Content Writer
Mortgage Advisor & Director
If you’re a first-time buyer, finding the best mortgage rate available can set you on the right path as a new homeowner. Here, we’ll explain what impacts first-time buyer mortgage rates, how to compare deals, and where you can find exclusive mortgages to potentially save you thousands over the life of your loan.
Compare first-time buyer mortgage rates online
We’ve made it simple and easy for you to compare first-time buyer mortgage rates online for free in real time with our tool below:
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How our mortgage rates comparison tool works
We’ve preset this for first-time buyers, so it’s ready to go, but you can toggle various options, such as property value, mortgage size, type of mortgage, and term (e.g. 25 or 30 years), to see how it affects the rates and repayments for your mortgage.
Our comparison tool allows you to view rates from over 90 of the best first-time buyer lenders across the UK. You can sort the results by current rates or total cost, helping you see not just the cheapest rate, but the most cost-effective deal overall. This is particularly helpful if you want to compare deals with varying fees or cashback offers.
Factors that impact your mortgage rate
As a first-time buyer, several factors will influence the rates you can access. Here are the key areas that can affect first-time buyer mortgage rates in the UK:
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Deposit and LTV: The size of your deposit will determine the percentage of the property’s value you’re borrowing. Some lenders offer first-time buyers exclusive access to 95% LTV mortgages, but a lower LTV ratio can sometimes result in better rates. With a larger deposit, you could get access to more competitive mortgages.
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Credit history: Lenders look at your credit reports to assess any potential risks. A strong credit profile with no adverse credit can sometimes improve your chances of securing a better rate. However, some lenders specialise in bad credit mortgages for first-time buyers. Finding the right lender to approach will depend on the age and severity of your bad credit.
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Mortgage product type: You’ll likely be using a repayment mortgage, as interest-only mortgages are rare. However, you’ll need to choose between a variable or fixed-rate mortgage. Fixed-rate mortgages tend to be popular with first-time buyers because they offer a level of stability, but the rate is influenced by the length, for example, whether you opt for 2 or 5 years.
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Type of income: Standard applicants paid via PAYE can be more straightforward for lenders to assess than other types of income. For example, if you’re self-employed, work as a contractor, or earn bonuses or commission, lenders will evaluate your income differently. Certain lenders are more flexible than others when it comes to various income types and interest rates.
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Other factors: Other elements can impact your rates as a first-time buyer. For example, your age, profession and job stability, along with the type of property you're buying, can make a difference. Non-standard construction properties or those with unusual features may result in a smaller pool of lenders willing to offer the best rates.
How a broker can help you get the best rate
Whether you're confident comparing online or need more hands-on help, we can make the whole process easier for you. You can compare current first-time buyer rates using our free tool, or we can connect you with one of our experienced mortgage brokers who specialises in helping first-time buyers.
While our online comparison tool is a great place to start if you’re looking to compare first-time buyer mortgage rates in the UK, speaking with a mortgage adviser can give you access to tailored support. This is particularly useful if your application falls outside the strict lending criteria of high street banks and mainstream lenders.
If you’d like a free, no obligation chat with an experienced mortgage broker who can get you the best first-time buyer rates based on your individual circumstances, you can get started here:
Find your ideal first-time buyer mortgage on Teito
First-time buyer buy-to-let mortgage rates
While less common, it is possible to get a buy-to-let mortgage as a first-time buyer, but it’s more complex and often comes with higher rates and stricter criteria, and lenders typically:
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Require a larger deposit, usually in the region of 25%.
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Use projected rental income to assess affordability.
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Offer higher interest rates and mortgage arrangement fees.
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May need a guarantor or additional security as collateral.
If you're buying a property to rent out rather than live in, it’s essential to speak with a broker who understands the nuances of first-time buyer buy-to-let mortgages.
Why use Teito to compare first-time buyer mortgage rates?
You can use our tool to compare the latest first-time buyer mortgage rates for yourself. However, if you need some support or guidance, our brokers specialise in helping first-time applicants secure the most competitive mortgage deals available.
Because our brokers work with first-time buyers every day, they understand which lenders are most likely to approve your application and how to present it in the best possible light, even if your situation doesn’t fit perfectly into a high street lender’s criteria. You'll also get access to exclusive products and rates.
Here are a few more reasons why first-time buyers choose us to help them find a mortgage:
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Our brokers specialise in first-time buyer applications
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Your first chat is completely free with no obligation to proceed
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We have 5-star ratings on leading review platforms
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Access to exclusive first-time buyer rates and deals
Ready to take advantage of a free, no-obligation chat with a broker who specialises in first-time buyer mortgages? You can get started here.
FAQs
It depends on whether you’re looking to buy in Northern Ireland or the Republic of Ireland. The approach to first-time buyers can vary depending on whether or not you’re based in the UK.
The rates can also differ because they’re separate markets and, amongst other things, can be influenced by the Bank of England (BoE) and the European Central Bank (ECB), respectively.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.