Buying your first home has never been a walk in the park — and higher mortgage rates this autumn haven’t made it any easier. But it’s not all bad news.
Here’s an honest look at what’s happening and how you can give yourself the best chance.
What’s Making It Harder?
- Fixed mortgage rates have risen sharply, with the average two- and five-year fixes close to 6%
- Higher rates can reduce how much lenders will let you borrow
- Everyday costs are still rising, with inflation at 3.1% in August
What’s Working in Your Favour?
House price growth has slowed:
Nationwide reported annual house price growth of just 0.8% in September, down from 1.6% in August. With fewer buyers around, there may be more room to negotiate.
95% mortgages are still available:
The government’s Freedom to Buy scheme gives lenders a guarantee on mortgages of 91–95% of the property value. It’s designed to keep 5% deposit mortgages available for first-time buyers and home movers. You don’t apply to the scheme directly — you simply apply for a 95% mortgage with a lender that takes part.
A new scheme for new-build homes:
In the Autumn Budget, the government confirmed “Your First Home”, a scheme to help first-time buyers in England buy a new-build home with a deposit from 2.5%. The government lends up to 20% of the price as an equity loan, interest-free for the first five years. Applications open in February 2027 and the first loans follow from April 2027.
More flexible rules could be coming:
The FCA is reviewing its mortgage rules to help first-time buyers and people with less traditional incomes. Final rules are expected later this year.
Is a 5% Deposit a Good Idea?
It can be a great way to get onto the ladder sooner. But it’s worth knowing:
- Rates are usually higher than for buyers with bigger deposits
- If prices fall, you could have less equity in your home
- Even saving a little more — to reach 10% — could open up better rates
Our Top Tips for First-Time Buyers
- Check your credit report and fix any errors early
- Keep your bank statements tidy — lenders look closely at spending and buy now, pay later use
- Get a Mortgage in Principle before you start viewing
- Budget for extra costs like surveys, legal fees and moving
- Think about protection — life insurance and income protection help keep your new home safe
Let’s Chat
We love helping first-time buyers. We’ll explain every step, find the right lender for you and be there right through to getting the keys.
Get in touch today and let’s get you started.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The fee is up to 1% but a typical fee is £750.
Figures quoted are correct at the time of writing (October 2026) and are for information only. This blog does not constitute personal advice.