Buying a first home comes down to four questions: how big a deposit you can save, what mortgage that deposit gets you, which schemes you qualify for, and what the purchase costs on top of the deposit. This page answers each briefly and links to the guide that covers it in full.
How much deposit you need
Most mortgages need a deposit of at least 5% of the price, and a bigger deposit gets a lower rate. In July 2026 the average price first-time buyers in Great Britain paid was £229,302, so a 5% deposit on that would be £11,465 and a 10% deposit £22,930. See how much deposit you need for other prices and how to save for a house deposit for where to keep it.
A 5% deposit against 10%
A bigger deposit usually gets a lower rate as well as a smaller loan. In August 2026 the Bank of England’s average 2-year fixed rate was 5.52% for a 95% mortgage (5% deposit) and 5.16% for a 90% mortgage (10% deposit). What that means for the monthly payment, and the risks of a small deposit, are in buying with a 5% deposit.
Schemes that help first-time buyers
| Scheme | What it does | Where |
|---|---|---|
| Lifetime ISA | 25% government bonus on up to £4,000 a year, for a first home up to £450,000 | UK |
| First Homes | 30% to 50% off the market value of certain new homes | England |
| Shared ownership | Buy a 10% to 75% share and pay rent on the rest | UK (different rules in each nation) |
| 5% deposit mortgages | Backed by the government’s permanent Mortgage Guarantee Scheme since July 2025 | UK |
| Right to Buy | A discount for council tenants buying their home | England |
The Help to Buy equity loan and Help to Build are closed to new applications in England, and new Help to Buy ISAs can’t be opened. All the options side by side: Help to Buy alternatives.
First-time buyer stamp duty relief
First-time buyers in England and Northern Ireland pay no SDLT on the first £300,000 and 5% on the rest up to £500,000, but only if the price is £500,000 or less and every buyer is a first-time buyer who will live there as their only or main home. On a £300,000 first home that’s £0, against £5,000 for someone who has owned before. Scotland and Wales have their own rules: see the stamp duty calculator.
Costs on top of the deposit
Besides the deposit (and any stamp duty), expect to pay for conveyancing, a survey, any mortgage arrangement fee and the move itself. Our guide to the cost of buying a house goes through each, and the first home money checklist puts them in the order you’ll pay them.
Before you start viewing
A mortgage in principle (also called an agreement or decision in principle) is a lender’s statement of how much it would probably lend you, based on a quick look at your income and credit record. Estate agents often ask for one before they put your offer forward. It isn’t a mortgage offer: the lender still checks everything properly when you apply.
In England and Wales an accepted offer isn’t binding until contracts are exchanged, so either side can still pull out. A seller accepting a higher offer from someone else at that stage is called gazumping; a buyer cutting their offer just before exchange is gazundering.
Most flats in England and Wales are leasehold: you own the home for the length of the lease and usually pay ground rent and a service charge to the freeholder. Houses are more often freehold, where you own the building and the land. Check how many years are left on a lease before you offer: as a lease gets shorter the home’s value can fall, especially below 80 years, and many lenders are reluctant to lend when less than 80 years are left.
First-time buyer guides
| Guide | What it covers |
|---|---|
| First home money checklist | A checklist for each stage, from saving to completion day |
| How to save for a house deposit | Where to keep a deposit and how long saving takes |
| Buying with a 5% deposit | 95% mortgages and the Mortgage Guarantee Scheme |
| Help to Buy alternatives | The schemes that help first-time buyers now, compared |
| Shared ownership explained | Buying a share, paying rent on the rest and staircasing |
| The First Homes scheme | Discounted new homes for first-time buyers |
| Help to Build | The closed self-build equity loan, and the options now |
| Right to Buy | Buying your council home at a discount |
| Helping your child buy a home | Gifts, loans, guarantor and family mortgages |
| Buying a home with a partner | Joint mortgages, unequal deposits and splitting up |
| Joint tenants vs tenants in common | The two ways to co-own a home |
Related guides elsewhere on the site: how much deposit you need, how to apply for a mortgage as a first-time buyer, the true cost of buying a house, the Lifetime ISA guide and the stamp duty calculator.
For the broader mortgage and property picture, return to Mortgages & Property.