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Buying your first home, start to finish

Buying a first home takes three separate pots of money. The deposit is the one everybody saves for. The other two land mid-purchase and cannot go on the mortgage.

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The short answer

You need three pots of money to buy a first home. A deposit of usually 5% to 10%, around £2,000 to £4,000 of buying costs, and a fund for moving in. Most lenders start at four to four and a half times income, then cut that based on your existing commitments.

5%Usual minimum deposit
4 to 4.5xTypical income multiple
£300,000First-time buyer stamp duty threshold
8 to 16 weeksOffer to keys, typically
What is on this page
  1. What you actually need before you start
  2. How much a lender will lend you
  3. Why the deposit percentage matters more than the amount
  4. The help that exists
  5. The order it happens in
  6. The part people leave until last
  7. What goes wrong for first-time buyers

What you actually need before you start

Buying a first home needs three separate pots of money. People plan for one of them and get caught by the other two.

The deposit

Usually 5% to 10%

The share of the price you put in yourself. A larger deposit opens up cheaper interest rates, which is where the real saving is.

The buying costs

Often £2,000 to £4,000

Solicitor, searches, survey, land registry and mortgage fees. These are due during the purchase, not after it.

The moving-in fund

Whatever the house needs

White goods, a bed, paint, a locksmith, the first month of bills. Nobody budgets this and everybody spends it.

Stamp duty is a fourth cost for many buyers, though first-time buyer relief removes it on most purchases. Our stamp duty page has the thresholds.

How much a lender will lend you

Most lenders start at around four to four and a half times income. Some go further for higher earners or particular professions.

Household income Roughly 4x Roughly 4.5x
£30,000 £120,000 £135,000
£45,000 £180,000 £202,500
£60,000 £240,000 £270,000
£80,000 joint £320,000 £360,000

An illustration of typical income multiples, not an offer and not advice. Every lender applies its own affordability test.

The multiple is only the starting point. The affordability check then looks at your outgoings. Car finance, credit cards, childcare and student loan repayments all reduce what you can borrow.

An illustration: two buyers earning £35,000 each applied on the same day. One had £420 a month of car finance. The gap in what the same lender would offer them was over £40,000.

Why the deposit percentage matters more than the amount

Lenders price in bands. The loan to value ratio is the loan as a percentage of the property price. Crossing a band boundary changes the interest rate you are offered.

Deposit Loan to value What it usually means
5% 95% The highest rates, fewest lenders, tightest criteria
10% 90% A noticeably wider choice and better pricing
15% 85% Another step down in rate
25% 75% Close to the sharpest pricing most lenders offer

Bands and pricing move with the market. The pattern of cheaper money at lower loan to value is consistent.

Saving another £3,000 to cross from 90% to 85% can be worth far more than £3,000 over a five-year fix.

The help that exists

Lifetime ISAA 25% government bonus on up to £4,000 a year. There is a property price cap, and taking the money out for anything else carries a charge.
Shared ownershipBuy a share, pay rent on the rest. It lowers the deposit needed, and it brings service charges, rent rises and a harder resale.
First Homes and local schemesSome councils and developers offer discounted purchases with resale conditions. Check what the conditions are before the discount tempts you.
A family gift or guaranteeCommon and legitimate. Lenders need a signed letter confirming the money is a gift and not a loan.
A street of British terraced houses

Want to know what you could actually borrow?

Tell us your income and your commitments. We will introduce you to a mortgage adviser who can give you a real figure.

Ask us a question

Prefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.

This goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

The order it happens in

1

Get your finances tidy

Six months of clean bank statements, on the electoral roll, no missed payments, no new credit.

2

Work out your real budget

Deposit plus costs plus moving-in money. Then look at what a lender would lend.

3

Get a mortgage in principle

A lender's indication of what they would lend. Estate agents ask for it. Our explainer covers what it is and is not.

4

Offer, then instruct a solicitor

Once an offer is accepted, a conveyancer starts searches. Expect eight to sixteen weeks.

5

Survey, then formal offer

The lender values the property. A survey is for you, and on an older home it usually pays for itself.

6

Exchange and complete

At exchange you are committed and you need buildings insurance in place. Completion is when you get the keys.

The part people leave until last

A mortgage is a debt that outlives most jobs. If the income paying it stops, the debt does not.

Three questions decide what cover a household needs. What happens if one of you dies, if one of you cannot work through illness, and if one of you is off for six months with something serious.

This is the part we advise on and arrange ourselves. It is often cheaper than people expect at the age most people first buy.

What goes wrong for first-time buyers

  • Taking out car finance three months before applying
  • Opening a new credit card to build credit just before an application
  • Budgeting for the deposit and forgetting the solicitor and survey
  • Skipping a survey on a Victorian terrace to save £600
  • Assuming a mortgage in principle is a mortgage offer
  • Leaving buildings insurance until completion rather than exchange
A couple painting a wall in their new home

Who this suits, and who it does not

You are ready if
  • You have a deposit plus about £3,000 of costs saved
  • Your income has been steady for at least six months
  • No missed payments in the last twelve months
  • You know roughly what area and price range you want
Wait a while if
  • You took car finance in the last three months
  • Your deposit would leave you with nothing behind it
  • You are about to change jobs or go self-employed
  • You have a default or missed payment inside the last year

Check broadband before you make an offer

Broadband speeds can vary street by street, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.

Check broadband at an address (Ofcom)

Want all your bills in one?

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We don't provide these services ourselves. Switching household bills is not a regulated financial service, so FCA protections and the Financial Ombudsman do not apply. We'll only pass your details to the specialist if you ask us to. See our privacy notice.

Questions people actually ask

How much deposit do I need to buy a first home?
5% is the usual minimum for a standard purchase. 10% opens up a much wider choice of lenders and lower rates, and the saving on interest usually beats the extra saving time.
How much can a first-time buyer borrow?
Most lenders start around four to four and a half times income, then reduce it based on your outgoings. Car finance and credit commitments have a large effect.
Will I pay stamp duty on my first home?
In England and Northern Ireland, first-time buyer relief means no stamp duty on the first £300,000, and 5% between that and £500,000. Above £500,000 the relief does not apply at all.
What credit score do I need for a mortgage?
There is no single pass mark. Lenders score you against their own criteria. What helps most is being on the electoral roll, no missed payments for at least twelve months, and low use of available credit.
How long does buying a house take?
From accepted offer to keys, commonly eight to sixteen weeks. Chains, leasehold properties and slow searches all extend it.
Should I use a mortgage adviser?
An adviser can search across lenders and match you to criteria you would not know about. We do not arrange mortgages ourselves. We introduce you to a separately authorised firm and tell you who they are first.
Can I buy with a friend or sibling?
Yes. Lenders will consider joint applications from people who are not a couple. Get a declaration of trust drawn up setting out shares and what happens if one of you wants out.
What is gazumping and can I stop it?
A seller accepting a higher offer after accepting yours. Nothing is binding until exchange in England and Wales. Moving quickly and being ready to proceed is the main defence.
How do I check broadband speed at a property?
Use Ofcom's free broadband and mobile checker at checker.ofcom.org.uk. Enter the property's postcode and choose the address to see which broadband speeds and mobile coverage are available before you make an offer.

Where to go next

Deposits explainedHow the percentage changes the rate you pay.Stamp duty explainedThresholds, first-time buyer relief and the surcharge.How much can I borrow?Multiples, affordability and what reduces it.What is a mortgage in principle?What it proves and what it does not.Life insuranceCover we advise on and arrange ourselves.MortgagesHow our introduction works.
Where these figures come from

Figures checked on 1 September 2026 and correct for the 2026/27 tax year. Rates change, so check the source before you act on a number.

Mortgage advice goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

Last reviewed September 2026.

Ready to find out where you stand?

Start with a conversation. We will point you at a mortgage adviser, and sort the protection side ourselves.

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Prefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.

This goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.