Buying your first home in the UK is a ten-step process involving a mortgage in principle, a real offer, a solicitor, a survey, and — eventually — keys on the table. This guide walks through the parts that directly affect your numbers: how much you can borrow, what deposit to aim for, what Stamp Duty you'll pay, and the schemes that can make the sums work.
How much can you actually borrow?
UK lenders typically cap borrowing at 4.5× your gross annual salary (4× is common for single applicants, 4.5–5× for joint). A handful — Nationwide's Helping Hand, Halifax First-Time Buyer Boost — go to 5.5×, but require a larger deposit.
Affordability tests will also stress your outgoings — student loans, childcare, credit-card minimums — so a £60,000 salary rarely buys £270,000 in practice. Run your numbers through the Mortgage Affordability Calculator.
LTV bands and what they unlock
Loan-to-Value (LTV) is your mortgage divided by the property price. Lower LTV means a bigger deposit relative to price — and materially better rates.
| LTV | Deposit needed | Typical rate | Product type |
|---|---|---|---|
| 60% | 40% | 4.3% – 4.7% | Best-buy, widely available |
| 75% | 25% | 4.4% – 4.9% | Mass market |
| 85% | 15% | 4.6% – 5.2% | Most common FTB band |
| 90% | 10% | 4.9% – 5.6% | Accessible FTB band |
| 95% | 5% | 5.2% – 5.9% | High-LTV / scheme-backed |
Schemes that stack with a standard mortgage
Lifetime ISA (LISA) is the single biggest boost for most first-time buyers. Put in up to £4,000 per tax year (within your £20,000 ISA allowance) and the government adds a 25% bonus — up to £1,000 per year, tax-free.
Shared Ownership lets you buy 25–75% of a property and pay rent on the rest. Your mortgage is on your share only, making entry possible at much lower deposits.
First Homes scheme (England) offers local first-time buyers a 30–50% discount off market value. Eligibility: income cap £80,000 (£90,000 London), and the discount sticks with the property forever.
Stamp Duty for first-time buyers (2025/26)
From 1 April 2025, first-time-buyer relief applies if the purchase price is ≤ £500,000 (previously £625,000). You pay 0% up to £300,000 and 5% from £300,001 to £500,000. Above £500,000 you lose the relief and pay standard rates on the whole price.
| Band | Portion | Rate | SDLT |
|---|---|---|---|
| Up to £300,000 | £300,000 | 0% | £0 |
| £300,001 – £350,000 | £50,000 | 5% | £2,500 |
| TOTAL | £2,500 |
The 2-3% on top nobody mentions
Beyond the deposit, budget for ~2-3% of purchase price in upfront costs:
- Solicitor/conveyancer: £1,200–£2,500 for a straightforward purchase
- Survey: £400 (HomeBuyer) – £1,200 (full Building Survey)
- Mortgage arrangement fee: £0 – £1,500 (often added to loan — but then you pay interest on it)
- Valuation: sometimes free with the lender; otherwise £200–£400
- Stamp Duty (if applicable, see above)
- Moving costs: £400–£1,500 depending on distance and possessions