First-Time Buyer Mortgage Rates 2026 — Updated October 2026
- 85% LTV (Danske Bank)
- 4.69%85% LTV (Danske Bank)
- 90% LTV (Danske Bank)
- 4.77%90% LTV (Danske Bank)
- monthly on £270k
- £1,412monthly on £270k
- Last updated
- October 2026Last updated
First-time buyers with a 15% deposit can fix from 4.69% in October 2026, and from 4.77% with a 10% deposit (Danske Bank, £1,124 fee). Rates rose in September across the market, so securing a mortgage in principle early matters.
First-Time Buyer Mortgage Rates by Deposit — October 2026
Swipe the table sideways to see every column.
| Deposit (LTV) | Best 2-year fix | Next best |
|---|---|---|
| 15% (85%) | 4.69% Danske Bank | — |
| 10% (90%) | 4.77% Danske Bank | 5.13% Halifax |
| 5% (95%) | Higher; limited lenders | Check with us |
What a first-time buyer mortgage costs: worked example
- Monthly payment
- £1,412 a month
£300,000 home, 10% deposit, £270,000 over 30 years at 4.77%.
Rates rose in September — lock in today, review before completion
The figures above are indicative and describe the best case. Send your own scenario and we will come back the same working day with terms from the lenders that actually fit it.
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Enough detail to price it is the amount, the security, the purpose and how you plan to repay. The rest we can fill in on a call.
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Rate context and outlook
The Bank of England held Bank Rate at 3.75% on 17 September 2026, its sixth consecutive hold, but three of nine MPC members voted to raise it to 4.0%. The Committee warned policy may have to tighten if the Middle East conflict persists.
Fixed rates are priced from swap rates, and the 2-year swap rose from 4.26% on 3 September to above 4.70% by mid-month, so most major lenders repriced fixed rates upward two or three times in September. The next decision is on 5 November. If your deal ends in the next six months, securing a rate now and reviewing it before completion is the lower-risk approach.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
How much deposit do I need?
5% minimum; 10%–15% opens far more lenders.
Can family help?
Yes — gifted deposits are accepted with a gift letter.
How much can a first-time buyer borrow?
Typically 4 to 4.5 times income; a joint £60,000 income supports about £240,000–£270,000.
Are there first-time buyer schemes?
Yes, including shared ownership and lender-specific 95% products; see our Shared Ownership and New Build guides.
Should a first-time buyer fix for 2 or 5 years?
With rates this close, a 5-year fix gives certainty through the early, tightest years of ownership.
How much can I borrow?
Usually 4 to 4.5 times income, with some lenders going to 5 or 5.5 times for higher earners and certain professions, subject to affordability.
How long does a mortgage take?
A mortgage in principle takes minutes to a day; a full offer usually takes 2–4 weeks from application.
Is a lower rate with a high fee better than a no-fee deal?
It depends on the loan size. On smaller loans the no-fee deal often wins; we compare the total cost over the fixed period.
How early can I remortgage?
You can secure a new deal up to six months before your current one ends.
What documents will I need?
ID, proof of address, 3 months' payslips and bank statements, or 2 years' accounts or tax calculations if self-employed.
Where this applies
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Think carefully before securing other debts against your home.
Get a personalised rate comparison for your case
Independent whole-of-market advice · FCA No. 814533