Thinking of Buying Your First Home in the UK? Watch This After the Base Rate Cut #ukmortgages

A Massive Opportunity for First-Time Buyers in 2026

The Bank of England has just dropped the base rate.
The FCA has relaxed rules to help first-time buyers.
More and more banks are introducing schemes designed specifically to support people getting onto the property ladder.

The property market isn’t skyrocketing, and interest rates are far better than they were two years ago.
All of this creates a huge opportunity for first-time buyers in 2026.

I’ve been where you are.

I was once a first-time buyer myself, trying to get onto the property ladder. Today, I’m here to help you do the same by sharing the lessons and insights I’ve gained over the years.

Who Am I?

My name is Ishtikar Muhammad.
I’m a mortgage broker with over a decade of experience in the industry, and I’ve helped more than 4,000 people successfully through their mortgage applications.

My goal is simple: to help you, the first-time buyer, turn your property dream into reality.

Why the Market Is Favourable Right Now

1. Bank of England Base Rate Cut

The Bank of England has announced a reduction in the base rate.
This means borrowing becomes cheaper for banks.

While mortgage rates are primarily influenced by swap rates rather than the base rate alone, we’ve already seen a downward trend in swap rates. This gives us strong hope that mortgage rates will continue to improve.

Lower rates mean:

• Cheaper mortgages
• Lower monthly repayments
• Better affordability for first-time buyers

2. FCA Rule Relaxations

The FCA has introduced changes aimed at helping people onto the property ladder, particularly first-time buyers.

We are now seeing lenders offer:

• 6.5 to 7 times income in some cases

Traditionally, most lenders offered around:

• 4.5 times income
• 5 times income if you were lucky

For buyers close to London and Greater London, this additional borrowing power can make a huge difference. I work with clients across the UK, but especially in and around London, where affordability is often stretched.

3. Falling Swap Rates = Better Mortgage Deals

Swap rates are continuing to fall, and this directly affects mortgage pricing.

As swap rates drop:

• Mortgage rates improve
• Monthly repayments come down
• Borrowing becomes more accessible

This is another major win for first-time buyers.

Schemes Helping First-Time Buyers

0% Deposit Mortgages

Some lenders are offering mortgages with no deposit required, although these do come with conditions you need to understand carefully.

5% Deposit Schemes

Many lenders continue to support 5% deposit mortgages.

£5,000 Deposit Mortgages

Certain lenders will allow you to start your mortgage journey with as little as £5,000.

Shared Ownership

Shared ownership can significantly reduce the deposit you need.

For example:

• Property value: £100,000
• Share purchased: 25% (£25,000)
• Deposit required: 10% of £25,000 = £2,500

That’s effectively a 2.5% deposit in real terms.

Developer & Regional Schemes

• Some developers contribute towards your deposit
• Regional Help to Buy–style schemes may still be available

For example, if a 10% deposit is required and the developer contributes 5%, you only need to fund the remaining 5%.

How to Prepare as a First-Time Buyer

1. Focus on Your Credit Score

Lenders offering higher income multiples take on greater risk, so they expect an impeccable credit profile.

Key tips:

• Register on the electoral roll
• Pay all bills by direct debit
• Use credit cards responsibly and pay them off in full
• Avoid unnecessary borrowing

Your credit score matters more than ever.

2. Build Your Deposit (If You Can)

Yes, 0% deposit schemes exist, but they often come with catches.
A 5% deposit makes things easier.
A 10% deposit opens up many more lender options.

3. Maximise Your Income

Different lenders assess income differently.

For example, NHS staff may have basic pay, overtime, and additional allowances.
Some lenders consider these fully, others don’t.

This is where a mortgage adviser can make a huge difference by matching you to the right lender, not just your high street bank.

4. Control Your Spending

Lenders closely examine your bank statements.

Things that raise concerns:

• High entertainment spending
• Gambling transactions

Reducing unnecessary spending can significantly improve your mortgage affordability.

5. Use a Lifetime ISA (LISA)

The Lifetime ISA is still available.

• You save money
• The government adds a 25% bonus
• It’s essentially free money towards your first home

If you’re eligible, it’s an opportunity you shouldn’t miss.

Final Advice: Plan Early

Planning is everything.

There are brokers who can help you plan your journey step by step, and we are one of them. We don’t just arrange mortgages—we mentor first-time buyers and guide them through the entire process.

Get in Touch

If you’d like help or have questions:

• Call us on 0203 1 619 86
• Our contact details are provided below

I’ve helped over 4,000 first-time buyers get onto the property ladder, and we’d love to help you too.

Thank you very much for watching.