First-Time Buyer Mortgage Guide 2026
Buying your first home is one of the biggest financial decisions you will ever make. This guide walks you through every step.
How Much Deposit Do You Need?
- 5% deposit: available but highest interest rates
- 10% deposit: much better rates
- 15 to 20% deposit: access to the best deals
On a £200,000 property, a 10% deposit equals £20,000.
Government Schemes
Lifetime ISA: Save up to £4,000 per year, government adds 25% bonus up to £1,000. Must be used for a property under £450,000. Must open aged 18 to 39. A couple saving the maximum for five years accumulates £40,000 plus £10,000 in bonuses.
Shared Ownership: Buy 10% to 75% of a property and pay rent on the rest. Staircase up over time.
Mortgage Guarantee Scheme: Government backs 95% LTV mortgages, extended into 2026.
Mortgage Types
| Type | Rate | Best For |
|---|---|---|
| 2-year fix | 4.2–4.6% | Flexibility |
| 5-year fix | 4.0–4.4% | Stability |
| Tracker | Base rate + margin | Rate falls |
For most first-time buyers, a five-year fixed rate repayment mortgage is the right choice.
Improving Approval Chances
Check your credit report, pay down existing debts, avoid new credit applications six months before applying, and get on the electoral roll.
Always speak to a whole-of-market mortgage broker before making any decisions.