Getting on the property ladder feels harder than ever. Average house prices in England hover around £290,000 while wages haven't kept pace, meaning the deposit alone can take years to save. But first-time buyers do get some genuine advantages — stamp duty relief, access to specific mortgage products, and government schemes designed to help.
Working out what you can afford
Start with the numbers. Most lenders will offer 4 to 4.5 times your annual income. If you earn £35,000, that's roughly £157,500. A couple earning £55,000 combined might get up to £247,500. Then add your deposit to find your maximum purchase price.
But the mortgage multiple is just the starting point. Factor in the monthly repayments: a £200,000 mortgage at 5% interest over 25 years costs about £1,169 per month. Can you manage that alongside council tax, utility bills, insurance, and all the other costs of running a home? Leave some breathing room — life has a habit of throwing unexpected expenses at you.
Saving your deposit
A 5% deposit on a £250,000 property is £12,500. That's achievable but takes discipline. Options to build your deposit:
- Lifetime ISA — save up to £4,000 a year and the government adds a 25% bonus (up to £1,000 per year). Must be aged 18-39 to open one, and the property must cost £450,000 or less.
- Living at home — if you can stay with family while saving, the difference in living costs adds up fast
- Regular savings accounts — some offer higher rates for monthly deposits
- Help from family — parents gifting deposit money is common. Lenders will ask for a letter confirming it's a gift, not a loan.
Stamp duty relief for first-time buyers
First-time buyers pay no stamp duty on the first £425,000. Between £425,001 and £625,000, the rate is 5%. If the property costs more than £625,000, you lose the relief entirely and pay standard rates. On a £300,000 purchase, that's a saving of £2,500 compared to a non-first-time buyer.
Getting a mortgage in principle
Before you start viewing properties, get a mortgage in principle (MIP) from a lender or broker. This is a preliminary assessment confirming how much you're likely to borrow. It's not a guarantee, but estate agents take you more seriously with one, and it gives you a clear budget.
A MIP typically lasts 60-90 days. Getting one involves a soft credit check (which doesn't affect your credit score) and basic information about your income and outgoings.
Choosing a mortgage
As a first-time buyer, you'll have access to most mortgage products on the market. Key decisions:
- Fixed or variable rate? Fixed gives certainty, which is reassuring when you're new to homeownership
- 2-year or 5-year fix? Five-year deals cost slightly more but protect you for longer
- Repayment term — 25 years is standard, but 30 or 35 years reduce monthly payments (at the cost of paying more interest overall)
A whole-of-market mortgage broker can compare hundreds of deals and find the best option for your situation. Many don't charge a fee, earning their commission from the lender instead.
The buying process step by step
- Save your deposit and get a mortgage in principle
- Find a property and make an offer
- Once accepted, instruct a solicitor and apply for the mortgage formally
- Get a property survey (don't skip this — the lender's basic valuation isn't a survey)
- Exchange contracts — you're now legally committed and pay your deposit
- Complete — the mortgage funds transfer, you get the keys
Costs beyond the deposit
Budget for solicitor/conveyancing fees (£1,000-£2,000), survey (£250-£700), mortgage arrangement fee (up to £2,000), removal costs, and immediate spending on the property (boiler service, locks changed, basic furniture). A reasonable estimate for total additional costs on a £250,000 purchase is £3,000-£5,000 on top of your deposit.