5% deposit deals, no-fee brokers and stamp duty relief explained — L&C · Habito · Mojo · Nationwide · Halifax compared
Getting on the property ladder is one of the biggest financial decisions you will make. Choosing the right mortgage — and the right way to find it — can save you thousands over your fixed-rate term. Most first-time buyers should start with a whole-of-market broker before approaching lenders directly.
| Purchase price | Standard buyer | First-time buyer | Saving |
|---|---|---|---|
| £200,000 | £1,500 | £0 | £1,500 |
| £300,000 | £5,000 | £0 | £5,000 |
| £400,000 | £10,000 | £5,000 | £5,000 |
| £500,000 | £15,000 | £10,000 | £5,000 |
| Over £500,000 | Standard rates apply | No relief | — |
| Deposit | LTV | Rate tier | Notes |
|---|---|---|---|
| 5% | 95% | Higher rates, limited lenders | Mortgage Guarantee Scheme lenders |
| 10% | 90% | Good — many lenders | Most mainstream lenders compete here |
| 15% | 85% | Better rates | Access to most competitive fixed deals |
| 20%+ | 80% or less | Best rates available | Significant monthly saving vs 95% LTV |
L&C is the UK's largest fee-free mortgage broker, accessing deals from over 90 lenders including exclusive rates not available direct. Their online mortgage finder handles the whole process and their FTB service includes dedicated advisers who explain each stage — from Agreement in Principle to completion. They earn a procuration fee from the lender, so you pay nothing.
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Habito's entirely digital process is well-suited to first-time buyers who prefer to research online at their own pace. The chatbot-guided application is among the best in the market, and Habito's advisers are available online or by phone. Their Habito Plus service offers end-to-end buying support (for a fee) including conveyancing — useful if you want everything managed in one place.
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Mojo's online tool is particularly strong for first-time buyers who want to compare deals themselves before speaking to an adviser. The platform shows real rates from real lenders based on your profile, giving a clear picture of what you can actually borrow and at what cost. Advisers are available for the full application process at no charge.
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Nationwide has one of the most competitive 5% deposit mortgage ranges for first-time buyers and consistently ranks highly for FTB lending. Their Helping Hand mortgage allows eligible FTBs to borrow up to 5.5× income (vs the typical 4.5× income multiple). Applying direct can make sense once you know the market rate — but compare broker options first.
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Halifax is one of the UK's largest mortgage lenders and participates in the Mortgage Guarantee Scheme for 95% LTV lending. They offer competitive rates across a wide range of property types including new builds — an area where some lenders restrict lending. Halifax's extensive branch and broker network makes them widely accessible for first-time buyers.
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L&C broker to compare all Mortgage Guarantee Scheme lenders, then consider Nationwide Helping Hand if income multiple is the issue.
Habito or Mojo — full digital process, good rate comparison, no fee. Check Halifax direct if rates are competitive.
L&C — brokers have access to specialist lenders who treat self-employed income more favourably than high-street banks.
Halifax or L&C — some lenders restrict lending on new builds; Halifax and Nationwide are consistently accommodating.
The minimum deposit for most mainstream mortgages is 5% of the purchase price. At 5% (95% LTV), your rate will be higher and lender choice limited. A 10% deposit (90% LTV) opens up significantly more deals at lower rates. A 15% deposit (85% LTV) typically gives access to the best rates on the market. Each additional 5% of deposit reduces your monthly payment and improves your rate.
Yes, for most first-time buyers a whole-of-market broker is strongly recommended. They access deals not available directly from lenders, match your specific profile to the right lender, and handle the paperwork. Brokers like L&C and Habito charge no fee to you — they earn a procuration fee from the lender. An independent broker can typically save you thousands in interest over a 2–5 year fixed term.
First-time buyers in England and Northern Ireland pay 0% stamp duty on the first £300,000 of a property up to £500,000. On properties between £300,000 and £500,000, a 5% rate applies on the portion above £300,000. Properties over £500,000 attract standard rates with no FTB relief. Scotland and Wales have different rules.
The Mortgage Guarantee Scheme enables lenders to offer 95% LTV mortgages with a government guarantee on a portion of the loan. The scheme supports buyers purchasing properties up to £600,000 with a 5% deposit. Participating lenders include Halifax, Barclays, HSBC and NatWest. It does not change the cost of the mortgage — it simply encourages lenders to offer 95% LTV deals they might otherwise avoid.