Buying your first home can feel like trying to solve a Rubik’s Cube in the dark – confusing, frustrating, and a bit overwhelming. But here’s the good news: there are lenders and schemes specifically designed to help first-time buyers get that all-important first step on the property ladder.
In this guide, I’ll break down some of the key mortgage deals for first time buyers and schemes currently out there – from big lenders like Nationwide and Leeds Building Society, to government-backed initiatives such as the First Homes Scheme. I’ll also point you towards options like Accord’s 5% deposit mortgage.
By the end, you’ll have a clear picture of what’s available and how it could fit your circumstances.
Mortgage Deals for First Time Buyers; Nationwide’s Helping Hand
Nationwide, the UK’s biggest building society, has a scheme called Helping Hand, which essentially gives first-time buyers access to bigger mortgages compared with the standard affordability model.
- What’s the catch? There isn’t one in the sense of hidden traps, but you do need to meet the criteria. Nationwide will let you borrow up to 5.5 times your income (instead of the typical 4.5), provided at least one applicant earns £37,000+ (or £55,000 combined).
- Deposit: You’ll still need at least a 5% deposit.
- Who does it suit? Young professionals with decent incomes but limited savings for a deposit. For example, if you’re earning £40k a year, this could boost your maximum borrowing power by tens of thousands of pounds – potentially putting homes that seemed out of reach back on the table.
Nationwide is particularly popular because it’s been around forever and tends to treat borrowers fairly. But, and it’s a big but, higher borrowing means higher repayments. You must be brutally honest with yourself about affordability. Just because the bank says you can borrow it, doesn’t mean you should.
Leeds Building Society: Boosting First-Time Buyer Options
Leeds Building Society has long been proactive in helping first-time buyers. One of its standout offerings is the Home Deposit Saver mortgages.
- Key feature: Leeds accepts family member support more flexibly than many other lenders – including guarantor-style options where relatives can help secure your loan.
- Small deposits: They’re active in the 95% loan-to-value space (meaning you only need a 5% deposit).
- Niche help: Leeds also runs targeted schemes for people using shared ownership and government schemes.
The society has built a reputation for saying “yes” to cases that bigger high-street lenders might decline. If you’re a first-time buyer with slightly unusual circumstances – perhaps your income structure isn’t straightforward, or you’re buying a new-build flat – Leeds could be worth a serious look.
The First Homes Scheme
This is a government-backed scheme specifically designed for first-time buyers and key workers. In short, it offers newly built homes at a minimum 30% discount compared to the local market price.
- How it works: Developers (like Persimmon Homes) list properties as part of the scheme. You buy at the discounted price, and when you eventually sell, you must pass on the discount to the next eligible buyer.
- Eligibility: You must be a first-time buyer with a household income below £80,000 (£90,000 in London). Local authorities can also prioritise key workers or local residents.
- Example: A home worth £250,000 could be bought for £175,000 under this scheme – a considerable saving, though the property pool is limited.
Here’s Persimmon’s explainer, which breaks it down. If you’re eligible, this can be a game-changer.
Accord Mortgages: 5% Deposit Deal
Accord (part of Yorkshire Building Society) has a £5k deposit mortgage, specifically designed for first-time buyers.
- How it works: You only need to save a £5,000 deposit, regardless of the property’s value (subject to limits).
- Why it matters: For many renters, saving even 5% of a property price feels like Everest. Having a fixed minimum deposit target is psychologically and practically easier.
- Catch: You’ll need to meet affordability checks, and maximum property values depend on the region.
Full details here. This one’s worth checking if your main barrier is scraping together a deposit.
Other First-Time Buyer Schemes Worth Knowing
1. Shared Ownership
This lets you buy a share of a home (usually 25%–75%) and pay rent on the rest. Later, you can increase your share (a process called “staircasing”). Pros: lower deposit and mortgage required. Cons: You’ll pay rent + service charges on top of your mortgage.
2. Lifetime ISA (LISA)
Save up to £4,000 per year and the government adds a 25% bonus. Save £1,000 and get £250 free. This is specifically for first home purchases or retirement. If you don’t already have one, consider it – but you must have held it for at least 12 months before using it towards a property.
3. Mortgage Guarantee Scheme
Launched by the government, it encourages lenders to offer 95% mortgages. Several big lenders (including Barclays, Santander, NatWest, and Lloyds) take part. This is less a “scheme you apply for” and more a behind-the-scenes safety net for lenders, but it means more 5% deposit mortgages are available.
4. Deposit Unlock (for New Builds)
A scheme backed by housebuilders and lenders, enabling 5% deposits on new-build properties. If you’ve been told you need a larger deposit for a new build (many lenders ask for 10%+), this could bridge the gap.
Final Thoughts
For first-time buyers, the mortgage market can feel daunting – but there really are options out there designed to help. The key is to:
- Work out your affordability realistically (use an online mortgage calculator as a starting point).
- Save as much of a deposit as possible – the bigger your deposit, the better the rates.
- Check all available schemes in your area, as eligibility varies.
- Speak to a mortgage broker – they’ll know which lenders are most likely to say “yes” based on your circumstances.
Don’t just grab the first shiny offer – think long-term. The wrong mortgage deal can cost you thousands over the years.
First-Time Buyer Mortgage Q&A
Q: What’s the minimum deposit I need as a first-time buyer?
A: Typically 5% of the property’s value, though some schemes (like Accord’s £5k deposit mortgage) set a fixed minimum. Larger deposits (10%+) usually mean better rates.
Q: Can parents help me buy?
A: Yes. Lenders like Leeds Building Society allow guarantor or family-assist mortgages. There are also “Joint Borrower, Sole Proprietor” mortgages where parents help with affordability but don’t go on the deeds (so no extra stamp duty).
Q: Are 95% mortgages risky?
A: They’re not “bad” per se, but you’ll have higher monthly payments and be more exposed if house prices fall (negative equity). If you can stretch to 10%, you’ll usually get better rates.
Q: Do I have to be a key worker to use the First Homes Scheme?
A: Not necessarily. While local councils may prioritise key workers, the main requirement is being a first-time buyer under the income threshold.
Q: Should I use a broker or go directly to the bank?
A: Always consider a broker – they can access deals not available directly and save you time. Going straight to one bank limits your options.
If you need guidance, working with an experienced mortgage broker can help you navigate the best mortgage deals for first time buyers. With the right advice and preparation, that’s where The Mortgage Blog can help turn your dreams into reality. Contact us on 0333 335 6595 or message us to explore your options and get personalised advice tailored to your unique situation.
