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Gordon Blair Mortgage & Insurance Brokers
Mortgage & Protection Brokers - Norbury & Streatham
UK Mortgage Rates for First-Time Buyers in 2025
Buying your first home?
Getting on the property ladder is exciting — but mortgage rates can feel confusing. In 2025, first-time buyer rates are more stable than last year, but they still change depending on your deposit, income, and the lender you choose.
What Are the Current Rates?
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Most first-time buyer mortgages are between 3.75% and 5.6%.
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Two-year fixed deals start from about 3.75%.
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Five-year fixed rates are usually around 4% to 4.5%.
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The Bank of England base rate is 4.00% (September 2025).
What Affects the Rate You Get?
Lenders look at a few key things:
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Deposit — Bigger deposit = lower rate.
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Credit history — A good score helps you get better deals.
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Loan-to-value (LTV) — The percentage you borrow compared to the property price.
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Type of deal — 2-year vs 5-year fixed, or variable rates.
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Fees — Some low-rate mortgages come with high fees, so always check the total cost.
Example First-Time Buyer Deals (2025)
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HSBC – 2-year fixed around 3.89%.
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Leeds Building Society – First-time buyer 2-year fixed at about 3.94%.
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RBS – 2-year fixed around 3.82%.
(Rates vary by deposit, income and credit score)
Tips for First-Time Buyers
✅ Save a bigger deposit to unlock better rates.
✅ Improve your credit score before applying.
✅ Get a Decision in Principle (DIP) to know how much you can borrow.
✅ Compare deals based on both rate and fees.
✅ Speak to a mortgage broker who can find deals not always shown online.
Final Thoughts
In 2025, first-time buyers have more choice than last year, but finding the right mortgage is still tricky. Rates are lower if you have a good deposit and strong finances, but expert advice can make all the difference.
At Gordon Blair Mortgage & Insurance Brokers, we help first-time buyers across the UK find the right deal and make the process stress-free.
Important Note
This article is for guidance only. Mortgage rates change often and the right deal depends on your personal circumstances. For tailored advice, please speak with one of our expert advisors at Gordon Blair Mortgage & Insurance Brokers.