Key Takeaway

First-time buyers in the UK can access fixed-rate mortgages (typically 2-year, 5-year, or 10-year deals), tracker mortgages that follow the Bank of England base rate, and discount mortgages that offer a reduction off the lender’s standard variable rate (SVR). Rates vary widely based on your deposit size (expressed as loan-to-value or LTV), the length of the deal, your credit history, and the lender. As of July 2026, competitive fixed rates for first-time buyers with a 10% deposit often sit in the mid-to-high 4% range, while those with larger deposits of 25% or more may access rates closer to 4% or below, though rates change frequently.

What Types of Mortgage Rates Are Available

First-time buyers can choose from three main rate structures, each with different risk and cost profiles.

Fixed-rate mortgages lock your interest rate for a set period, usually two, five, or ten years. Your monthly repayment stays the same throughout the deal period, protecting you from base rate rises. After the fixed term ends, your mortgage reverts to the lender’s SVR, which is typically higher, so most borrowers remortgage at that point. Fixed-rate products are the most popular choice for first-time buyers because they offer payment certainty (MoneySavingExpert, 2026).

Tracker mortgages follow the Bank of England base rate, rising and falling in line with it. If the base rate is 4.5%, a tracker at base rate plus 1% would charge 5.5%. Your monthly payment can change whenever the base rate moves. Trackers typically offer lower initial rates than fixed deals but carry the risk that rates could rise during the term.

Discount mortgages offer a set reduction off the lender’s SVR for a fixed period. For example, a 1.5% discount off a 7% SVR gives you a 5.5% rate. Because the SVR can change at the lender’s discretion, your rate is less predictable than a tracker.

How Your Deposit Affects the Rate

The size of your deposit has the single largest impact on the interest rate you will be offered. Lenders express this as loan-to-value (LTV): the percentage of the property value you are borrowing. A 10% deposit means a 90% LTV mortgage; a 25% deposit means 75% LTV.

Read also: What Is a Mortgage Agreement in Principle in the UK

Lower LTV mortgages carry less risk for the lender and therefore attract better rates. A first-time buyer with a 5% deposit (95% LTV) might see rates 1.5 to 2 percentage points higher than someone borrowing at 75% LTV. MoneyHelper recommends saving the largest deposit you can manage, as each LTV tier (95%, 90%, 85%, 75%, 60%) typically unlocks better rates and a wider choice of lenders (MoneyHelper, 2026).

Other Factors That Influence Your Rate

Beyond deposit size, lenders assess your credit history, income stability, employment type, and the property type. A strong credit file, stable employment, and a standard freehold or leasehold property improve your chances of accessing the best advertised rates. Self-employed borrowers or those with adverse credit may face higher rates or a smaller choice of lenders (Which?, 2026).

The length of the fixed or discount period also affects the rate. Two-year fixed deals often have slightly lower headline rates than five-year deals, but you will face arrangement fees and the uncertainty of remortgaging sooner. Longer fixes offer stability at a modest rate premium.

What to Do Next

Start by checking comparison sites or speaking to an FCA-authorised mortgage broker to see current rates for your deposit size and borrowing amount. Apply for an agreement in principle (AIP) to confirm what you can borrow and at what rate before making an offer on a property. Rates change daily, so verify current terms with an FCA-authorised lender or adviser before deciding.

Your home may be repossessed if you do not keep up repayments on your mortgage. The information in this article is general educational guidance, not regulated mortgage advice or personalised financial recommendations. Refisage is not authorised by the Financial Conduct Authority. Eligibility, rates, fees, and product availability vary by lender and your personal circumstances. Consider speaking to an FCA-authorised mortgage adviser for advice tailored to your situation.