We know things are hard for first time buyers in 2024. So we want to make it easier. We want to help by finding the best first time buyer mortgage rates right now so you can find the cheapest deals, know how much you can afford to borrow and how much a mortgage will cost you. So every month we’ll be showcasing the best deals for you, with input from the mortgage experts at L&C.

Best first time buyer mortgage rates in the UK April 2024 – Fixed rates

Once you know how much deposit you have (read on for advice if you’re not sure), you can look at the best first time buyer mortgage rates available for you. Here are the best first time buyer mortgage rates if you’re looking for a fixed deal.

40% deposit: Best rates on 60% mortgages

The best fixed first time buyer mortgage rate are usually available if you have a large deposit. Here are this month’s best first time buyer mortgage rates if you’ve got a 40% deposit and want a fixed deal.

2 year fixed rate mortgage

Lender	Initial rate	Fee
MPowered Mortgages	4.52%	£999
NatWest	4.64%	£1,495
Lloyds Bank	4.66%	£999

5 year fixed rate mortgage

Lender	Initial rate	Fee
AIB	4.09%	£200
NatWest	4.19%	£1,495
NatWest	4.24%	£995

The best first time buyer mortgage rates are changing fast. For the latest deals and fee-free mortgage advice speak to our partners at L&C.

25% deposit: Best rate on 75% mortgages

If you’ve got a 25% deposit, here are the best first time buyer mortgage rates available this month if you’re looking for a 2 year fixed rate mortgage or a 5 year fixed rate mortgage.

2 year fixed rate mortgage

Lender	Initial rate	Fee
MPowered Mortgages	4.57%	£999
Clydesdale Bank	4.72%	£1,662
The Cumberland	4.73%	£999

5 year fixed rate mortgage

Lender	Initial rate	Fee
AIB	4.29%	£200
NatWest	4.37%	£1,495
AIB	4.40%	£200

20% deposit: Best rates on 80% mortgages

While if you’ve got a 20% deposit and you’re looking for the best first time buyer mortgage rates, here are your options this month:

2 year fixed rate mortgages

Lender	Initial rate	Fee
Nationwide	4.89% (max LTV 85%)	£999
NatWest	4.89% (max LTV 85%)	£1,495
HSBC UK	4.92% (max LTV 85%)	£749

5 year fixed rate mortgages

Lender	Initial rate	Fee
AIB	4.40%	£200
NatWest	4.47%	£1,495
Clydesdale Bank	4.51%	£1,662

To talk through your options, get in touch with our fee-free mortgage brokers at L&C.

15% Deposit – Best 85% mortgages

If you’ve got a 15% deposit, here are the best first time buyer mortgage rates available this month if you’re looking for a 2 or 5 year fixed rate mortgage.

2 year fixed rate mortgages

Lender	Initial rate	Fee
Nationwide	4.89%	£999
NatWest	4.89%	£1,495
HSBC UK	4.92%	£749

5 year fixed rate mortgage

Lender	Initial rate	Fee
NatWest	4.48%	£1,495
Clydesdale Bank	4.51%	£1,662
The Cumberland	4.53%	£948

10% deposit – Best 90% mortgages

Meanwhile, if you’re buying a house and looking for the best first time buyer mortgage rates this month, here are the lowest mortgage rates if you’ve got a 10% deposit.

2 year fixed rate mortgages

Lender	Initial rate	Fee
The Cumberland	5.07%	£999
Coventry Building Society	5.09%	£999
Nationwide	5.14%	£999

5 year fixed rate mortgages

Lender	Initial rate	Fee
AIB	4.61%	£200
Clydesdale Bank	4.64%	£1,662
HSBC UK	4.65%	£499

For the best first time buyer mortgage rates and fee-free mortgage advice speak to our partners at L&C. Start online or give them a call today about your mortgage needs

5% Deposit – Best 95% mortgages

While if you’ve got a 5% deposit and you’re looking at the best first time buyer mortgage rates, here are the lowest rates on 2 and 5 year fixed rate mortgages.

2 year fixed rate mortgages

Lender	Initial rate	Fee
Halifax	5.39%	£1,099
The Co-operative Bank	5.46%	£749
Coventry Building Society	5.50%	£999

5 year fixed rate mortgages

Lender	Initial rate	Fee
Monmouthshire Building Society	4.90%	£879
Leeds Building Society	5.07%	£999
Nationwide	5.09%	£499

0% Deposit – Best 100% mortgages

The best rate on a 100% mortgage this month is Skipton Building Society’s Track Record 5 year fix at 5.45% – but it’s the only mortgage of its type available. For more details on how it works see our guide on 100% mortgages.

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Best first time buyer mortgage rates in the UK April 2024 – Variable rates

If you’re looking at first time buyer mortgage rates, here are the best rates on offer this month if you’re looking for a variable rate mortgage.

40% deposit: Best rates on 60% mortgages

When you’re looking for a first time buyer mortgage, the larger the deposit, the better the rate you can usually get. These are the best first time buyer mortgage rates this month if you have a 40% deposit.

2 year variable rate mortgage

Lender	Initial rate	Fees
Leek Building Society	4.99% (3.25% discount) Available up to 80% LTV	£995
Furness Building Society	5.19% (3.50% discount) Available up to 80% LTV	£1,019
Leek Building Society	5.36% (2.88% discount) Available up to 80% LTV	£95

5 year variable rate mortgage

Lender	Initial rate	Fee
Barclays	5.85% (Base + 0.60%)	£999
Earl Shilton	6.14% (2.25% discount) Max LTV 75%	£1,115
Barclays	6.25% (Base + 1.00%) Max LTV 85%	£999

25% deposit: Best rate on 75% mortgages

If you’ve got a 25% deposit, here are the best first time buyer mortgage rates available this month if you’re looking for a 2 year variable rate mortgage or a 5 year variable rate mortgage.

2 year variable rate mortgage

Lender	Initial rate	Fees
Leek Building Society	4.99% (3.25% discount) Available up to 80% LTV	£995
Furness Building Society	5.19% (3.50% discount) Available up to 80% LTV	£1,019
Leek Building Society	5.36% (2.88% discount) Available up to 80% LTV	£95

5 year variable rate mortgage

Lender	Initial rate	Fee
Earl Shilton	6.14% (2.25% discount)	£1,115
Barclays	6.25% (Base + 1.00%) Available up to 85% LTV	£999
Earl Shilton	6.34% (2.05% discount)	£1,115

For the best first time buyer mortgage rates and fee-free mortgage advice speak to our partners at L&C.

20% deposit: Best rates on 80% mortgages

While if you’ve got a 20% deposit and you’re looking for the best first time buyer mortgage rates, here are your options this month:

2 year variable rate mortgages

Lender	Initial rate	Fees
Leek Building Society	4.99% (3.25% discount)	£995
Furness Building Society	5.19% (3.50% discount)	£1,019
Leek Building Society	5.36% (2.88% discount)	£95

5 year variable rate mortgages

Lender	Initial rate	Fee
Barclays	6.25% (Base + 1.00%) Available up to 85% LTV	£999
Earl Shilton Building Society	6.54% (1.85% discount) Available up to 90% LTV	£1,014
Earl Shilton Building Society	6.89% (1.50% discount) Available up to 90% LTV	£1,014

15% Deposit – Best 85% mortgages

If you’ve got a 15% deposit, here are the best first time buyer mortgage rates available this month if you’re looking for a 2 or 5 year variable rate mortgage.

2 year variable rate mortgages

Lender	Initial rate	Fee
Furness Building Society	5.49% (3.20% discount) Available up to 90% LTV	£749
The Cambridge Building Society	5.74% (2.80% discount) Available up to 90% LTV	£474
Hinkley and Rugby Building Society	5.79% (2.25% discount) Available up to 90% LTV	£474

5 year variable rate mortgage

Lender	Initial rate	Fee
Barclays	6.25% (Base + 1.00%)	£999
Earl Shilton Building Society	6.54% (1.85% discount) Available up to 90% LTV	£1,014
Earl Shilton Building Society	6.89% (1.50% discount) Available up to 90% LTV	£1,014

10% deposit – Best 90% mortgages

Meanwhile, if you’re buying a house and looking for the best first time buyer mortgage rates this month, here are the lowest mortgage rates if you’ve got a 10% deposit.

2 year variable rate mortgages

Lender	Initial rate	Fee
Furness Building Society	5.49% (3.20% discount)	£749
The Cambridge Building Society	5.74% (2.80% discount)	£474
Hinckley and Rugby Building Society	5.79% (2.25% discount)	£999

5 year variable rate mortgages

Lender	Initial rate	Fee
Earl Shilton Building Society	6.54% (1.85% discount)	£1,014
Earl Shilton Building Society	6.89% (1.50% discount)	£1,014

5% Deposit – Best 95% mortgages

While if you’ve got a 5% deposit and you’re looking at the best first time buyer mortgage rates, here are the lowest rates on 2 and 5 year variable rate mortgages.

2 year variable rate mortgages

Lender	Initial rate	Fee
Furness Building Society	5.84% (2.85% discount)	£-250
The Cambridge Building Society	5.99% (2.55% discount)	£199
Beverley Building Society	6.34% (1.90% discount)	£2,264M

The best first time buyer mortgage rates are changing fast. For the latest deals and fee-free mortgage advice speak to our partners at L&C.

Best first time buyer mortgage rates April 2024

So what’s happening in the mortgage market in April 2024 for first time buyers? It’s a mixed bag this month. Santander and Coventry Building Society have cut rates on a number of fixed-rate products, while Accord Mortgages has increased its rates. And both HSBC and Barclays have cut rates on some mortgages but increased rates on others.

If you’re a first time buyer, it’s vital that take expert advice so that you’re fully informed so that you can make the best decision for you. And the first step is to speak to a fee-free mortgage broker, they’ll take you through the best first time buyer mortgage rates so you know what your options are.

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Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.

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Which is the best mortgage for first time buyers?

When you take out a mortgage, you don’t just need to look at best first time buyer mortgage rates, you’ll need to decide which type of mortgage to choose too.

• Fixed rate mortgages: When you take out a fixed rate mortgage, as the name suggests, the rate you’ll pay will be fixed for a set period of time, usually 2, 3 or 5 years but it can be longer. Many people getting on the property ladder think fixed rates are the best mortgage for first time buyers because they offer certainty of how much your mortgage payments will be each month. But while the amount you pay won’t increase if interest rates increase, it won’t fall either if interest rates fall.
• Tracker mortgages: A tracker mortgage tracks the Bank of England base rate, which means the amount you pay on your mortgage each month will go up or down if the base rate increases or decreases. If you choose this type of mortgage you should make sure you can afford the repayments if they were to increase.
• Discounted mortgages: These mortgage’s offer a discount on the lender’s standard variable rate for a fixed period – usually between two and five years. But if your lender changes its SVR, the amount you’ll pay will change.
• Offset mortgages: With an offset mortgage, you use a linked savings account to offset the amount you owe on your mortgage – this means instead of earning interest on your savings, you pay less interest on your mortgage. If you’re a first time buyer and you have a large chunk of savings you might be better off using these for your deposit. But your fee-free mortgage broker will talk you though it so help you make the best decision for you.
• Guarantor mortgages: These allow you to get a mortgage even if you have no deposit. A mortgage guarantor is someone – usually a parent, a relative or even a close friend – takes on some of the risk of the mortgage by acting as a guarantor. This usually involves them offering their savings or their home as security against the loan and committing to making the mortgage payments if the borrower defaults.
• 100% mortgages. Skipton Building Society’s 100% Track Record mortgage is a 5 year fixed rate mortgage available to those with a track record of renting. For more details on how it works see our guide on 100% mortgages.

First time buyer deposits

Just like with any mortgage, if you want the best first time buyer mortgage rates, having a bigger deposit usually helps. So while you’ll usually need at least a 5% deposit, although it is possible to get 1% deposit mortgages and 100% mortgages, the bigger your deposit, the better the rate you’re likely to get on a mortgage. According to Halifax, the average deposit first time buyers paid in 2023 was over £53,000. This is why so many first time buyers look for financial help – we have more about this later.

First time buyer deposit examples

Cost of property	Deposit %	How much deposit needed
£200,000	5%	£10,000
£200,000	10%	£20,000
£200,000	15%	£30,000

Check how much you can borrow. Our fee-free mortgage broker partners at L&C can let you know today – online or over the phone

First time buyer mortgage example

If you’re buying a £200,000 property and you have a 10% deposit to put down and take out The Cumberland’s 2 year fixed rate mortgage at 5.07%, borrowing £180,000, over 25 years, your monthly repayments will be around £1,060 for the first 2 years.

The amount you’ll pay once the 2 year deal ends will depend on whether you roll onto the lender’s standard variable rate or you take out a new deal. Plus it also has scheme fees of £999.

While if you’re looking for a variable rate mortgage for the same amount over 25 years and take out Furness Building Society’s 3.20% discount for 2 years which has an initial rate of 5.49%, your monthly payments will be around £1,104 (although this could increase or decrease during the initial term). Again, the amount you’ll pay once the 2 year deal ends will depend on whether you move to the lender’s standard variable rate or you take out a new deal. It has scheme fees of £749.

What is a first time buyer?

You’re typically a first time buyer if you’ve never owned a home previously, either in the UK or abroad.

How can I get a first time buyer mortgage?

Unless you’re lucky enough to have the cash to get on the property, getting a first time buyer mortgage will be essential to owning your own home. Here’s how to do it.

1. Check your credit file

When you apply for a mortgage, the lender will check your credit report – so make sure you do it first. Ensure all the information in your credit reports is correct as any mistakes may harm your chances of your mortgage application being accepted. And do what you can to boost your credit score too. Your credit score will be one factor in whether you get access to the best first time buyer mortgage rates on the market. For more information, read our guide 11 Tips to improve your credit score for a mortgage.

2. First time buyer deposit

If you’re a first time buyer, to get a mortgage to buy a house or a flat you’ll need a deposit. You’ll usually need at least a 5% deposit, but the bigger your deposit, the better the rate you’re likely to get on a mortgage. According to Halifax, the average deposit first time buyers paid in 2023 was over £53,000. This is why so many first time buyers look for financial help, often in the form of gifted deposits from family members, to help boost their savings and get a step on the property ladder.

Also, if you’re aged 18-39, check out Lifetime ISAs, these are for buying your first home or for your retirement. You can save up to £4,000 each tax year into your LISA and the government will give you a 25% bonus on your contributions, up to a maximum of £1,000 per year. They’re not right for everyone though, find out more in our guide on Best Lifetime ISAs

3. How much can I borrow? Get expert advice

The next step is to find out how much you can borrow. Lenders will typically will lend 4 to 4.5 times your salary depending on your outgoings and credit history. But as well as strict loan-to-income limits, lenders will also ‘stress test’ your finances according to their risk appetite. So it’s essential that you’re fully informed and the quickest and easiest way to do this is to speak to a fee-free broker. They’ll cut through the jargon and explain everything you need to know – plus they’ll do the legwork and search for the best first time buyer mortgage rates for you too.

Schemes available to help first-time buyers in 2024

When buying your first home, there are a number of schemes that can help you get on the property ladder in 2024.

• Lifetime ISA: A Lifetime ISA, or LISA, is a type of account designed to help you save towards a deposit on your first home.  You can save up to £4,000 a year and the government will top this up with a 25% bonus. Find out more about the Lifetime ISA.
• Deposit Unlock: With Deposit Unlock, you can buy a new build home from a participating house builder with a 5% deposit with a mortgage from a participating lender. Find out more in our guide on Deposit Unlock.
• Shared Ownership: With Shared Ownership, you buy a share of a property (between 10%-75%) and pay rent on the rest. So you’ll need a smaller mortgage and smaller deposit than if you buy on the open market. And you could increase your ownership stake in the property over time. These schemes are provided by housing associations or private developers but details, costs and restrictions vary by provider so research each one on its individual merits and read the small print of your lease. Read more about the pros and cons of the shared ownership scheme.
• First Homes: The government’s First Homes scheme works by offering newly built homes to local first time buyers, including keyworkers, with a discount of at least 30% compared to the market value of equivalent properties. This discount stays on the First Home forever. This means that, every time the property is sold, the new buyer benefits from the discount. But the eligibility criteria is different for different local authority areas and the number of First Homes being built is extremely limited. Read more in our guide to the First Homes Scheme.
• Help to Buy Equity Loan scheme (2021-2023) This scheme let you buy a new build home with a 5% deposit. Those using the scheme could borrow an equity loan from the government of up to 20% of the property’s value, or up to 40% if the property was in London. This was interest-free for the first five years. And you then needed to get a mortgage for the rest. But this scheme closed on 31 March 2023. See alternatives to Help to Buy.

When should I apply for a first-time mortgage? 

While you can’t make a full mortgage application until you’ve had an offer accepted on a property, it’s advisable to start your mortgage research as soon as possible. You’ll find out about the best first time buyer mortgage rates and find out what your budget is plus you’ll be able to get a Mortgage Agreement in Principle, also known as Decision in Principle. This is a statement from a lender saying the amount it would lend you ‘in principle’ based on information you have provided and they can be useful to show to estate agents when house-hunting.

And if you still need some more time to save up your deposit before you can buy your first home, speaking to an expert mortgage broker should help you understand how far off you are from being able to get on the property ladder.

How can I compare the best first time buyer mortgage rates?

The easiest way to find the best first time buyer mortgage rates and compare them is to speak to a fee-free mortgage broker. They’ll search the market for you and find you the best first time buyer mortgage. Compare today’s best mortgage deals and speak to a fee free mortgage advisor today.

Mortgage Finder

Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.

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What other costs do I budget for?

Your deposit is likely to be your biggest cost when buying a house but there are other costs you’ll need to budget for when you’re buying your first home such as conveyancing fees and getting a survey done. And depending on the value of the property you may need to pay first time buyer stamp duty too. For more information, read our guide on the Costs of buying a house.