In 2026 the first time buyer market is more active than it has been for years. Lenders have widened access to 95% mortgages, the government’s Mortgage Guarantee Scheme is now permanent, and first time buyer stamp duty relief means most buyers outside London pay no stamp duty at all. Tell us about your plans in a couple of minutes and we’ll connect you with a qualified mortgage broker who specialises in first-time buyers. Use our free mortgage finder →
How much deposit do I need to buy a house?
The question every first-time buyer asks first: how much deposit do I need? Most UK lenders accept a minimum 5% deposit, meaning you borrow the other 95% — known as a 95% loan-to-value (LTV) mortgage. A small number of lenders now go further with 98% and even 100% mortgages for eligible first-time buyers, although these come with stricter criteria and higher rates.
The bigger your deposit, the lower your LTV — and the cheaper the mortgage rates you’ll be offered. Lenders price in bands (95%, 90%, 85%, 80%, 75% and so on), so even nudging your deposit over the next threshold can save you money every month.
Deposit required on the average UK first-time buyer home (£226,000, early 2026). Green bar (10%) is a popular savings target that opens up noticeably cheaper mortgage rates than 5%. Every 5% step in deposit moves you into a lower loan-to-value (LTV) band.
Don’t forget the costs on top of your deposit
Your deposit isn’t the only money you need. Budget for solicitor fees, a survey, mortgage fees and moving costs too — typically several thousand pounds. See Section 4 for a full breakdown.
What does a first home cost where you want to buy?
First-time buyer house prices vary hugely by region. Here’s what the typical deposit looks like across the UK:
| Region | Avg. first-time buyer price | 5% deposit | 10% deposit | FTB stamp duty |
|---|---|---|---|---|
| North East England | £139,000 | £6,950 | £13,900 | ✓ £0 |
| Scotland | £155,000 | £7,750 | £15,500 | ✓ £0 (LBTT) |
| UK average | £226,000 | £11,300 | £22,600 | ✓ £0 |
| South East England | £299,000 | £14,950 | £29,900 | ✓ £0 |
| Greater London | £472,000 | £23,600 | £47,200 | ⚡ £8,600 |
If you’re buying in London or the South East, a joint mortgage or a government-backed scheme can make a big difference. Want to know your borrowing power? Read our guide How much can I borrow on a £50,000 salary?
The home buying process: your first time buyer checklist.
Here’s how to buy a house in the UK from start to finish. From offer accepted to getting your keys, most purchases take around three to four months — though chains, surveys and legal work can make it longer.
| Step | Stage | What happens |
|---|---|---|
| 1 | Check your finances & credit score | Get your credit report, register on the electoral roll, pay down cards and avoid new credit or buy-now-pay-later in the months before you apply. |
| 2 | Save your deposit | Aim for at least 5%, plus extra for fees. A Lifetime ISA can add a 25% government bonus to your savings. |
| 3 | Get a Mortgage in Principle | A mortgage in principle (also called an agreement or decision in principle) shows sellers and estate agents how much a lender is likely to lend you. Mortgage Locator can help you get one. |
| 4 | House hunting & viewings | View properties within budget and check the area, transport links, leasehold terms and EPC rating. |
| 5 | Make an offer | Offer through the estate agent. Being a chain-free first-time buyer with a mortgage in principle strengthens your position. |
| 6 | Full mortgage application | Your adviser submits your application with payslips, bank statements and ID. The lender carries out full affordability checks and a valuation. |
| 7 | Survey | Book an independent survey (e.g. RICS Level 2 or 3) to spot problems before you commit. |
| 8 | Conveyancing | Your solicitor runs searches, raises enquiries and checks the contract. This is usually the longest stage. |
| 9 | Exchange contracts | You pay your deposit and the sale becomes legally binding. A completion date is fixed. |
| 10 | Completion — get your keys! | Funds are transferred and the home is yours. Stamp duty (if any) must be paid within 14 days. |
Get your Mortgage in Principle sorted early
Sellers take buyers with a mortgage in principle more seriously. Mortgage Locator connects you with an adviser who can help you get one — and guide you right through to completion. Use our free mortgage finder →
Stamp duty for first time buyers in 2026.
In England and Northern Ireland, first time buyer stamp duty relief means you pay no stamp duty on homes up to £300,000. Between £300,001 and £500,000 you pay 5% only on the portion above £300,000. If the price is over £500,000, you lose the relief entirely and pay standard rates on the whole amount.
To qualify, every buyer must be a first-time buyer who has never owned a home anywhere in the world, and the property must be your main residence.
Stamp Duty Land Tax payable by purchase price, 2026 rates (England & NI). First-time buyer relief: 0% up to £300,000 and 5% on the portion from £300,001 to £500,000. Above £500,000 the relief is lost completely and standard rates apply to the whole price. Scotland (LBTT) and Wales (LTT) have their own rules.
| Purchase price | First-time buyer | Standard buyer | You save | Summary |
|---|---|---|---|---|
| £200,000 | £0 | £1,500 | £1,500 | ✓ Pay nothing |
| £250,000 | £0 | £2,500 | £2,500 | ✓ Pay nothing |
| £300,000 | £0 | £5,000 | £5,000 | ✓ Pay nothing |
| £350,000 | £2,500 | £7,500 | £5,000 | ⚡ 5% above £300k |
| £400,000 | £5,000 | £10,000 | £5,000 | ⚡ 5% above £300k |
| £450,000 | £7,500 | £12,500 | £5,000 | ⚡ 5% above £300k |
| £500,000 | £10,000 | £15,000 | £5,000 | ⚡ 5% above £300k |
| £550,000 | £17,500 | £17,500 | — | ⚠ Relief lost above £500k |
Buying in Scotland or Wales?
Scotland charges Land and Buildings Transaction Tax (LBTT), with first-time buyers paying nothing up to £175,000. Wales charges Land Transaction Tax (LTT), where the first £225,000 is tax-free for all buyers and there is no separate first-time buyer relief.
The real cost of buying your first home.
Many first-time buyers focus only on the deposit. Budgeting for these house buying costs up front avoids nasty surprises close to completion. Figures below are typical ranges and will vary by property and provider.
| Cost | Typical amount | What it’s for |
|---|---|---|
| Solicitor / conveyancing | £1,500 – £2,500 | Legal work to transfer ownership, including local searches and Land Registry fees. |
| Survey | £400 – £1,500 | An independent check of the property’s condition. Level 3 surveys cost more but are recommended for older homes. |
| Mortgage product fee | £0 – £1,500 | Charged by some lenders on their lowest-rate deals. Can often be added to the loan. |
| Valuation & booking fees | £0 – £500 | Many first-time buyer mortgages include a free valuation. |
| Stamp duty | £0 for most FTBs | Only payable on first homes above £300,000 in England & NI. |
| Removals & setting up home | £300 – £1,500+ | Removal van, furniture, white goods and connecting utilities. |
| Buildings insurance | Varies | Usually required by your lender from exchange of contracts. |
First time buyer schemes in 2026.
There are several first time buyer schemes designed to help you get on the property ladder with a smaller deposit or lower costs. Here’s where things stand in 2026:
| Scheme | Helps with | Key details |
|---|---|---|
| Mortgage Guarantee Scheme (“Freedom to Buy”) | 5% deposit | Made permanent in July 2025. Government-backed guarantee encourages lenders to offer 95% mortgages on homes up to £600,000. You apply for a 95% mortgage as normal — there’s no separate application. |
| Lifetime ISA (LISA) | Saving your deposit | Open at 18–39 and save up to £4,000 a year with a 25% government bonus (up to £1,000 a year). Use it on a first home up to £450,000. Due to be replaced by a new First Time Buyer ISA from around April 2028 — existing LISAs can carry on. |
| Shared Ownership | Smaller mortgage | Buy a share of a home (often 10%–75%) and pay rent on the rest. You can usually buy more shares over time (“staircasing”). |
| First Homes (England) | Discounted price | Discounts on selected new-build homes for local first-time buyers. Availability is limited — check with your local council or developer. |
| Help to Buy ISA | Existing savers only | Closed to new savers, but existing holders can keep paying in until November 2029 and claim the 25% bonus until December 2030. |
| Guarantor & Joint Borrower Sole Proprietor | Borrowing power | A parent or family member supports your application with their income, savings or property to help you borrow more. |
Which scheme is right for you?
There’s no single “best” first time buyer scheme — it depends on your deposit, income and where you want to buy. Not every lender offers every product, which is exactly where a first time buyer mortgage broker adds value. Mortgage Locator can connect you with an adviser who knows which lenders suit your situation.
How to improve your chances of mortgage approval.
Lenders look at far more than your salary. Before you apply for a first time buyer mortgage, these steps can boost your chances of approval and help you secure a better rate:
- Check your credit report with all three main agencies and correct any errors.
- Register on the electoral roll at your current address — it helps lenders confirm your identity.
- Keep three months of clean bank statements — avoid overdrafts, gambling transactions and large unexplained transfers.
- Avoid new credit, including car finance and buy-now-pay-later, in the run-up to your application.
- Reduce existing debts — lower monthly commitments mean lenders can offer you more.
- Get your paperwork ready: ID, three months’ payslips, P60, and two to three years’ accounts or SA302s if you’re self-employed.
- Speak to an adviser early — they can spot potential issues before a lender does.
Why use Mortgage Locator to find your first time buyer mortgage broker?
Going straight to your bank means you only see that bank’s deals. Mortgage Locator is built to help first-time buyers find the right mortgage without the legwork — by connecting you with qualified, FCA-regulated mortgage brokers and advisers who compare options across the market for you.
The right expert
Tell us about your plans once. We’ll connect you with an adviser experienced in first time buyer mortgages — no need to approach lenders one by one.
More lenders
Advisers can access deals and lenders you won’t find on the high street, including specialist first-time buyer and 95% products.
Mortgage in Principle
Get your mortgage in principle in place early, so you can view homes and make offers with confidence.
Through to completion
From application to getting your keys, your adviser chases the lender and keeps your purchase moving.
Not-so-simple situations
Self-employed, contractor, new job, bonuses, or a less-than-perfect credit history? The right adviser knows which lenders will say yes.
Make it go further
Find out whether a Lifetime ISA, Mortgage Guarantee Scheme, joint mortgage or guarantor route could help you buy sooner.
First time buyer FAQs.
How much deposit do I need as a first time buyer in 2026?
Do first time buyers pay stamp duty?
What is a mortgage in principle and why do I need one?
How long does it take to buy a house as a first time buyer?
Should I still open a Lifetime ISA in 2026?
Can I buy a house with my partner or a friend?
What is the Mortgage Guarantee Scheme?
Do I need a mortgage broker as a first time buyer?
Your home may be repossessed if you do not keep up repayments on your mortgage.
This guide is for general information only and does not constitute financial advice. Figures are illustrative and correct to the best of our knowledge as of September 2026, based on published data including UK Finance, Halifax, Nationwide, HMRC and government scheme information. Stamp duty rates apply to England and Northern Ireland; Scotland and Wales have separate property taxes. Scheme availability, lender criteria and interest rates change regularly — always confirm with a qualified mortgage adviser before making decisions. Think carefully before securing other debts against your home.