First-Time Buyer Guide: Buying Your First UK Home

How much deposit do you need?

Most UK lenders expect a deposit of at least 5% of the property price, and rates usually improve at 10%, 15% and 20%. The deposit sets your loan-to-value (LTV), which is the single biggest lever on the interest rate you are offered.

Use our mortgage calculator to see how a larger deposit changes both the monthly payment and the total interest over the term.

Getting mortgage ready

• Check your credit file with all three UK credit reference agencies and correct any errors.
• Keep spending steady in the three months before you apply.
• Gather payslips, bank statements and proof of deposit early.
• Ask for an agreement in principle before you start making offers.

Costs beyond the deposit

Budget for a valuation or survey, conveyancing, searches, Land Registry fees, removals and any stamp duty due. First-time buyer relief can reduce or remove stamp duty in England and Northern Ireland up to published limits, and the thresholds differ in Scotland and Wales.

Making an offer and exchanging

Once your offer is accepted, your solicitor handles searches and enquiries while your lender completes its valuation. Nothing is legally binding until contracts are exchanged, so keep your mortgage and survey progress moving in parallel.

Before you commit

Work out the monthly payment you would still be comfortable with if rates were higher at the end of your fixed period, not just today's payment.