2026 is shaping up to be a more optimistic year for first-time buyers in Liverpool. After several years of economic uncertainty and rising borrowing costs, we’re now seeing renewed confidence in the housing market. Lower mortgage rates, improved affordability, and growing support schemes are giving local buyers the green light to take their first steps onto the property ladder.
At Northwood Liverpool, we’ve been guiding first-time buyers through changing market conditions for years. And right now, we believe there’s a real opportunity for those ready to make a move.
Liverpool mortgage rates first time buyer: what’s changed in 2026?
After the volatility of 2022 to 2024, the mortgage market in 2026 feels like a welcome breath of fresh air. According to the latest figures from Zoopla and Rightmove’s House Price Index, average fixed-rate mortgage deals for first-time buyers have fallen to around 4% to 4.5% for two- and five-year terms. That’s down from peaks of over 6% just a year or two ago.
This reduction means monthly repayments are significantly lower, making homeownership far more achievable for many in Liverpool. Buyers with a solid credit history, a modest deposit, and stable employment are now in a strong position to secure competitive offers from high street lenders.
In fact, some of the most competitive rates right now are targeted at first-time buyers, with banks eager to lend to those entering the market for the first time.
Securing a mortgage L18: local tips for Liverpool first-time buyers
The L18 postcode – which includes popular areas like Allerton, Mossley Hill and Calderstones – has long been a favourite for first-time buyers. With leafy streets, excellent schools, and strong transport links, it’s no surprise that demand here remains high.
If you’re considering buying in L18, preparation is key. Here are a few tips to help you secure the right mortgage in this competitive market:
- Get your paperwork ready early. Lenders want to see proof of income, bank statements, and ID.
- Check your credit score. A better score can lead to better interest rates.
- Be realistic about your budget. Use affordability calculators to understand what you can borrow.
- Speak to a broker or adviser. At Northwood Liverpool, we can connect you with trusted mortgage professionals who specialise in working with local buyers.
Securing a mortgage in L18 isn’t just about getting a good deal. It’s about finding the right home in a location that supports your long-term goals – whether that’s access to work, schools or green space.
Low deposit schemes Liverpool first-time buyers should know
One of the biggest hurdles for first-time buyers is saving for a deposit. But in 2026, there are more options than ever to help you get started with a smaller upfront cost.
Here are a few schemes available to buyers in Liverpool:
- First Homes scheme: Offers eligible buyers properties at a 30% discount. Must be first-time buyers with household incomes under a set threshold.
- Shared ownership: Buy a percentage of the home and pay rent on the rest. A good option for those with lower deposits.
- 95% mortgages: Available from many mainstream lenders, these allow you to buy with just a 5% deposit.
- Local authority support: The Liverpool City Region may also offer specific schemes or grants. These can vary each year, so speak to your agent for up-to-date information.
Northwood Liverpool regularly helps buyers navigate these schemes. If you’re unsure which one might suit your situation, our team can talk you through the pros and cons of each.
Buying a terraced house Liverpool: first-time buyer opportunities
Terraced homes remain one of the most accessible and popular options for first-time buyers in Liverpool. Found throughout the city, especially in areas like Wavertree, Anfield, and Kensington, they offer great value, character, and flexible space.
In 2026, the average price of a two-bedroom terraced house in Liverpool sits between £130,000 and £160,000, depending on location and condition. For buyers using a 95% mortgage, this could mean a deposit of as little as £6,500.
Why choose a terrace as your first home?
- Affordability: Lower purchase price compared to semis or detached homes.
- Location: Many are close to the city centre, universities and transport links.
- Investment potential: A well-maintained terrace can offer excellent resale or rental value in future.
- Community: Terraced streets often come with a strong sense of neighbourhood.
It’s important to have a full structural survey when buying an older property, especially if it hasn’t been modernised. Northwood can recommend trusted local surveyors and contractors.
Liverpool mortgage rates first time buyer: the full cost picture
While securing a lower mortgage rate is a huge win, don’t forget to factor in the other costs of buying a home. Here are a few to plan for:
- Legal fees: Typically £800 to £1500, depending on the solicitor.
- Survey: Basic surveys start at £300, but a full structural survey may cost up to £800.
- Stamp duty: As a first-time buyer in 2026, you’re likely exempt from stamp duty on purchases up to £250,000.
- Moving costs: These can range from £500 to over £1,000 depending on distance and volume.
- Home insurance and mortgage protection: Essential costs that may vary by provider.
Planning for these early on helps reduce stress during your purchase. At Northwood Liverpool, we offer clear guidance on budgeting, so you know exactly what to expect.
Liverpool mortgage rates first time buyer confidence: why now?
There are plenty of reasons why 2026 could be the year to make your move. Here are a few factors boosting buyer confidence in Liverpool:
- Stabilised interest rates: The Bank of England has signalled a period of economic stability, keeping base rates more predictable.
- Reduced inflation: With inflation falling below 3%, household budgets are stretching further.
- Strong demand for housing: Liverpool continues to grow in popularity with professionals, students, and families.
- New developments and investment: Projects like Paddington Village and Liverpool Waters are enhancing job opportunities and city infrastructure.
All of these conditions support a healthy property market, with opportunities for both buyers and sellers.
Northwood Liverpool: guiding first-time buyers through the 2026 market
Buying your first home is a big step. But with the right support, it doesn’t have to feel overwhelming.
At Northwood Liverpool, we understand the local market, the mortgage process, and the challenges first-time buyers face. Our team offers:
- Free mortgage advice through trusted partners.
- Local property recommendations tailored to your needs.
- Viewings and support at times that work for you.
- Ongoing help from first offer to final key handover.
We believe in providing honest, practical advice to help you make confident choices. And if you’re thinking about selling in 2026, our team can offer a free, no-obligation valuation to help you get ahead of the curve.
Ready to take the first step?
With lower mortgage rates, more support for first-time buyers, and fantastic opportunities across Liverpool, there’s never been a better time to explore the market.
Book your free valuation or start your property search with Northwood Liverpool today.
Explore our available homes and learn more about how we can help.
Your first home could be closer than you think. Let’s make it happen.
