First Time Buyer — pricing factors (UK)
What lenders weigh when pricing first time buyer cases — not live quotes. Use our calculators and speak to an FCA-authorised broker for firm-specific numbers.
Mortgage118 does not publish indicative rate bands. Lender pricing changes daily and depends on your profile.
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What lenders look at
These factors shape whether a first time buyer case is accepted and how it is priced. They are not a quote.
- First-time buyer status (no previous property ownership)
- Stable income and employment history
- Good credit history and financial position
- Adequate deposit and affordability
- UK residency and age requirements
- Suitable residential property type
For indicative numbers, use our mortgage calculators and compare brokers who specialise in first time buyer.
What moves your rate up or down
These are the strongest factors lenders weigh when setting pricing.
- Lower deposit requirements (5-10%)
- Access to government schemes like Help to Buy
- First-time buyer specific products and rates
- Professional guidance and support
- Flexible lending criteria for new buyers
Fee breakdown
Common charges to plan for alongside the headline rate.
Arrangement Fee
Lender product fee
£0 - £1,999
often added to loan
Valuation Fee
Property survey
£0 - £1,500
sometimes free with lender
Legal Fees
Conveyancing costs
£800 - £1,500
plus disbursements
Broker Fee
Advice and arrangement
£0 - £500
some brokers are fee-free
Rate FAQs
Quick answers to common pricing questions.
What is the Help to Buy scheme and how does it work?+
Help to Buy is a government scheme that provides an equity loan of up to 20% (40% in London) of the property value, allowing you to buy with just a 5% deposit. The loan is interest-free for the first 5 years.
Can I get a mortgage with a 5% deposit?+
Yes, many lenders offer 95% loan-to-value mortgages for first-time buyers, though you may need to pay higher interest rates and potentially higher fees. Government schemes can also help with smaller deposits.
Can I get a first-time buyer mortgage with adverse credit?+
Some lenders may consider first-time buyers with minor credit issues, though you may need a larger deposit and face higher rates. Government schemes may not be available if you have significant credit problems.
What is stamp duty and do first-time buyers pay it?+
First-time buyers are exempt from stamp duty on properties up to £425,000, and pay reduced rates on properties up to £625,000. This can save thousands of pounds compared to other buyers.