# First-Time Buyer Mortgages

> How mortgages work for first-time buyers, the government schemes available in 2026, and the costs to plan for beyond the deposit.

Canonical page: [/mortgages/first-time-buyer-mortgages](/mortgages/first-time-buyer-mortgages/) · Last reviewed: 2026-08-22

Buying your first home usually means taking out a mortgage — a long-term loan secured against the property. Here is how the process works and the help that may be available.

## Key information

- A mortgage is a loan secured against your home, usually repaid over 25 to 40 years
- You normally need a deposit of at least 5% of the property price
- Several government schemes can help first-time buyers, though each has strict conditions
- This is general information, not mortgage advice — a regulated broker or lender can advise on your situation

## How a mortgage works

A mortgage lets you borrow most of the cost of a home and repay it, with interest, over a long term — commonly 25 years, though longer terms are available. The loan is secured against the property, which means the lender can repossess and sell the home if you fall seriously behind on payments.

The share of the price you borrow compared with the value of the property is called the loan-to-value, or LTV. A larger deposit means [a lower LTV](/mortgages/mortgage-deposits#how-much-you-need), which usually gives you access to better interest rates. Most repayment mortgages combine interest and capital so the balance reduces to zero by the end of the term.

## Help for first-time buyers

Several schemes are designed to help people onto the property ladder. Each has its own eligibility rules and limits, and availability can change, so always check the current details on the official pages before relying on any scheme.

- Mortgage Guarantee Scheme — a permanent scheme relaunched in July 2025 that encourages lenders to offer 95% loan-to-value mortgages, so you can buy with a 5% deposit, on properties up to £600,000
- Lifetime ISA (LISA) — savers aged 18 to 39 get a 25% government bonus, up to £1,000 a year, towards a first home worth £450,000 or less (the account must be open at least 12 months)
- Shared Ownership — buy a share of a home and pay rent on the rest, with different schemes across the UK nations
- First Homes (England) — some new-build homes are sold to eligible first-time buyers at a discount

## Costs beyond the deposit

The deposit is only part of what you need to budget for. First-time buyers in England and Northern Ireland pay no Stamp Duty Land Tax on a home costing up to £300,000, and 5% on the portion between £300,001 and £500,000; the relief is not available on homes over £500,000. Scotland and Wales have their own separate property taxes. Our [Stamp Duty guide](/mortgages/stamp-duty) sets out the full rates and reliefs.

You will also need to budget for a valuation or survey, conveyancing (legal) fees, [any mortgage arrangement fee](/mortgages/mortgage-fees), and moving costs. Building up a small contingency for repairs is sensible once you own the property.

## Your rights

- Advising on and arranging mortgages is a regulated activity — deal only with a firm authorised by the FCA, which you can confirm on the FCA Register.
- If you receive mortgage advice, the adviser must recommend a mortgage that is suitable for your circumstances.
- If something goes wrong you can complain to the firm and, if unresolved, take it to the Financial Ombudsman Service free of charge.

## Official sources

- [MoneyHelper — Mortgages](https://www.moneyhelper.org.uk/en/homes/buying-a-home)
- [GOV.UK — affordable home ownership schemes](https://www.gov.uk/affordable-home-ownership-schemes)
- [Check a firm or adviser on the FCA Register](https://register.fca.org.uk)

## Related

- [Stamp Duty (SDLT)](/mortgages/stamp-duty/)
- [Mortgage Deposits](/mortgages/mortgage-deposits/)
- [Mortgage Affordability](/mortgages/mortgage-affordability/)
- [Mortgage Calculator](/tools-calculators/mortgage-calculator/)
- [Find a Mortgage Adviser](/tools-calculators/financial-directory/mortgage-advisers/)

## Sources

- MoneyHelper — [Government schemes for first-time home buyers and existing homeowners](https://www.moneyhelper.org.uk/en/homes/buying-a-home/government-schemes-for-first-time-home-buyers-and-existing-homeowners) (accessed 2026-08-22)
- GOV.UK — [Lifetime ISA](https://www.gov.uk/lifetime-isa) (accessed 2026-08-22)
- GOV.UK — [Stamp Duty Land Tax: residential property rates](https://www.gov.uk/stamp-duty-land-tax/residential-property-rates) (accessed 2026-08-22)