First Time Buyer Calculator UK — Know Every Cost Before You Buy
Calculate all costs of buying your first home in the UK including deposit stamp duty legal fees surveys mortgage costs and moving expenses for 2026.
Buying your first home in the UK involves many more costs than just the house price and deposit. First time buyers benefit from stamp duty relief paying zero SDLT on properties up to £425000 and reduced rates up to £625000. However you still need to budget for solicitor fees of £1000-2000 survey costs of £300-1500 mortgage arrangement fees of £0-2000 and moving costs of £500-1500. Our calculator adds up every cost so you know exactly how much you need saved before making an offer.
How much deposit do I need as a first time buyer?
The minimum deposit most lenders accept is 5% of the property price. For a £250000 home that is £12500. However a 10-15% deposit gets you significantly better mortgage rates and lower monthly payments. Each 5% increase in deposit typically reduces your interest rate by 0.2-0.5%. A 15% deposit also means passing affordability checks more easily as you need a smaller mortgage.
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Down Payment Calculator
How This Calculator Works
This calculator uses the standard reducing balance method to compute your monthly payments. The formula takes your loan principal, annual interest rate, and tenure to calculate the exact Equated Monthly Installment (EMI) or payment amount. Each monthly payment consists of two components — principal repayment and interest charges. In the early months, a larger portion goes toward interest, but as your outstanding balance decreases, more of each payment reduces the principal. This is why making extra prepayments in the early years of your loan saves significantly more interest than prepaying later.
Tips to Get the Best Loan Deal
Always compare the Annual Percentage Rate (APR) rather than just the advertised interest rate, as APR includes processing fees, insurance charges, and other costs. Negotiate your processing fee — most banks will reduce or waive it if you ask. Choose the shortest tenure your budget allows since longer tenures dramatically increase total interest paid. Check prepayment terms before signing — RBI mandates zero prepayment penalty on floating rate home loans in India. Finally, maintain a credit score above 750 to qualify for the best rates from any lender.
Key Information
| Parameter | Details |
|---|---|
| Stamp Duty Relief Threshold | £425000 (0% for first timers) |
| Minimum Deposit (Most Lenders) | 5% of property price |
| Solicitor/Conveyancing Fees | £1000 - £2000 |
| Survey Cost Range | £300 - £1500 |
Calculate your total costs
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Use Calculator NowFrequently Asked Questions
How much deposit do I need as a first time buyer?
The minimum deposit most lenders accept is 5% of the property price. For a £250000 home that is £12500. However a 10-15% deposit gets you significantly better mortgage rates and lower monthly payments. Each 5% increase in deposit typically reduces your interest rate by 0.2-0.5%. A 15% deposit also means passing affordability checks more easily as you need a smaller mortgage.
What government help is available for first time buyers?
Several schemes help first time buyers in the UK. The Lifetime ISA provides a 25% government bonus on savings up to £4000 per year for homes up to £450000. Shared Ownership lets you buy a share of a property from 25% and pay rent on the rest. First Homes offers new-build properties at 30-50% discount in certain areas. Mortgage guarantee schemes let lenders offer 95% LTV mortgages with government backing.
What are the hidden costs of buying a home?
Beyond the deposit common hidden costs include valuation fees charged by the lender typically £250-500 mortgage arrangement or product fees of £0-2000 which can be added to the loan building insurance required from exchange of contracts and potential leasehold costs like ground rent and service charges for flats. Budget an additional £3000-5000 on top of your deposit for these unavoidable purchasing costs.
What is a fixed vs variable rate mortgage?
A fixed rate locks your interest rate for 2-5 years, giving payment certainty. A variable (tracker) rate moves with the Bank of England base rate and can be lower initially but carries risk of increases. Most UK buyers choose a 2 or 5 year fix then remortgage when the fixed period ends.
How much deposit do I need for a UK mortgage?
The minimum deposit is typically 5-10% of the property value. A 10% deposit opens more competitive rates, and 25% or more gets the best deals. First-time buyers may access government schemes like Shared Ownership with smaller deposits. The bigger your deposit, the lower your LTV ratio and monthly payments.
What are the stamp duty rates for 2025-26?
Post-April 2025 SDLT rates: 0% on first £125,000, 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1,500,000, and 12% above £1.5 million. First-time buyers pay 0% up to £300,000 and 5% on the portion between £300,001-£500,000 (relief lost above £500,000).
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Last updated: March 2026