Buying your first home involves more numbers than just the mortgage payment. This calculator brings them all together: your monthly repayment, the stamp duty you owe (or do not — most first-time buyers pay none under £300,000), the total upfront cash you need on completion day, and whether the payment looks comfortable, stretched, or tight against your income. All from a single set of inputs.
First-Time Buyer Mortgage Calculator
| Deposit | — |
| Stamp duty (FTB rates) | — |
| Estimated solicitor fees | — |
| Estimated survey cost | — |
| Estimated mortgage arrangement fee | — |
| Removal and setup allowance | — |
| Total cash needed | — |
What your deposit percentage unlocks
Deposit size directly determines your LTV ratio — the single biggest factor in the interest rate a lender offers. Moving from 5% to 10% deposit typically saves £100–200/month on a standard first-time buyer mortgage. Here is the full picture on a £265,000 property.
First-time buyer stamp duty — England 2025
For most FTBs buying under £300,000, stamp duty is zero — saving up to £5,000 compared to a home mover. Here is the full picture.
| Purchase price | FTB stamp duty | Home mover SDLT | FTB saving |
|---|---|---|---|
| Up to £300,000 | £0 | £0–£5,000 | Up to £5,000 |
| £450,000 | £7,500 | £12,500 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
| £550,000 | £17,500 (no relief) | £17,500 | £0 |
| £625,000 | £21,250 (no relief) | £21,250 | £0 |
| Above £500,000 | Standard rates apply | Standard rates apply | No FTB relief |
England and Northern Ireland only. Use our stamp duty calculator for exact figures.
Monthly payments for first-time buyers — reference table
Monthly payments at 4.5% over 30 years across common FTB price points and deposit sizes. A longer 30-year term keeps payments lower for new buyers; see our 25 vs 35 year calculator for the total interest cost trade-off.
| Property price | 5% deposit | 10% deposit | 15% deposit | 20% deposit |
|---|---|---|---|---|
| £150,000 | £720 | £685 | £649 | £614 |
| £200,000 | £960 | £912 | £864 | £817 |
| £250,000 | £1,200 | £1,139 | £1,079 | £1,021 |
| £300,000 | £1,440 | £1,368 | £1,295 | £1,216 |
| £350,000 | £1,679 | £1,595 | £1,519 | £1,434 |
| £400,000 | £1,919 | £1,822 | £1,733 | £1,640 |
Capital repayment at 4.5% over 30 years. Actual rates vary by LTV — a 5% deposit attracts a higher rate in practice.
Three real first-time buyer scenarios
Tom earns £38,000. He has saved £21,000 (10% deposit) and is buying a two-bedroom flat for £210,000.
| Mortgage needed | £189,000 (90% LTV) |
| Monthly payment at 4.65% / 30 years | £973/month |
| Stamp duty (zero under £300k) | £0 |
| Solicitor + survey + fees | ~£3,400 |
| Total cash needed | ~£24,400 |
His £21,000 savings fall £3,400 short. His income multiple at £189,000 is 4.97× — just above the standard 4.5× threshold. Options: save for three more months, accept a gifted deposit top-up from family, or reduce the purchase price to £198,000 (£178,200 loan = 4.69×).
Priya earns £42,000 and James earns £35,000 — combined £77,000. They have saved £29,500 (10% deposit).
| Mortgage needed | £265,500 (90% LTV) |
| Monthly payment at 4.6% / 30 years | £1,361/month |
| Stamp duty (zero under £300k) | £0 |
| Solicitor + survey + fees | ~£3,650 |
| Total cash needed | ~£33,150 |
Income multiple: £265,500 ÷ £77,000 = 3.45× — comfortably within all standard lenders. Monthly payment of £1,361 is approximately 29% of combined net income. They save for two more months and proceed.
Cara earns £85,000 in financial services. She has saved £72,000 (15% deposit). The flat is leasehold with £2,400/year service charges.
| Mortgage needed | £408,000 (85% LTV) |
| Monthly payment at 4.3% / 25 years | £2,213/month |
| Stamp duty (FTB: 5% on £180k above £300k) | £9,000 |
| Solicitor + survey + fees | ~£4,600 |
| Total cash needed | ~£85,600 |
Income multiple: 4.8× — above the standard 4.5× limit. She accesses a professional mortgage at 5× income (max £425,000). Her £72,000 savings fall £13,600 short — topped up by a family gifted deposit. Ongoing service charge of £200/month makes true monthly housing cost approximately £2,413.
The first-time buyer journey — five key steps
- 1Calculate before you view any properties
Use this calculator to model different price points and deposits first. Know your maximum borrowing at 4.5× income, the minimum deposit for a competitive rate (10%), the total cash needed including fees, and what the monthly payment looks like as a percentage of take-home. All of this before a single property viewing.
- 2Get an Agreement in Principle
Before making any offer, obtain an AIP from a lender or broker. Estate agents take buyers more seriously with an AIP in hand and in competitive markets it can determine whether your offer is accepted over a rival’s. It does not guarantee a full mortgage offer but is a necessary step before serious searching.
- 3Check your credit report at all three agencies
Experian, Equifax (ClearScore), and TransUnion (Credit Karma) all hold data that lenders will check. Review all three for errors at least three months before applying. Register on the electoral roll. Correct any errors. Reduce credit card utilisation below 30%. These steps can materially improve the rate you are offered.
- 4Instruct a solicitor and book a survey on the day your offer is accepted
Many first-time buyers wait for the mortgage offer before instructing their solicitor. Instructing on day one runs the legal process in parallel with the mortgage process rather than sequentially, saving four to eight weeks from the overall timeline. Book an independent survey at the same time — it is separate from the lender’s valuation and protects your interests.
- 5Maintain a financial buffer beyond the deposit and fees
Try to keep at least £2,000–3,000 of accessible savings beyond the completion funds. Post-move costs — a boiler, washing machine, curtains, a locksmith — arrive quickly. Moving in with zero financial reserve is one of the most avoidable sources of first-year homeownership stress.
Frequently asked questions
- How much can a first-time buyer borrow in the UK?Most UK lenders apply a 4 to 4.5 times gross annual income multiple. At 4.5×, a sole applicant on £35,000 can borrow up to £157,500. A joint application with combined salaries of £65,000 can borrow up to £292,500. Outgoings, credit history, and the lender’s affordability stress test all affect the final offer. Professional mortgage products for doctors, solicitors, and accountants can offer 5× or 5.5× income.
- How much deposit does a first-time buyer need in the UK?The minimum is 5% of the purchase price. On a £250,000 property that is £12,500. However, 10% is strongly recommended — it typically unlocks a rate 0.5–1% lower than a 5% deposit product, saving considerably more over the term than the extra saving time costs. A 15–20% deposit unlocks the best available rates.
- Do first-time buyers pay stamp duty in the UK?In England, first-time buyers pay no stamp duty on the first £300,000. On properties between £300,001 and £500,000, stamp duty is 5% only on the portion above £300,000. Above £500,000 the relief no longer applies. This saves most FTBs thousands compared to home movers. Use our stamp duty calculator for the exact figure.
- What are the total costs of buying as a first-time buyer?Beyond the deposit, typical costs are solicitor fees (£1,500–2,500), survey (£400–900), mortgage arrangement fee (£0–999), removals and setup (£300–1,000), and buildings insurance. For properties under £300,000 there is no stamp duty. Total additional costs typically range from £3,000 to £6,000. Budget 3–4% of the purchase price on top of the deposit to be safe. See our hidden costs guide for the full breakdown.
- What mortgage term should a first-time buyer choose?Most first-time buyers choose 25 to 35 years. A longer term reduces monthly payments and helps pass the affordability check but costs significantly more in total interest. A 35-year mortgage on £200,000 at 4.5% costs approximately £73,000 more in total interest than a 25-year term. Many FTBs take a 30 or 35-year term initially with a standing order overpayment to reduce the effective term as income grows. See our 25 vs 35 year calculator.
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