First time buyer mortgage deals

As a first time buyer, deciding which mortgage product is most suitable for you is one of the most important financial decisions you will ever make.

Selecting the best value home loan can mean a difference of thousands of pounds in the years to come. It certainly pays to shop around for the best first time buyer mortgage rates.

Although 100% deals are no longer available, some lenders require only a 10% or 5% deposit. If you can put down more you will have access to better deals. As independent mortgage advisors we have access to all the products from all the banks, building societies and specialist lenders in the UK.

Our service is designed to save you time and money. With so many things to consider, redemption penalties, discount mortgages, variable and fixed rate products, our advisors are on hand to guide you through the financial maze.

Our independence means we are not part of a bank or building society and have no vested interest in recommending one mortgage over another. Our aim is to find something right for you.

Best first time buyer mortgages

LenderRateAPRTypeDurationMax LTVRedemptionFees
Vernon BS 2.94% reverting to 4.70% 4.4% Discounted Variable3 years95%1st 3 yrs None
Vernon BS 4.15% reverting to 4.70% 4.6% Fixed30/11/202295%To 30/11/2022 Arrangement £100
Yorkshire BS 3.39% reverting to 4.74% 4.6% Fixed29/02/202095%To 29/02/2020 Completion £995
Chelsea BS 3.50% reverting to 4.74% 4.7% Fixed30/11/201995%To 30/11/2019 Arrangement £495
Hanley Economic BS 2.85% reverting to 4.94% 4.8% Discounted Variable2 years95%1st 2 yrs Booking £250
Saffron BS 3.67% reverting to 5.39% 4.9% Fixed31/12/202295%To 31/12/2022 None
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Yorkshire Bank 2.79% reverting to 4.70% 4.0% Fixed31/12/202290%1st 5 yrs Arrangement £999
Clydesdale Bank 1.99% reverting to 4.70% 4.2% Fixed31/12/201985%1st 2 yrs None
HSBC 1.94% reverting to 3.69% 3.5% Fixed31/12/201990%To 31/12/2019 Booking £999
Royal Bank of Scotland 3.68% reverting to 3.75% 3.8% Fixed28/02/202385%To 28/02/2023 None
first direct 2.79% reverting to 3.69% 3.4% Fixed5 years90%1st 5 yrs Booking £725
Nationwide BS 2.49% reverting to 3.74% 3.6% Fixed3 years90%1st 3 yrs Reservation £999
Post Office Money® 1.68% reverting to 4.24% 3.8% Fixed30/11/201985%To 30/11/2019 Arrangement £295
NatWest 2.51% reverting to 3.75% 3.7% Fixed29/02/202090%To 29/02/2020 Booking £995

Rates quoted above as published by MoneyFacts

Get that first foothold on the ladder

When average house prices dropped by 21% between the peak of the market in 2007 and the trough in 2009, one group of people quietly celebrated.

Potential first time buyers finally saw how prices moving within their reach, after a years of boom that had made it almost impossible for many to get that first foothold onto the ladder.

Unfortunately it wasn't all good news, because at the same time lenders also became far stricter about what they would lend and to whom. In other words it became much more difficult to get a mortgage and the main barrier was the level of deposit required.

However, lenders have begun to compete for first time buyer business again and deals are slowly but surely becoming more competitive.

Although it is certainly not plain sailing, schemes aimed at helping more people onto the property ladder are proving a lifeline for those who could not otherwise afford to buy their first home.

In general, lenders will still only offer to lend you up to 90% of a property's value. So if you want to buy a place worth £200,000 you will usually need to put down at least £20,000 - a 10% deposit.

This is clearly a lot of money for many, particularly those who live in an expensive area. For example, according to Nationwide, the average price of a property in London for the first three months of 2011 was £286,658, meaning you would need to put down a payment of at least £28,655 in order to get a mortgage.

Added to this is the fact that interest rates are highest for those who can only find a 10% deposit. Lenders resever their best deals for borrowers with larger deposits, so you pay a premium for having a small deposit.

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