The Best Mortgage Products for First-Time Buyers in 2025
Saving for a deposit is one of the biggest challenges for first-time buyers, especially during a national cost of living crisis. Between rent, bills, and day-to-day expenses, putting aside thousands of pounds can feel out of reach. But if you’re hoping to buy your first home in 2025, there are more mortgage options than ever designed to help you, even if you have little or no deposit.
Let’s explore some of the most accessible mortgage products for first-time buyers this year.
Can You Get a Mortgage With No Deposit?
Yes, although it’s tricky. 100% mortgages are limited but possible, particularly through Guarantor Mortgages or a Track Record Mortgage. With a Guarantor Mortgage, a guarantor, usually a parent, offers their savings or home as security. If you default, their assets could be at risk, so this option requires trust and careful planning.
To qualify, you’ll typically need a solid credit score, steady income, and minimal debt. Some lenders will also consider your history of paying rent and household bills on time as a sign of financial reliability.
Track Record Mortgages
For renters, Track Record Mortgages offer an exciting new way to buy with no deposit, if you have a strong rental history. If you’ve paid your rent and household bills consistently for at least 12 out of the last 18 months and haven’t owned a home in the last three years, you may be eligible.
These mortgages are available up to 100% LTV (Loan to Value), and some lenders now allow monthly payments up to 120% of your current rent. You must have no missed payments on debts or bills in the past six months, and the maximum loan amount is typically £600,000.
Low Deposit Mortgages
If you’ve saved a small deposit, typically 5%, you’ll have a broader range of products to choose from.
95% Mortgages
A 95% mortgage allows you to borrow 95% of a property’s value, requiring just a 5% deposit. It’s a popular choice for first-time buyers, offering access to better interest rates and more lender options than no-deposit alternatives.
Shared Ownership
Shared Ownership lets you buy a portion of a property (usually between 25% and 75%) and pay rent on the rest. Some schemes now allow you to buy as little as 10%. The deposit is based on the share you buy, making it far more affordable than purchasing the whole property upfront.
You’ll need a household income below £80,000 (£90,000 in London) to qualify. In some cases, over time, you can buy more shares (a process called staircasing), eventually owning the property outright.
Government Support: The First Homes Scheme
The First Homes Scheme offers some new-build homes to first-time buyers at a 30–50% discount. You must be able to get a mortgage for at least half the discounted price, and your household income must be under £80,000 (£90,000 in London). Homes under this scheme are capped at £250,000 outside London and £420,000 within, post-discount.
Some local authorities give priority to people who already live in the area, key workers, or those with lower incomes. You’ll also need a deposit of at least 5% of the discounted price.
Helping Hand Mortgage
If you’re earning a decent income but don’t have a large deposit, the Helping Hand Mortgage could let you borrow up to six times your income. It’s designed for applicants earning at least £35,000 (single) or £55,000 (joint) and is available up to 95% LTV (Loan to Value) with 5- or 10-year fixed rates.
This product can significantly boost your borrowing power, ideal if you’re trying to buy in a competitive market.
Joint Borrower, Sole Proprietor Mortgages
Another option that it growing in popularity is the Joint Borrower, Sole Proprietor mortgage. This allows parents or relatives to support your mortgage application by adding their income, without becoming a co-owner of the property.
It’s a great short-term solution if your income is too low to qualify on your own. Over time, once your earnings increase, you can remove the joint borrower. Just be aware: although they don’t legally own the home, joint borrowers are still responsible for the mortgage repayments. Also, gifted deposits aren’t allowed with this product.
Getting on the property ladder in 2025 may still be challenging, but it’s far from impossible. Whether you’re working with no deposit, a small one, or relying on family support, there are more tailored mortgage options than ever before.
Start by checking your credit score, reviewing your income and debts, and collecting proof of rent and bill payments. Then, speak with one of our mortgage advisers to find the most suitable product for your circumstances.
*You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up with repayments on your mortgage.
There may be a fee for arranging a mortgage. The actual amount you pay will depend on your circumstances. The fee is up to 1.5% but a typical fee is 0.3% of the amount borrowed.
