Buying your first home in 2026 is a more complex financial decision than it was five years ago. Higher mortgage rates have increased monthly payments. Average house prices remain elevated relative to incomes. And the landscape of government schemes has changed significantly — Help to Buy ended in 2023, and the replacement options work very differently.
This hub gives first-time buyers a clear picture of what they actually need: how much deposit, what schemes genuinely help, what the full upfront costs are, and how to approach the mortgage process.
How Much Do You Need to Buy in 2026?
The deposit is usually the headline figure, but it is only part of what you need on day one.
Total Cash Required: Worked Examples
| Purchase price | 5% deposit | 10% deposit | Buying costs (est.) | Total at 5% | Total at 10% |
|---|---|---|---|---|---|
| £200,000 | £10,000 | £20,000 | £5,500–£8,000 | £15,500–£18,000 | £25,500–£28,000 |
| £250,000 | £12,500 | £25,000 | £6,000–£9,000 | £18,500–£21,500 | £31,000–£34,000 |
| £300,000 | £15,000 | £30,000 | £6,500–£10,000 | £21,500–£25,000 | £36,500–£40,000 |
| £400,000 | £20,000 | £40,000 | £8,500–£12,000 | £28,500–£32,000 | £48,500–£52,000 |
First-time buyers pay £0 SDLT on purchases up to £425,000 — saving £11,250 vs standard rates at £425k. Buying costs include conveyancing, survey, mortgage fee, and moving costs.
Average First-Time Buyer Property Prices by Region (2026)
| Region | Average FTB price | 5% deposit | 10% deposit |
|---|---|---|---|
| London | £490,000 | £24,500 | £49,000 |
| South East | £320,000 | £16,000 | £32,000 |
| East of England | £290,000 | £14,500 | £29,000 |
| South West | £265,000 | £13,250 | £26,500 |
| West Midlands | £215,000 | £10,750 | £21,500 |
| North West | £200,000 | £10,000 | £20,000 |
| Yorkshire | £185,000 | £9,250 | £18,500 |
| North East | £145,000 | £7,250 | £14,500 |
| Scotland | £175,000 | £8,750 | £17,500 |
Average FTB prices are approximate — city-level and property-type figures vary considerably.
The 5% vs 10% Deposit Decision
Buying at 5% gets you into the market sooner. Buying at 10% costs less each month. The right answer depends on how long it takes you to save the extra 5% and what happens to rents and house prices in that time.
What 5% Extra Deposit Actually Saves You
On a £250,000 purchase (£237,500 mortgage at 95% LTV vs £225,000 at 90% LTV):
| 5% deposit (95% LTV) | 10% deposit (90% LTV) | Difference | |
|---|---|---|---|
| Mortgage | £237,500 | £225,000 | £12,500 less |
| Indicative rate (5yr fix) | ~5.4% | ~4.9% | 0.5% lower |
| Monthly payment (25yr) | £1,449 | £1,309 | £140/month less |
| Annual saving | — | — | £1,680/year |
If saving the extra £12,500 takes 18 months at £700/month, the rate saving pays it back in approximately 7.5 years. But the lower monthly payment also improves your ongoing budget — a meaningful factor if affordability is tight.
Verdict: If you can save the extra 5% within 12–18 months and rent is manageable, wait for 10%. If it would take 3+ years, or if prices are rising faster than your savings, 5% now may make more sense.
First-Time Buyer Government Schemes in 2026
Help to Buy equity loans ended in England in March 2023. The live schemes in 2026 are:
| Scheme | How it works | Key condition | Best for |
|---|---|---|---|
| Lifetime ISA | Save up to £4,000/yr; 25% bonus (up to £1,000/yr) | Property must be ≤£450,000; must be 18–39 to open | Most first-time buyers saving a deposit |
| First Homes | New-build homes at 30–50% discount | Key workers / local residents; availability varies | Buyers in participating developments |
| Shared Ownership | Buy 10–75% share; pay rent on remainder | Available on new builds and resales | Those who cannot afford full purchase |
| 95% Mortgage Guarantee | Government guarantees lenders against losses on 91–95% LTV | Standard eligibility; for existing properties | Buyers with 5% deposit only |
Lifetime ISA: The Most Widely Useful Scheme
The LISA is the most broadly applicable scheme for first-time buyers. Key facts:
| Feature | Detail |
|---|---|
| Annual allowance | £4,000 |
| Government bonus | 25% — up to £1,000/year |
| Maximum bonus (if opened at 18, used at 40) | £32,000 |
| Property price cap | £450,000 |
| Age to open | 18–39 |
| Withdrawal penalty (non-qualifying) | 25% (loses bonus + ~6.25% of own savings) |
| Both buyers can hold | Yes — doubles the annual bonus to £2,000/year combined |
If you are saving for a deposit and eligible for a LISA, it is almost always worth opening one — even if you only use it for 1–2 years. A couple maximising contributions for 2 years receives £4,000 in free government bonuses.
See: Lifetime ISA Guide
Shared Ownership: When It Helps and When It Does Not
Shared Ownership allows you to buy a share of a home (10–75%) and pay rent on the rest. You need a deposit and mortgage only for your share — making it accessible at lower incomes.
The watch-outs:
- Service charges on leasehold shared ownership properties can be significant (£150–£400/month)
- Rent on the unsold share is typically 2.75–3% of its value annually
- “Staircasing” (buying more shares) involves legal fees each time
- Selling a shared ownership property can be slower — the housing association has first refusal for a period
Shared Ownership works well when full ownership is genuinely unaffordable in your target area. It works less well if the combined mortgage payment + rent + service charge exceeds what a full mortgage on a similar property would cost.
See: Shared Ownership vs Help to Buy UK
First-Time Buyer Stamp Duty Relief
First-time buyers in England pay no SDLT on the first £425,000 of a purchase (provided the property costs £625,000 or less).
| Purchase price | Standard SDLT | First-time buyer SDLT | Saving |
|---|---|---|---|
| £200,000 | £1,500 | £0 | £1,500 |
| £300,000 | £5,000 | £0 | £5,000 |
| £425,000 | £11,250 | £0 | £11,250 |
| £500,000 | £15,000 | £3,750 | £11,250 |
| £626,000 | £21,300 | £21,300 | £0 — no relief |
Above £625,000, no relief is available and full standard rates apply from £1. Both buyers in a joint purchase must be first-time buyers to qualify.
The Full Buying Cost Breakdown
Beyond the deposit, budget for these costs before you start viewing properties:
| Cost | Typical range | Notes |
|---|---|---|
| Conveyancing (solicitor) | £1,800–£3,500 | Includes searches and Land Registry |
| Level 2 survey | £400–£800 | Recommended for all purchases |
| Mortgage arrangement fee | £0–£2,000 | Often added to mortgage |
| Mortgage broker fee | £0–£500 | Many brokers are fee-free |
| Buildings insurance | £150–£400/year | Required from exchange |
| Removal costs | £300–£1,500 | Self-move to professional |
| Stamp Duty | £0 on ≤£425k FTB | — |
| Total extra (FTB, ≤£425k) | £5,000–£10,000 | Excluding deposit |
The most common mistake is saving exactly the deposit and having nothing left for these costs. You need the deposit plus at least £5,000–£7,000 in accessible savings on completion day.
First-Time Buyer Guides in This Cluster
| Guide | What it covers |
|---|---|
| First-Time Buyer Guide UK | Full journey from saving to completion |
| How to Save for a House Deposit UK | Deposit-building strategies and timelines |
| How Much Deposit Do I Need? | Minimum deposit rules and what each level buys |
| First-Time Buyer 5% Deposit Mortgage | 95% mortgage options and trade-offs |
| Help to Buy Alternatives 2026 | What replaced Help to Buy |
| First Homes Scheme UK | Discounted new-build route |
| Shared Ownership vs Help to Buy UK | Part-buy options compared |
| How to Apply for a Mortgage (First-Time Buyer) | Application process for FTBs |
| True Cost of Buying a House UK | Full upfront cost breakdown |
| Home Buying Costs Calculator | Total cost estimator |
| Lifetime ISA Guide | LISA for deposit saving |
For the broader mortgage and property picture, return to Mortgages & Property.