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Planning your finances to get one of the first time home loans UK is the most important initial step for anyone who wants to buy a property in England today.
Many buyers feel lost when trying to compare the rates and conditions of first time home loans UK. Especially with constant changes in banking and government rules.
In this article, we will analyze the ten main first time home loans UK options currently available. Detailing their real benefits and hidden requirements.
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Therefore, you will leave this reading with clarity on which financial path to follow, whether through a traditional bank. Ensuring your decision is based on concrete and updated data.
What Defines a Mortgage in the United Kingdom?
In the British context, a mortgage works as a long-term loan where the acquired property acts as direct collateral for the bank or credit union.
This means that the financial institution has the legal right to take the property if the payment of monthly installments is interrupted by the borrower.
You should know that the main borrowed amount is paid gradually, added to the interest, in a process known as amortization.
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Even before choosing the house, you must obtain a Decision in Principle, which is a preliminary approval indicating the maximum amount the bank accepts to lend based on income and financial history.
Main First Time Home Loans UK Options
1. Nationwide – Mortgage Helping Hand
Nationwide stands out with the Helping Hand program, designed to expand purchasing power.
This loan allows borrowing up to 33% more than standard limits, reaching up to 6 times the buyer’s total income.
Furthermore, a couple with a joint income of £50,000, for example, could finance up to £300,000, exceeding the conventional ceiling of £225,000.
Finally, the bank also offers £500 cashback and the flexibility to make extra payments of up to 10% without penalties.
Therefore, a 5% deposit is required and the contracting of fixed rates for 5 or 10 years, being exclusive to those who have not had a mortgage in the last three years.
2. Nationwide – 95% LTV Mortgage (First time home loans UK)
Another Nationwide alternative focuses on those with little financial reserve, financing up to 95% of the property value.
The loan limit reaches £750,000 and also includes the benefit of £500 cashback after the completion of the purchase.
Furthermore, amortization periods can extend up to 40 years, with options for fixed or variable rates between 2 and 10 years.
It is worth noting that this product does not cover apartments with leases shorter than 90 years nor properties linked to other subsidized programs.
3. Halifax – Mortgage for First Time Buyers
The Halifax offers flexibility with the Family Boost Mortgage.
This modality allows financing 100% of the property value if a family member deposits 10% of the price into a bank savings account for three years.
In addition, the family’s money is returned with interest at the end of the period, provided the installments are up to date.
Still, you should know that the bank offers £300 cashback to cover legal costs and up to £2,000 cashback for ecological improvements in efficient homes.
4. Halifax – Standard 95% Mortgage
For those who prefer a traditional path without involving family members, Halifax maintains a credit line that covers 95% of the property.
In this option, the differential is the incentive for sustainability, with £250 cashback for homes with energy certificate A or B.
Term conditions vary from 2 to 10 years and the entire application process can be started online, facilitating access for those seeking agility in approval.
5. NatWest – Mortgage for First Time Buyers (First time home loans UK)
NatWest invests in direct financial incentives, offering cashback that varies between £150 and £1,000, depending on the chosen product.
As a rule, the bank accepts deposits from 5% and has a specific line of “green mortgages” for properties with high energy efficiency.
6. Skipton Building Society – Track Record Mortgage
Skipton innovated with the Track Record, focused on tenants who want to become owners.
This product finances 100% of the value without requiring any deposit, provided the applicant proves rent payment for 12 consecutive months and has a good credit history.
Furthermore, the monthly mortgage installment cannot exceed the average rent previously paid.
You should know that the property ceiling is £600,000 and the maximum term is 35 years, with a fixed rate of 5.49% for 5 years.
7. Lloyds – 95% Mortgage and First Time Buyer Boost
Lloyds combines high percentage financing with high income multipliers.
With just a 5% deposit, it is possible to access the “First Time Buyer Boost”, which raises the loan limit to up to 5.5 times the applicant’s income.
This is crucial for those with moderate salaries but need a higher amount to compete in the current real estate market.
8. Lloyds – Lend a Hand Program
Similar to the Halifax model, the Lloyds Lend a Hand eliminates the need for a buyer’s deposit if a relative keeps 10% of the property value in a blocked account for three years.
Initially, the buyer receives £300 cashback and holds the property entirely. The financing limit is £500,000 with a term of up to 30 years.
9. HSBC – 95% Mortgage (First time home loans UK)
HSBC maintains a solid offer of financing up to 95% of the property value, with extended terms of up to 40 years.
Although not exclusive to first-time buyers, it is often promoted to this audience due to the low deposit requirement.
It is important to know that the loan limit is £500,000, but there is an important restriction: this product is not available for new construction properties.
10. Government Programs
The English government maintains vital schemes to facilitate access.
For example, First Homes offers new homes with a discount of at least 30% off the market value for buyers with a household income below £80,000 (£90,000 in London).
The “Shared Ownership” allows buying a fraction of the property (between 10% and 75%) and paying rent on the rest, drastically reducing the amount needed for the deposit.
There is also the “Mortgage Guarantee Scheme”, where the government guarantees part of the risk for banks to offer 95% LTV mortgages.
Comparative Table of First Time Home Loans UK
| Institution | Main Product | Minimum Deposit | Key Benefit | Value / Income Ceiling |
| Nationwide | Helping Hand | 5% | Loan up to 6x income | N/A |
| Nationwide | 95% LTV | 5% | £500 Cashback | £750,000 |
| Halifax | Family Boost | 0% (w/ family support) | Finances 100% of the property | £500,000 |
| NatWest | First Time Buyer | 5% | Cashback up to £1,000 | N/A |
| Skipton | Track Record | 0% (for tenants) | No deposit required | £600,000 |
| Lloyds | Lend a Hand | 0% (w/ family support) | Interest paid to family | £500,000 |
| Lloyds | Buyer Boost | 5% | Loan up to 5.5x income | N/A |
| HSBC | 95% Mortgage | 5% | Term up to 40 years | £500,000 |
| Government | First Homes | 5% (of reduced value) | 30% discount on the price | Income < £80k/£90k |
Conclusion (First time home loans UK)
The housing credit scenario in England offers robust paths through institutions like Nationwide, Halifax, Lloyds, and state programs.
The first time home loans UK options range from models without a deposit, supported by family or rental history, to those that maximize purchasing power based on income.
Choosing the right product requires more than looking at the interest rate; it involves understanding the contract flexibility, hidden costs, and the support offered.
Keep in mind that the decision to buy now with a low deposit or wait should be weighed carefully, analyzing the market and your long-term financial capacity.
Don’t let this opportunity pass you by. Consult an online simulator or a financial advisor today to check your eligibility and take the first concrete step towards your new home.
If you need a small amount for the deposit, it is worth knowing about fast approval loans. This is a great credit, especially if you already have a good amount saved and need just a little more to buy the house, or make the down payment on the financing.