First-Time Buyer Guide 2026: Deposits, Mortgages, Stamp Duty, Schemes

Most first-time buyer guides are either too generic ("save more!") or too technical ("MUR3 affordability stress test"). This is the middle: the numbers you'll actually be quoted, the schemes that actually apply, and the order to do everything in.

1. How much deposit you actually need

The minimum is 5% in 2026, available from mainstream lenders for first-time buyers via Help to Buy: Mortgage Guarantee Scheme (which underwrites the lender's risk on the 5%). Realistically, 10% gives you a meaningfully wider product range and better interest rates. The all-in cash needed at completion is deposit + Stamp Duty + legal fees + searches + survey + mortgage arrangement fees + buildings insurance, typically 8-15% of the purchase price.

2. Mortgage affordability: what lenders actually do

Most UK lenders cap mortgages at 4-4.5x your annual salary, occasionally 5x for high earners or specific products. They stress-test against a notional rate (typically 7-9% in 2026), meaning a passing income multiple can still fail affordability if outgoings are high. Credit cards, loans, childcare, student loans and existing commitments all reduce what you can borrow. Run our mortgage calculator for the income-multiple ceiling and the actual monthly cost.

3. Stamp Duty for first-time buyers (2026 rates)

First-time buyers pay no Stamp Duty up to £300,000 and 5% on the portion between £300,001 and £500,000. Relief disappears entirely if the purchase price is over £625,000. A first-time buyer paying £400,000 pays £5,000 SDLT versus £10,000 for a home mover, a £5,000 saving. Scotland uses LBTT and Wales uses LTT with different thresholds; use our stamp duty calculator for your exact figure.

4. Lifetime ISA (LISA)

If you don't already have a Lifetime ISA, open one. Save up to £4,000 per tax year and the government adds 25% on top, £1,000 a year free money. Can be used towards a first home up to £450,000 anywhere in the UK. Open before age 40, use before age 50. Both partners can each have their own LISA, so a couple buying together can stack £8,000 of government bonus across two years.

5. Shared Ownership

Shared Ownership lets you buy a percentage of a property (10-75%) and pay rent on the rest. Deposit is calculated on your share, not the full property value, so 10% of a 25% share of a £400,000 property is £10,000 deposit, not £40,000. Service charges and the rent component are the trade-off. Income cap typically applies (around £80,000 outside London, £90,000 in London).

6. First Homes scheme

First Homes are a subset of new-build properties sold at a 30-50% discount to local market price, with eligibility restricted to local first-time buyers below an income threshold. The discount stays attached to the property in perpetuity. When you sell, you sell at the same discount to the next eligible buyer. Good for staying in place; reduces resale flexibility if you need to move out of area.

7. The buying process week-by-week

1. Weeks 0-2: Mortgage agreement in principle, viewings, offer
2. Week 3: Offer accepted, instruct solicitor, apply for full mortgage
3. Weeks 4-8: Solicitor enquiries, searches, draft contract, survey
4. Weeks 9-12: Mortgage offer issued, contracts agreed, exchange
5. Weeks 13-16: Completion, keys handed over, move in

12-16 weeks is typical. Chains, mortgage delays and survey issues can extend this. Cash buyers can complete in 4-6 weeks.

8. The fees you'll actually pay

• Mortgage arrangement fee: £0-£2,000 (often added to the loan)
• Conveyancing: £1,200-£2,500 including disbursements
• Searches: £200-£400 (local authority, water, environmental)
• Survey: £400 (Level 2 HomeBuyer) to £900 (Level 3 Building Survey)
• Stamp Duty: see our calculator
• Land Registry fee: £20-£455 depending on price
• Removals: £400-£1,200

Budget £3,500 minimum on top of the deposit and Stamp Duty for the all-in completion cost. For a £400,000 first-home purchase with 10% deposit, expect roughly £45,000-£48,000 of cash at completion.