Money moment · 7 steps · all free
Buying your first home
The deposit, the free government bonus, what you can actually borrow, the tax, and the payment you will live with. One step at a time.
- 1
Set the deposit target
Pick the number and the date, and get the monthly saving that makes it real. A 10% deposit usually unlocks meaningfully better rates than 5%.
Savings goal planner → - 2
Claim the free 25%
A Lifetime ISA adds £1 for every £4 you save, up to £1,000 a year. If the home is under £450,000 and you have a year or more to go, it is the best deal in UK saving.
Lifetime ISA calculator → - 3
Know your ceiling
Lenders cap what you can borrow, and their stress test caps it harder. Get your realistic price range before you fall in love with anything.
Mortgage affordability calculator → - 4
Budget the tax
First-time buyers pay nothing up to £300,000, then it climbs. Know your stamp duty bill so it does not eat the moving fund.
Stamp duty calculator → - 5
Stress-test the payment
See the monthly payment, the total interest, and what happens to both if rates move before you commit to a term.
Mortgage repayment calculator → - 6
Sanity-check the city
What counts as a comfortable salary varies wildly by city. See where your income actually stretches.
Salary needed to live comfortably → - 7
Read the first-time buyer tax rules
The relief has a cliff edge above £500,000 and rules about who counts as a first-time buyer. Worth five minutes before you offer.
How much stamp duty do first-time buyers pay? →
Not sure where you stand overall?
The Money Health Check scores your whole position in three minutes and ranks what to fix first.
Start the health checkCommon questions
- How much deposit do I need for a first home?
- Most lenders start at 5% of the purchase price, but 10% usually gets noticeably better rates. On a £250,000 home that is £12,500 versus £25,000, plus moving costs and the stamp duty above £300,000.
- Is a Lifetime ISA worth it for a house deposit?
- If the property will cost £450,000 or less and you are 18 to 39, almost always yes: the 25% bonus is unmatched. The catch is the withdrawal charge if you use the money for anything else, so only commit money that is genuinely for the home.
- How much can I borrow for a mortgage?
- Roughly 4 to 4.5 times your income is the common ceiling, but affordability checks on your outgoings and a stressed interest rate decide the real figure. Our affordability calculator walks through both.
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