Buying your first home is exciting. It's also terrifying, confusing and more expensive than you think. Not because the house costs too much (though it probably does), but because nobody tells you about the other £3,000–£5,000 in costs that land on your lap before you even get the keys.
This guide covers everything you actually need to know: stamp duty relief, how much deposit you need, the fees nobody warns you about, and a full worked example so you can see real numbers.
Good news first. As a first-time buyer, you get a decent stamp duty discount. Here's how it works:
| Purchase Price Portion | Stamp Duty Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Over £500,000 | No FTB relief — standard rates apply |
So if you buy a property for £300,000 or less, you pay zero stamp duty. Buy at £400,000 and you pay 5% on the £100,000 above £300,000 — that's £5,000. But if the property is over £500,000, you lose the relief entirely and pay the normal rates like everyone else.
Use our stamp duty calculator to check the exact figure for your purchase price — it includes first-time buyer relief and a full cost breakdown.
The minimum is 5%. Some lenders will let you buy with just that. But here's the reality:
On a £300,000 property, that's £15,000 at 5%, £30,000 at 10%, or £45,000 at 15%. Big numbers, yes. But the difference in interest rates between a 90% and 85% LTV mortgage can save you thousands over the term.
Work out your deposit target before you start viewing properties.
Most lenders will offer between 4 and 4.5 times your annual income. Some stretch to 5x in certain circumstances, but don't bank on it.
If you earn £35,000, expect to borrow somewhere around £140,000 to £157,500. Buying with a partner on £35,000 each? That's a combined income of £70,000, so roughly £280,000 to £315,000.
Lenders also stress-test your finances. They look at your outgoings, debts, credit score and spending habits. Having a clean credit file and low commitments makes a real difference.
Check what a lender might offer before you commit to a price range.
This is where first-time buyers get caught out. The deposit and stamp duty are obvious. These aren't:
Add it all up and you're looking at £2,000 to £4,000 on top of your deposit. Budget for it. Use the moving costs calculator to total everything up.
Eligible UK residents aged 18 to 39 can open a Lifetime ISA, with contributions of up to £4,000 a tax year and a 25% government bonus. Check eligibility and withdrawal conditions before choosing it for a deposit.
For a qualifying first-home withdrawal, the property must cost £450,000 or less and the account must normally have been open for at least 12 months. Withdrawals from age 60 and qualifying terminal-illness withdrawals can also be charge-free. Other withdrawals normally incur a 25% charge on the amount withdrawn. See GOV.UK withdrawal rules.
Allow for the 12-month account condition when planning a first-home purchase; check that the product and withdrawal restrictions fit your circumstances.
Here's the rough timeline from "I want to buy" to "I have the keys":
The whole process typically takes 8 to 12 weeks from offer accepted to completion. Sometimes longer if there's a chain.
Once you're in, the spending doesn't stop:
Let's put real numbers on this. You're buying a £300,000 flat. You've saved a 10% deposit. Here's what you need:
| Cost | Amount |
|---|---|
| Deposit (10%) | £30,000 |
| Stamp duty (FTB relief) | £0 |
| Solicitor / conveyancing | £1,200 |
| Survey (HomeBuyer Report) | £450 |
| Land Registry | £270 |
| Removals | £400 |
| Total upfront cash needed | £32,320 |
So you need about £32,000 in the bank, not just the £30,000 deposit. That extra couple of thousand catches people off guard every single time.
Your mortgage would be £270,000. On a 25-year term at, say, 4.5%, monthly repayments would be roughly £1,500. Add council tax, insurance and a service charge and your real monthly housing cost is closer to £1,800–£1,900.
Enter your property price and deposit to see stamp duty, fees and total upfront costs.