What is a first time buyer mortgage and how does it work

A first time buyer mortgage is designed for individuals purchasing their first home, often offering lower deposits, better rates, and incentives like cashback or fee reductions.

How much deposit is required for a first time buyer mortgage in the UK

Most lenders offer options with 5% to 10% deposits, especially through government-backed schemes like mortgage guarantees.

Are there any government schemes available for first time buyers

Yes, schemes like Lifetime ISA, Shared Ownership, and First Homes Scheme provide financial support and make buying more affordable.

Do first time buyers pay stamp duty in the UK

First time buyers usually pay no stamp duty on properties up to £425,000 in England and Northern Ireland, depending on eligibility.

Can I get help from a mortgage advisor as a first time buyer

Yes, mortgage advisors can compare deals, handle paperwork, and guide you through the entire process to secure the best mortgage option.

Discover Hidden Incentives of First Time Buyer Mortgage

In 2026, first time buyer mortgage rates are expected to stabilise, putting first-time buyers in a strong position to secure loans. The first time buyers mortgage offers exclusive benefits beyond just lower interest rates to help new homeowners make a smooth transition. Key perks of mortgages for first time buyers include financial benefits such as cash back, lower initial costs and legal fees, and lower deposits. Free property valuations, government-backed incentives and reduced stamp duty and tax relief also aid in home affordability.

First Time Buyer Mortgage Financial Perks

Cash-Back

Many lenders offer cash back incentives to help first time buyers feel supported in their mortgage journey. Once the mortgage is settled, a one-off lump sum cash is deposited in your account, which can be used for renovations, moving expenses or furniture.

Initial Costs Savings

First time buyer mortgage offers lower interest rates and lower monthly housing payments, allowing you to build equity, compared to renting.

Lower Legal or Conveyancing Fees

A few hundred thousand pounds provide a welcome cushion at the initial stage of homeownership to help meet unexpected expenses, such as first time buyer mortgage broker fees, which can typically range from £800 to £1600 + VAT.

Reduced/No-Fee Mortgages

Many lenders offer zero fee or significantly low arrangement or booking fees, which can help you save up to £1000-£1500. Some specialised fee-free first time buyer mortgage advisors can guide you through the process, saving the brokers’ costs.

The most popular property type for mortgages for first time buyers includes semi-detached 36%, terrace houses 32%, apartment 19% and detached 13%.

Free Property Valuations

Securing a mortgage first time buyer in 2026 is easier than you think. Some lenders offer free, basic property valuations as part of their first-time buyer’s package. This helps reduce the initial costs of applying for the FTB mortgage.
Waiving hundreds of pounds of fees at this crucial stage of your home-buying process helps you feel supported and move confidently with the mortgage process.
Some lenders also offer free conveyance and reduced arrangement fees to reduce the financial burden at a time when your budget is tight, i.e., when securing a mortgage first time buyer.

Around 70% of new mortgage customers are first-time buyers, and half of them are over 30 years old. The number of 95% LTV deals is at its highest since 2008.

Government Incentives

The UK government offers a range of incentives and support programmes to help you move up the property ladder and become a proud homeowner.

A Lifetime ISA allows you to save up to £4000 per year, and receive a 25% government bonus towards a home up to £450,000.
First Home Schemes help local first time buyers mortgage and key workers purchase new-build homes at a reduced market price (up to 30% to 50% lower).
Shared Ownership lets you purchase a share of the property (10% to 75%) if you can not afford to pay the full amount or have a deposit. You have the option to buy more shares over time, all while paying rent on the remaining portion.

Data from the government’s English Housing Survey shows an increase in the number of solo buyers, with more than 47% of FTBs buying alone.

Low Deposits

Gain access to 95% mortgages (5% deposit) or 90% mortgages (10% deposit) via the government-backed Mortgage Guarantees Scheme (Freedom to Buy). Buyers can secure 90% to 95% LTV (loan-to-value) commercial mortgages easily.

Reduced Stamp Duty or Land Tax Relief

First time mortgage buyers in England and Northern Ireland often pay no SDLT (stamp duty land tax) on homes up to £425,000, helping save a substantial amount of money, compared to other products and offers.

First time buyer mortgage advisors simplify the process by assessing your home affordability. They search the market for the best rates and handle complex documentation, resulting in a stress-free home-buying experience.

The BBC reports that first-time borrowers are borrowing mortgages that last an average of 31 years. The average term has risen as the affordability of homes remains a stretch.

Conclusion

Navigating the mortgage market seems challenging, especially for first time home buyers. Understanding the hidden benefits and the support available can help them make the right move for their dream home ownership. First time buyer mortgage advisors can streamline the home-buying process by providing expert guidance and tailored advice. Book a consultation now and let your first time buyer mortgage broker handle the complex paperwork and process.

Ready to secure your first time buyer mortgage? Contact Mayfair Commercial Mortgages today on 07869 552259 or email info@mayfaircommercialmortgages.co.uk to speak with an expert and find the best deal tailored to your needs

FAQs (Frequently Asked Questions)

What are cashback deals?

Some lenders offer cash back upon completion, providing a lump sum amount of money that can be used for initial costs like moving expenses, furniture or home improvements.

What are free valuations and legal fees?

Lenders may offer free property valuations or contribute towards your legal and conveyancing fees, reducing the immediate financial burden.

Do I have to pay back the valuation fees or legal incentives?

Generally, no. These are incentives meant to lower your immediate out-of-pocket costs. These are usually provided by the lenders to attract your business, but it’s important to check the terms if you plan to switch lenders shortly after.

What is stamp duty relief?

In many areas, first-time buyers pay no stamp duty on properties up to a certain threshold (e.g £425,000), making them exempt from a tax that home movers have to pay.

Can I use cashback for my down payment?

Usually, the cash back is paid after the sale is finalised, so it can not be used towards your initial down payment. It is primarily meant for post-purchase costs.

5 Hidden Benefits of a First Time Buyer Mortgage You Didn’t Know Existed