly good for those who like to budget
  • After the introductory period ends, you’re transferred onto your lender’s SVR (standard variable rate), which is the interest rate they set themselves
    • The lender’s SVR is normally higher than the introductory rate, so you would often remortgage onto a new product with a new lender when your introductory deal ends or take a new product with your existing lender

Paying Back Your Mortgage

  • You pay back your mortgage with interest
  • There are 2 main types of mortgage which determine how you pay the lender - repayment and interest-only:
    • With a repayment mortgage, you pay back a bit of the outstanding mortgage balance – i.e. the amount you borrowed -  each month alongside interest payments
    • With an interest-only mortgage, you only make interest payments each month and repay the full mortgage at the end of the mortgage term

Keep reading to compare the best mortgage deals for first-time buyers that are currently on the market, find information on the homebuying process and for answers to some of your main FAQS.

Or, see our First-Time Buyer’s Guide if you need a little more help understanding mortgages and how they work for first-time buyers.

You can also learn about the different types of mortgages and interest rates in our guide.

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Compare First-Time Buyer Mortgage Rates

Use our free best buy tool to compare the best mortgage rates for first-time buyers.

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We suggest you use our ‘True Cost Comparison’ filter. This allows you to accurately understand how different mortgages compare by ordering results based on the total cost over a ‘deal period’, such as a two, or five-year fixed rate mortgage.

Some low interest rate deals might seem attractive, but if fees are higher they might not be the best value for you. When comparing mortgage deals our true cost comparison factors the lender fees over the length of the deal as well as your monthly mortgage payments.

For example, if your repayments are £2,000 per month on a two-year fixed-rate mortgage, plus £500 in lender fees, the total cost of the deal is £48,500.

We've found 7 first-time buyer mortgage deals that match your search

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Scheme ID 5610
Initial rate 2.74% then 4.74% (variable) ?
Monthly repayments £ 876 ?
Type/Duration Variable ?
Scheme fees £210 ?
Cost comparison £21,222 ?

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 100%
Overpayments allowed? Yes
Early Repayment charges £100, plus (1% in year 1, 0.5% in year 2)

Other info

Exit fees £125
Basic legals £0

Representative example: A mortgage of £190,000 payable over 25 years on a repayment basis, initially on a variable rate for 2 years at 2.74%, and then on a variable rate for 23 years at 4.74%. This would require 24 payments of £875.52 and 276 payments of £1,066.93. The total amount payable would be £315,820 made up of the loan amount plus interest (£125,610) and fees (£335 which includes exit fees of £125). The overall cost for comparison is 4.48% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 5611
Initial rate 2.74% then 4.74% (variable) ?
Monthly repayments £ 876 ?
Type/Duration Variable ?
Scheme fees £210 ?
Cost comparison £21,222 ?

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 100%
Overpayments allowed? Yes
Early Repayment charges £100, plus (1% in year 1, 0.5% in year 2)

Other info

Exit fees £125
Basic legals £0

Representative example: A mortgage of £190,000 payable over 25 years on a repayment basis, initially on a variable rate for 2 years at 2.74%, and then on a variable rate for 23 years at 4.74%. This would require 24 payments of £875.52 and 276 payments of £1,066.93. The total amount payable would be £315,820 made up of the loan amount plus interest (£125,610) and fees (£335 which includes exit fees of £125). The overall cost for comparison is 4.48% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 22598
Initial rate 3.29% then 5.14% (variable) ?
Monthly repayments £ 930 ?
Type/Duration Variable ?
Scheme fees £290 ?
Cost comparison £22,610 ?

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 95%
Overpayments allowed? Yes
Early Repayment charges £120, plus (3% in year 1, 2% in year 2)

Other info

Exit fees £120
Basic legals £0

Representative example: A mortgage of £190,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years at 3.29%, and then on a variable rate for 23 years at 5.14%. This would require 24 payments of £930.02 and 276 payments of £1,112.46. The total amount payable would be £329,749 made up of the loan amount plus interest (£139,459) and fees (£410 which includes exit fees of £120). The overall cost for comparison is 4.92% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 5613
Initial rate 3.39% then 4.74% (variable) ?
Monthly repayments £ 940 ?
Type/Duration Variable ?
Scheme fees £1,060 ?
Cost comparison £23,620 ?

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 100%
Overpayments allowed? Yes
Early Repayment charges £100, plus (2% until 30-11-21, 1% until 30-11-22)

Other info

Exit fees £125
Basic legals £0

Representative example: A mortgage of £190,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years and 3 months at 3.39%, and then on a variable rate for 22 years and 9 months at 4.74%. This would require 27 payments of £940.01 and 273 payments of £1,070.93. The total amount payable would be £318,929 made up of the loan amount plus interest (£127,869) and fees (£1,185 which includes exit fees of £125). The overall cost for comparison is 4.62% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 5614
Initial rate 3.39% then 4.74% (variable) ?
Monthly repayments £ 940 ?
Type/Duration Variable ?
Scheme fees £1,060 ?
Cost comparison £23,620 ?

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 100%
Overpayments allowed? Yes
Early Repayment charges £100, plus (2% until 30-11-21, 1% until 30-11-22)

Other info

Exit fees £125
Basic legals £0

Representative example: A mortgage of £190,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years and 3 months at 3.39%, and then on a variable rate for 22 years and 9 months at 4.74%. This would require 27 payments of £940.01 and 273 payments of £1,070.93. The total amount payable would be £318,929 made up of the loan amount plus interest (£127,869) and fees (£1,185 which includes exit fees of £125). The overall cost for comparison is 4.62% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 17488
Rate 3.39% ?
Monthly repayments £ 940 ?
Type/Duration Variable ?
Scheme fees £275 ?
Cost comparison £22,835 ?

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 100%
Overpayments allowed? Yes
Early Repayment charges Not Applicable

Other info

Exit fees £100
Basic legals £0

Representative example: A mortgage of £190,000 payable over 25 years on a repayment basis, on a variable rate for 25 years at 3.3900000000000006%. This would require 300 payments of £940.01. The total amount payable would be £282,378 made up of the loan amount plus interest (£92,103) and fees (£375 which includes exit fees of £100). The overall cost for comparison is 3.46% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 12200
Initial rate 4.99% then 4.09% (variable) ?
Monthly repayments £ 1,110 ?
Type/Duration Variable ?
Scheme fees £954 ?
Cost comparison £27,585 ?

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 95%
Overpayments allowed? Yes
Early Repayment charges Not Applicable

Other info

Exit fees £20
Basic legals £0

Representative example: A mortgage of £190,000 payable over 25 years on a repayment basis, initially on a fixed rate for 1 year and 7 months at 4.99%, and then on a tracker rate for 23 years and 5 months at 4.09%. This would require 19 payments of £1,109.61 and 281 payments of £1,017.03. The total amount payable would be £307,842 made up of the loan amount plus interest (£116,888) and fees (£974 which includes exit fees of £20). The overall cost for comparison is 4.35% APRC representative.

0344 346 3672 or Enquire now

How Can John Charcol Help First-Time Buyers?

We Take Care of Everything

With over 45 years of service, we've seen it all. We can save you money, time and make buying your property easy.

We're Highly Recommended

We have over 1,500 5* reviews on reviews.co.uk, so you can feel confident that your mortgage is in the right hands.

We Give Personal, Expert Advice

We work around your schedule to help you arrange a mortgage that suits your circumstances, no matter how complex.

Process for Buying a Home

1. First Conversation with Adviser

When you phone us, you can either arrange a phone appointment with your adviser or a face-to-face meeting – whatever suits you. Your adviser will ask you some questions then go away and find you the best deal for your circumstances and future needs. They’ll organise a follow up during which they’ll present you with what they’ve found.

2. Decision in Principle

Once you’re happy with your adviser's recommendation, they’ll go about securing your DIP (Decision in Principle) - which is basically a promise from the lender that they’ll loan you money on the condition that the information you’ve provided is correct and subject to a valuation of the property.

3. Offer on Property

After you’ve secured a DIP (Decision in Principle), you’ll be in a great position to make an offer on a property. Sellers like DIPs. They show you can afford the purchase. What’s more, the fact that you’ve already started preparing for the transaction highlights to them that you’re serious in your intention to buy.

4. Pre-Application and Submission

Following the acceptance of your offer, we’ll send you some information which explains all the documents we need to submit to the lender. You’ll be assigned a client relationship manager who’ll check and submit certified copies of your documents; they’ll liaise with both you and the lender. Your adviser will then submit the fully packaged mortgage application.

5. Lender Underwriting and Valuation

The lender will underwrite your application; this basically means they’ll verify that the information you’ve provided is correct and review all your documents for themselves. They’ll also instruct a valuation for their purposes on the property you want to buy to make sure there are no significant problems with it.

6. Mortgage Offer

If the lender is happy with everything they’ve found, they’ll send you a mortgage offer. They’ll also send us a copy.

7. Conveyancing

After you’ve accepted your mortgage offer, you’ll go through the legal part of the process, known as conveyancing. This is where the solicitors/conveyancers draw up contracts and organise the actual, legal purchase of the property. You’ll also need to arrange buildings insurance at this stage, making sure it’s in place from exchange.

8. Exchange and Completion

Once everything is in place, your conveyancer/solicitor will exchange contracts with the seller’s conveyancer/solicitor. It’s at this point that you put down your deposit and are legally bound to buy the property. You’ll lose your deposit if you pull out after exchange. The purchase completes when money is transferred on an agreed-upon date. This is when you get the keys to your new home.

JC Legal

With JC Legal, John Charcol can refer you to a solicitor who’ll manage the conveyancing part of the process. We choose from a carefully selected panel of conveyancers and solicitors, giving you access to a variety of quotes, services and options.

Learn More

Concierge 

We can help you move into your property, set up utilities, register for Council Tax and more with our Concierge Service – available through Just Move In. They organise everything for you, saving most people around £300 a year and up to 8 hours of hassle.

Learn More

Insurance

You'll need buildings insurance in place from exchange. We can find you buildings and contents insurance through our partnership with Legal & General.

Learn More

Protection

We can organise bespoke life assurances for you by selecting from our superb panel of providers. The best part? We charge no arrangement fees for this service.

Learn More

First-Time Buyer FAQs

Can I Get a Mortgage as a First-Time Buyer with Bad Credit?

It’ll be a lot harder to get a mortgage as a first-time buyer with no credit or a bad credit history unless you have a large deposit. There are ways you can improve your credit score and overall profile though.

Can I Get an Interest-Only Mortgage as a First-Time Buyer?

It is possible to get an interest-only residential mortgage as a first-time buyer, but you must be able to prove how you’ll repay the outstanding mortgage balance at the end of the mortgage term. Also, you’ll need to put down at least a 25% deposit.

How Much in Mortgage Deposit Do I Need to Buy My First Home?

The minimum deposit you need for a mortgage is 5%. However, there is a product called a “family springboard mortgage”. With a family springboard mortgage, you can take out a mortgage that’s up to 100% of the property’s purchase price. At the same time, a family member opens a savings account with the lender that’s linked to the mortgage. The family member will then put at least 10% of the purchase price into this savings account as security on the mortgage, thereby essentially providing a deposit.

Several lenders offer similar mortgages under different names.

Are There Any 0% Deposit Mortgages for First-Time Buyers?

The minimum deposit you need for a mortgage is 5%. However, there is a product called a “family springboard mortgage”. With a family springboard mortgage, you can take out a mortgage that’s up to 100% of the property’s purchase price. At the same time, a family member opens a savings account with the lender that’s linked to the mortgage. The family member will then put at least 10% of the purchase price into this savings account as security on the mortgage, thereby essentially providing a deposit.

Several lenders offer similar mortgages under different names.

Do Any Lenders Offer 80% or 90% Mortgages to First-Time Buyers?

Lenders do offer products at 80% or 90% LTV (loan-to-value) to first time buyers as well as all other homebuyers.   

Do I Qualify as a First-Time Homebuyer?

To qualify as a first-time buyer, you must have never acquired a major interest in a residential property or land in the UK or anywhere else in the world. We explain what it means to be a first-time buyer and the benefits in our First-Time Buyer’s Guide.

Does Being a First-Time Homebuyer Affect My Mortgage?

In the past there were special products with extra incentives for first-time buyers. Nowadays, lenders tend to offer their best products to all borrowers, so don’t limit yourself to “first-time buyer products” only.

Who Are the Best Mortgage Lenders for First-Time Buyers?

No one lender is the ultimate first-time buyer mortgage provider. Lenders offer all kinds of products and rates. What suits you best will depend on your situation and needs. If you’re not sure what you’re looking for, give us a no obligation call and speak to an adviser on 03304 332 927.

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