Buying your first home remains one of life's biggest milestones. In early 2026, with mortgage rates continuing to ease and 95% LTV deals readily available, the path onto the property ladder feels more achievable for many first-time buyers (FTBs) than it has in years. House prices are still high in hotspots, but improved affordability, longer terms, and government-backed options are helping.
At NestBoost, we specialise in clear, no-jargon guidance on UK mortgages, ISAs, and savings. This updated guide covers everything from the basics to completion - including simple explanations of LTV, interest rates, and mortgage term. (This is not personalised advice - always consult a qualified mortgage broker or adviser.)
Good fit if you're...
- Saving a 5% to 15% deposit and comparing realistic mortgage options.
- Trying to understand LTV, fixed vs tracker rates, and term trade-offs before speaking to a broker.
- Buying in England, Wales, Scotland, or Northern Ireland and budgeting for upfront costs.
Keep in mind
- Local taxes and scheme availability differ across UK nations.
- Rates and lender criteria move frequently, especially for high-LTV deals.
- Your broker or adviser can confirm what is actually available for your circumstances.
Quick prep
What to prepare before speaking to a broker
Use this as a quick pre-call checklist so your first broker conversation is focused on real options, not missing paperwork.
- Test realistic deposit, rate, and term scenarios in the NestBoost Mortgage Calculator.
- Check your credit records with Experian, Equifax, or TransUnion.
- Gather the last 3 months of bank statements and payslips.
- If self-employed, prepare 2 to 3 years of accounts or tax records.
- List regular commitments (loans, childcare, subscriptions) before speaking to a broker.
2-year fixed (from)
3.59%
5-year fixed (from)
3.75%
95% LTV deals (from)
4.49%
Rates snapshot: Illustrative market examples captured for this article update on . Live pricing varies by lender, fees, LTV band, affordability profile, and product availability.
Key takeaway
2026 rewards prepared buyers who understand the core terms and shop around. High-LTV deals are available, but deposit size, product type, and term choices still make a big difference to total cost.
Is 2026 a Good Time for First-Time Buyers?
Yes - conditions are the most buyer-friendly for several years. The Mortgage Guarantee Scheme remains permanently available, longer mortgage terms are common, and lenders are offering more flexibility than during the peak-rate period.
- Best 2-year fixed rates start from around 3.59% (lower LTV).
- Best 5-year fixed rates start from around 3.75%.
- 95% LTV first-time buyer deals start from around 4.49%, with averages around 4.9-5.0%.
Treat these as a planning snapshot, not a guaranteed quote.
You can now access 5% deposit mortgage options more easily than in recent years, but deal quality improves quickly as LTV comes down. Prepared buyers still have a clear advantage.
Key Mortgage Terms Explained: LTV, Interest Rates & Mortgage Term
These three concepts determine how much you can borrow, what you'll pay monthly, and the total cost of your home. Understanding them lets you compare products properly and speak confidently with brokers.
LTV is the percentage of the property's value that the lender is lending you.
In the examples below, the assumed property price is £300,000.
| Deposit | Mortgage | LTV |
|---|---|---|
| £15,000 | £285,000 | 95% |
| £30,000 | £270,000 | 90% |
| £75,000 | £225,000 | 75% |
Interactive LTV visual
Drag the handle on the ring to test how deposit and mortgage split change at different LTV levels.
Property value
£300,000
Deposit
£30,000
10.0% of property price
Mortgage
£270,000
90.0% LTV
Range set for first-time buyer planning: 60% to 95% LTV.
Lower LTV = lower lender risk = usually cheaper rates and more product choice.
Try this in Mortgage Calculator
Change Property value and Deposit to watch LTV move and compare how quickly your options improve with a larger deposit.
The annual cost of borrowing, shown as a percentage of the mortgage amount. This drives your monthly repayment.
- Fixed rate: locks the rate for an initial period (usually 2 or 5 years).
- Variable/tracker: can rise or fall, often linked to the Bank of England base rate (currently 3.75%).
When comparing mortgage deals, the headline rate alone can be misleading - especially if fees differ between products.
Use APRC for fairer comparisons
APRC (Annual Percentage Rate of Charge) helps compare total cost over the full term, including fees, not just the headline rate.
Try this in Mortgage Calculator
Test your current best quote, then increase the Interest rate to see how monthly payments and total cost change.
The number of years you have to repay the mortgage. For first-time buyers, 25-40 years is now common.
- Shorter term (e.g. 25 years): higher monthly payments, but much less interest overall.
- Longer term (e.g. 35-40 years): lower monthly payments, but higher total interest.
Many lenders now offer longer terms to help first-time buyers pass affordability checks. Use NestBoost calculators to compare the monthly and long-term impact.
Try this in Mortgage Calculator
Compare two nearby terms (for example 25 vs 30 years) using the Term control before deciding on affordability alone.
Assess What You Can Really Afford
Lenders assess full affordability, not just income multiples (often 4-5.5x). They look at spending, future commitments, and stress-test your mortgage against higher rates (commonly 7-8%).
Practical target
Aim for a monthly payment you would still be comfortable with if rates rose again or other household costs increased.
What lenders review most closely
Affordability checks are usually strongest when your application evidence is consistent with how you actually spend and save.
- Regular committed spending (loans, childcare, subscriptions, finance agreements).
- Household costs and dependants, not just your headline salary.
- Credit profile quality and recent missed payments or overdraft usage.
- Stress-tested affordability if rates were higher than today's deal rate.
- Consistency between payslips, bank statements, and declared spending.
Saving for Your Deposit & Upfront Costs
5% deposits (95% LTV) are realistic and widely available in 2026.
10%+ deposits unlock noticeably better rates and often a broader lender range.
Gifted deposits are commonly accepted with a signed gift letter.
Budget an extra 5-10% of the purchase price for:
- Stamp Duty (see the relief section below)
- Legal fees (£1,000-£2,500)
- Survey (£500-£1,500)
- Mortgage fees (£0-£2,000)
- Moving and furnishing costs
Try this in Mortgage Calculator
Use the Arrangement fee setting to compare paying fees upfront vs adding them to the loan, then check totals before choosing a lower headline rate.
Government Schemes Worth Using in 2026
Permanent scheme supporting lender confidence for 95% LTV mortgages. You usually do not apply separately - lenders incorporate eligible products directly.
Offers discounts (up to 50%) on selected new-build homes for local first-time buyers and key workers, subject to scheme rules.
Buy a share (often 10-75%) and pay rent on the remainder, with the option to increase your ownership later ("staircasing").
Strong first-time buyer boost: 25% government bonus (up to £1,000/year) for ages 18-39, if buying a first home under £450,000.
GOV.UK: Lifetime ISA(opens in new tab)
Want to go deeper? Lifetime ISA deposit-planning article (coming soon).
Stamp Duty Relief for First-Time Buyers (2026)
What stamp duty is and when it is paid
In England and Northern Ireland, Stamp Duty Land Tax (SDLT) is a property purchase tax that may be due depending on the price and your buyer status. First-time buyer relief can reduce or remove SDLT on part of the purchase price.
In practice, your solicitor or conveyancer will usually prepare the SDLT return and arrange payment as part of completion. HMRC deadlines are short, so this is normally handled immediately around completion (currently within 14 days of completion / effective date in England and Northern Ireland).
England & Northern Ireland (First-Time Buyer Relief)
Scotland and Wales have different tax systems and first-time buyer relief rules. Always calculate your exact costs for the property and location you are buying in.
Try this in Mortgage Calculator
Use the Stamp duty mortgage setting (where available in your plan) to include SDLT in total-cost comparisons instead of estimating it separately.
Mortgage Types Explained for First-Time Buyers
| Type | Best for | Pros | Cons |
|---|---|---|---|
| Fixed (2/5 years) | Budget certainty | Payments stay the same | Early repayment charges (ERCs) |
| Variable / Tracker | Expecting further rate cuts | Can drop quickly | Can rise quickly |
| Longer term (35-40 years) | Lower monthly payments | Easier affordability | More total interest paid |
Most first-time buyers choose a 2- or 5-year fixed product for budgeting certainty.
The Mortgage Process: Step-by-Step
Get finances ready + credit check
Obtain Agreement in Principle (AIP)
House hunt and make offers
Instruct solicitor
Full application + valuation/survey
Mortgage offer
Exchange & completion (usually 8-16 weeks total)
Common Pitfalls & Expert Tips
- Never borrow the absolute maximum the bank offers - leave a buffer.
- Avoid big spending or job changes mid-application.
- Use a whole-of-market broker who understands high-LTV and first-time buyer lending.
- Factor in service charges on new-build flats.
Ready to Start Your Journey?
At NestBoost you get mortgage and ISA calculators, savings planning tools, and practical guidance to compare LTV, rates, and term choices more clearly.
Start with your numbers
Run your figures in under two minutes and compare what you can afford with different deposits, rates, and mortgage terms.
Final reminder
With rates lower than they've been for years and 5% deposit options widely available, 2026 can be a strong year to buy - provided you understand LTV, interest rates, and term trade-offs.
You've got this. Let's boost that nest egg into your first home.
Last updated: . Mortgage rates and rules change frequently - always verify with a professional adviser or official sources.