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Buying Budget

The UK first-time buyer guide

What you need, what it costs, and what actually happens — written for people buying their first home, not for people who already work in mortgages.

Last reviewed 21 August 2026

How much deposit do you need?

A 5% deposit is the usual minimum, but the deposit is not just a hurdle — it directly changes your loan-to-value, and lenders price in bands. Moving from 90% to 85% LTV, or 85% to 80%, can change the rate you are offered. Our deposit calculator shows what each level costs, and the LTV calculator shows how close you are to the next band.

What lenders actually look at

  • Gross income, including how much bonus or overtime they will count.
  • Regular credit commitments — loans, car finance, credit card balances.
  • Committed spending such as childcare, and the size of your household.
  • Whether the payment stays affordable at a higher stress-test interest rate.
  • Credit history, deposit source, and the property itself.

This is why an income multiple alone is only ever an indication. Our affordability calculator shows a range and a stress-tested payment for that reason.

The costs beyond the deposit

Property transaction tax (SDLT, LTT or LBTT depending on where you buy), conveyancing, searches and Land Registry, a survey, lender arrangement and valuation fees, removals and the first round of furnishing. Together these routinely run into thousands of pounds. Add them up on the first-time buyer costs calculator.

Step by step, offer to keys

  1. Work out your budget. Use the affordability calculator to get a borrowing range and a realistic property budget before you view anything.
  2. Save the deposit and the costs. Budget for the deposit plus tax, legal fees, survey, lender fees and moving. The buying costs calculator adds these up.
  3. Get a mortgage in principle. An indication from a lender, not a guarantee. Ask whether the application uses a soft or hard credit search.
  4. View and make an offer. The legal process differs across the UK. In Scotland, the binding stage is normally conclusion of missives; ask your solicitor before making commitments.
  5. Apply for the mortgage. The lender values the property, checks affordability properly and issues a formal mortgage offer.
  6. Conveyancing and searches. Your solicitor checks title, leases, planning and local searches, and raises enquiries with the seller.
  7. Exchange and complete. You pay the deposit at exchange and become legally committed; completion is when the money moves and you get the keys.

Where the UK differs

Property tax, the legal process and the point at which an offer becomes binding are not the same across the UK. Scotland uses LBTT and a different conveyancing process; Wales uses LTT and has no separate first-time buyer relief; England and Northern Ireland use SDLT. Our stamp duty calculator applies the rules for the jurisdiction you choose.

A practical budget check before viewing

Imagine a £250,000 target price with a £25,000 deposit. The mortgage would be £225,000, but that arithmetic says nothing about whether the monthly payment fits your take-home income. List council tax, utilities, insurance, travel, food, childcare and debt payments separately. Then price legal work, a survey and moving, using the tax rules for the nation where the property sits. Keep a reserve outside the deposit rather than assuming the last pound of savings can go to the seller.

Documents and questions to prepare

  • Ask the lender what evidence it needs for salary, self-employed income, variable pay and existing debts.
  • Keep evidence of the deposit source; ask how a gift from family must be documented.
  • Ask the conveyancer for an itemised quote including VAT, searches and leasehold extras.
  • Ask what a lender valuation covers and whether a separate survey is appropriate for the property.
  • Before a legally binding commitment, check the mortgage offer conditions, survey issues and the legal timetable with your solicitor.

A mortgage offer does not resolve legal-title problems, and an accepted offer does not mean a mortgage is guaranteed. In Scotland, a Home Report is normally provided for homes being marketed, subject to exemptions; read it and ask your adviser which additional checks are needed. Avoid paying for duplicated work without checking what is already available.

Sources and further checks

This guide is general information, not a lender checklist. Use MoneyHelper's mortgage application guide, GOV.UK's buying and selling guide and mygov.scot's Scottish buying guide for the process. The linked tax authorities on our tax calculator are the source for current thresholds.

This is general information

This guide describes how the process generally works. It does not take your circumstances into account and is not advice. For a recommendation, speak to an FCA-regulated mortgage adviser or a qualified conveyancer.

First-time buyer questions

What is the minimum deposit for a first-time buyer?

Most UK lenders require at least 5% of the purchase price, though the choice of deals and the rates available generally improve at 10%, 15% and 25%.

How long does buying a house take in the UK?

From offer accepted to completion commonly takes around two to four months, though chains, leasehold enquiries and survey issues can extend it considerably.

What is a mortgage in principle?

An indicative statement of what a lender might lend. The lender may use a soft or hard credit check, so ask before applying. It is not a mortgage offer; the full application and property assessment can change the result.

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