How much money do you need as a first-time buyer?

In 2026, most first-time buyers need a minimum 5% deposit. For example, a £250,000 property would require at least £12,500. However, a 10% deposit or higher usually provides access to better mortgage rates and lower monthly payments.

In addition to the deposit, buyers should budget for legal fees (typically £1,000–£1,500), survey costs, potential mortgage arrangement fees and moving expenses. Stamp Duty may not apply if the purchase falls within first-time buyer relief thresholds.

Lenders assess affordability based on income, credit history and monthly commitments. Securing an Agreement in Principle before house hunting provides clarity on realistic budgets.

Your home may be repossessed if you do not keep up repayments on your mortgage.