First time buyers can defer interest payments for up to 2 months
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A smart option for some first-time buyers

I see it time and again with first-time buyers: the excitement of getting the keys is often followed by a few financially tight months. Moving from renting to owning isn’t cheap. There can be overlap between rent and mortgage payments, plus solicitors’ fees, removals, furniture, white goods, deposits — and of course stamp duty for some buyers. It all lands at once.

Because of that, there are now mortgage options available that allow repayments to be delayed for the first two months after completion. In the right circumstances, this can give buyers some much-needed breathing space while they settle into their new home.

It’s a simple idea, but when used properly, it can make those early months far less stressful.

How this type of mortgage works

Repayments can be delayed for up to two months
No mortgage payments are required for the first one or two months after completion. Interest still accrues from day one, but there’s no monthly payment during that initial period.

Fixed-rate certainty
These mortgages are typically available on fixed rates, commonly over two or five years, giving buyers stability once repayments begin.

High loan-to-value options
In some cases, buyers can borrow up to 95% of the property value, meaning a 5% deposit may be sufficient.

Important things to understand

This type of mortgage isn’t for everyone, and it’s important to go in with eyes open:

  • At least one applicant must be a genuine first-time buyer — meaning they’ve never owned or had a legal interest in a residential property anywhere, including inherited or buy-to-let property.
  • Although payments are delayed, interest is added from day one. That interest is calculated daily and added to the mortgage balance, so the overall cost over time will be slightly higher.
  • If a buyer can comfortably afford to make payments straight away, a standard mortgage will usually be more suitable and cheaper in the long run.
  • Overpayments are usually allowed — often up to 10% of the original loan each year — including during the delayed period, without penalty.
  • These mortgages can be suitable for new-build purchases, but each case needs checking carefully.
  • Some versions can be paired with specific affordability-support features, but they generally can’t be combined with government schemes, which is something I always check upfront.

My honest view

A delayed-start mortgage can be a very sensible short-term tool for the right buyer — particularly where cash flow is tight in the early months but improves once things settle. It’s not a free lunch, and it shouldn’t be used unless there’s a clear reason for it.

This is where proper advice matters. My job is to look at the whole picture — affordability, future plans, and long-term cost — and make sure the solution fits the person, not just the purchase.

If you’re a first-time buyer and wondering whether this kind of option could work for you, it’s well worth having a conversation before making any decisions.

Ian Rogers
C A Mortgage Services, South Wales

Director, C A Mortgage Services Ltd

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Ian Rogers: 07780925185