First-Time Buyer Guide

Key numbers for 2025/26

The buying process — step by step

• 1
  Work out what you can afford

  Start with your take-home pay and existing outgoings. Lenders typically offer 4–4.5× your salary, but affordability checks look at your full financial picture — so knowing your net income and monthly budget matters. Check your take-home pay →

• 2
  Save your deposit

  Most first-time buyers need at least 5% of the property price. A 10% deposit unlocks significantly better mortgage rates. Use the savings goal calculator to work out how long it will take based on what you can save each month. Calculate your savings timeline →

• 3
  Maximise your deposit with a LISA or Help to Buy ISA

  If you have a Lifetime ISA, the government tops up every £4 you save with £1 — up to £1,000 bonus a year. If you have a legacy Help to Buy ISA, you can still earn the 25% bonus (up to £3,000 total) on your savings. Calculate your Help to Buy ISA bonus →

• 4
  Understand your mortgage costs

  A mortgage calculator shows your monthly repayments, total interest, and how different rates or terms affect your costs. Run the numbers with a few different scenarios before speaking to a broker. Calculate mortgage repayments →

• 5
  Calculate your stamp duty bill

  First-time buyers pay no SDLT on the first £300,000 of a purchase price (from 1 April 2025). Above that, 5% applies up to £500,000 — after which standard rates kick in and FTB relief disappears. This cost is due on completion and is separate from your deposit. Calculate your stamp duty →

• 6
  Budget for the other upfront costs

  Beyond the deposit and stamp duty, you'll need to budget for solicitor/conveyancing fees (£1,000–£2,000), a mortgage survey, and potentially a mortgage arrangement fee. First-time buyers should typically set aside an extra 3–5% of the purchase price for these costs. Plan your budget →

• 7
  Consider overpaying once you're in

  Even small overpayments can dramatically cut the total interest you pay and reduce your mortgage term by years. Many fixed-rate mortgages allow up to 10% overpayment per year without penalty. See the impact of overpaying →

All the calculators you need

Other upfront costs to budget for

The deposit and stamp duty are the biggest costs, but not the only ones. Budget for:

• Solicitor / conveyancer: £1,000–£2,500 — handles the legal transfer of ownership, searches, and contracts
• Mortgage arrangement fee: £0–£2,000 — some lenders charge this; cheaper rates sometimes come with higher fees
• Mortgage valuation: £150–£1,500 — the lender's own check on the property's value (some lenders offer this free)
• Homebuyer survey: £400–£1,000 — strongly recommended; identifies structural issues before exchange
• Buildings insurance: Required from exchange of contracts; budget ~£150–£300/year
• Removal costs: £300–£1,500 depending on volume and distance
• CHAPS transfer fee: ~£25–£50 for the mortgage funds transfer on completion day

As a rule of thumb, budget an additional 3–5% of the purchase price on top of your deposit to cover these costs.

First-time buyer stamp duty — what changed in 2025

The temporary stamp duty thresholds introduced in September 2022 expired on 31 March 2025. From 1 April 2025, the first-time buyer stamp duty relief reverted to the pre-holiday levels:

• 0% on the first £300,000 (was £425,000 until 31 March 2025)
• 5% on £300,001 to £500,000
• Standard rates apply above £500,000; FTB relief disappears entirely

The standard zero-rate threshold also returned to £250,000 from £0 (it was temporarily nil under the holiday). Use the Stamp Duty Calculator to get your exact figure.

Should I buy now or keep renting?

This is rarely a simple maths question — it depends on house prices in your area, how long you plan to stay, current mortgage rates, and your personal circumstances. That said, the numbers matter. Our Rent vs Buy Calculator models the long-term wealth outcome under both scenarios, accounting for:

• Property equity growth vs investing your deposit in the stock market
• Mortgage repayments vs rent payments
• Upfront buying costs (stamp duty, legal fees) amortised over your ownership period
• Annual maintenance costs and their effect on net returns

It produces a crossover point — the year at which buying becomes financially better than renting — so you can see whether your intended timeline makes buying worthwhile.

Disclaimer

The figures and calculators on this page are for general guidance only and do not constitute financial or mortgage advice. Mortgage eligibility, rates, and terms depend on your individual circumstances and are subject to lender assessment. Always consult a whole-of-market mortgage broker and a qualified solicitor before purchasing property. See our full Disclaimer.

Frequently Asked Questions