First-time buyer mortgages, explained

A first-time buyer mortgage is an ordinary residential mortgage for someone buying their first home. You usually need at least a 5% deposit (a 95% loan-to-value mortgage), with bigger deposits unlocking more lenders and lower rates. Family can help through a gifted deposit, JBSP or a guarantor, and schemes like shared ownership and Right to Buy can lower the entry cost. How much you borrow depends on income and outgoings.

Your first mortgage has more moving parts than most: deposit, the help you can use, and which scheme fits. This section explains each in plain English so you know what is realistic before you start viewing.

Two questions decide everything

First, how much deposit you have, which sets your loan-to-value and therefore your rate and choice of lenders. Second, how much you can borrow on top, which comes from your income and outgoings. Family help can move both: a gift increases the deposit, while JBSP and guarantor arrangements increase how much you can borrow. The pages below cover each route.

Start here

How much deposit do I need? The realistic minimum, and why a bigger deposit unlocks better rates. Gifted deposit (Bank of Mum and Dad) Using family money for your deposit, and the paperwork lenders want. JBSP (joint borrower sole proprietor) A parent boosts your borrowing without going on the deeds. Guarantor mortgage A family member backs your mortgage with their income or property. 95% (5% deposit) mortgage Buying with a 5% deposit: how it works and what to expect. Shared ownership mortgage Buy a share, pay rent on the rest, and staircase up over time. Right to Buy mortgage Buying your council or housing-association home at a discount. New build mortgage Why a new-build needs its own approach, timing and valuation care.

Common questions

How much deposit does a first-time buyer need?

Most lenders want at least 5% of the price, so 95% loan-to-value deals exist, but a 10% or higher deposit opens more lenders and lower rates. The bigger your deposit, the cheaper your borrowing usually is. How much you can borrow on top depends on your income and outgoings.

Can my family help me buy?

Yes, in several ways: a gifted deposit, a joint borrower sole proprietor (JBSP) arrangement where a parent boosts your borrowing without owning the home, or a guarantor mortgage backed by their income or property. Each suits a different situation, which the guides in this section explain.

What schemes are there for first-time buyers?

Beyond a standard mortgage, options include shared ownership (buy a share and rent the rest), Right to Buy (buying your council or housing-association home at a discount), and new-build purchases. Availability and rules vary, so check the current position for your area and property.

Do I have to use a broker?

No, but a first purchase is exactly where matching your situation to the right lender matters most, especially with a small deposit or family help. We introduce you to a regulated mortgage broker who can advise you and arrange it.

Self-employed first-time buyer? See self-employed mortgages. Wondering in plain words how family can help? Read I want to help my child buy their first home.

AP

Adam Parker

Founder, MortgageExplained, MortgageExplained

Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.

Last reviewed: 29 June 2026

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