Buying your first home in 2026 feels very different to even a year ago. Mortgage rates have steadied, lenders are more willing to lend again, and first-time buyers are firmly back at the centre of the market. In fact, they’re now one of the main forces keeping transactions moving.
That doesn’t mean buying has become simple. The challenge this year isn’t access; it’s preparation. Buyers who understand how the market works in 2026 are moving faster and with fewer surprises. Those who don’t are finding out the hard way.
Freedom to Buy: Helpful, But Not a Shortcut
The government’s permanent Mortgage Guarantee Scheme supports 95% mortgages, meaning some buyers can get started with a 5% deposit.
That support matters, especially as first-time buyers continue to make up a large share of new mortgage lending. But Freedom to Buy doesn’t override lender checks. Affordability, credit history, and documented spending still decide whether an application succeeds.
Rates on 95% deals also sit higher than those available to buyers with larger deposits. Freedom to Buy opens the door, but it doesn’t change the cost of borrowing once you step through it.
Deposit Strategy: Why the Minimum Isn’t Always the Best Move
A 5% deposit can work, but it’s rarely the strongest position. Even small increases in deposit size can widen lender choice and reduce monthly repayments.
In 2026, many buyers are using a mix of savings and family help to strengthen their applications. That approach is common, but lenders are strict on how gifted deposits are recorded. Missing paperwork or vague explanations can slow things down just when speed matters.
The smarter question this year isn’t “what’s the minimum deposit I need?” It’s “what deposit gives me the most flexibility?”
New Builds: Incentives Come With Extra Rules
New builds remain popular with first-time buyers, particularly where developers offer deposit contributions or help with fees. These incentives can make buying feel achievable sooner.
However, lenders continue to treat new builds differently. Flats often face tighter loan limits, valuations can be cautious, and incentives must be declared clearly. If they’re not, the amount you can borrow may be reduced.
New builds can be a good route onto the ladder, but they need to be handled carefully to avoid last-minute complications.
What Lenders Are Paying Closer Attention To
While mortgage rates are expected to sit broadly between 3.5% and 4.5% this year, according to Property Watchdog, affordability checks haven’t relaxed in the same way. Lenders are now looking more closely at spending patterns, regular commitments and how well applications are documented.
There’s also no single way lenders assess risk. One lender may approve an application, another declines. This is why applying without guidance often leads to wasted time and unnecessary credit checks.
Get Buyer-Ready Before You Start Viewing
Mortgage lending is expected to grow modestly in 2026, not shrink. That’s good news for first-time buyers, but it also means competition is back.
Preparation is what separates buyers who move smoothly from those who stall.
Knowing your true borrowing power, choosing the right deposit strategy and matching yourself to the right lender before you view properties puts you in control.
If you want to buy with confidence this year, the smartest first step is speaking to a mortgage expert and getting buyer-ready early.