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First-time buyers · Affordability

What it really costs to buy your first home

Everyone saves for "the deposit". But the deposit is only the headline act — there's a supporting cast of fees that can add thousands, and a separate question of how much a lender will actually let you borrow. Here's the whole picture, in numbers.

First-time buyers tend to plan around one number — the deposit — and get blindsided by everything else. There are really three questions to answer before you start viewing: how much cash do I need on the day, how much can I borrow, and what will it cost me every month? Let's take them in turn, using a £250,000 first home with a 10% deposit as our worked example.

1. The cash you need on the day

The deposit dominates, but it's not alone. Here's the real cash a first-time buyer hands over to complete on a £250,000 home:

Deposit £25,000 Legal £1,500 Survey £500 Mortgage fee £999 Removals £800 Total cash to complete: £28,799
On a £250,000 first home with a 10% deposit. Stamp Duty is £0 here thanks to first-time buyer relief — but the "extras" beyond the deposit still come to nearly £3,800.
Cash needed to complete — £250,000 first home, 10% deposit
ItemCost
Deposit (10%)£25,000
Stamp Duty (first-time buyer relief)£0
Conveyancing & legal£1,500
Survey£500
Mortgage arrangement fee£999
Removals & essentials£800
Total cash on the day£28,799

That first-time buyer relief is doing quiet, heavy lifting: a home mover buying the same £250,000 house would owe £2,500 in Stamp Duty. Cross £300,000, though, and even first-time buyers start paying — and above £500,000 the relief disappears completely.

Save for the deposit, then add roughly £3,000–£5,000 on top. The fees are smaller than the deposit, but they're due in cash on the same day.

2. How much can you actually borrow?

Lenders typically cap a mortgage at around 4.5 times income (sometimes more for higher earners or with help-to-buy style schemes). Your maximum purchase price is that loan plus your deposit. Here's how the ladder climbs:

£0 £160k £320k £155k £210k £265k £320k £30k income£20k deposit £40k income£30k deposit £50k income£40k deposit £60k joint£50k deposit
Maximum purchase price at 4.5× income plus deposit. Income moves the needle far more than savings do — which is why buying with a partner, or a pay rise, changes what's reachable.
What you can buy at 4.5× income
IncomeBorrow (4.5×)DepositMax priceMonthly*
£30,000£135,000£20,000£155,000£750
£40,000£180,000£30,000£210,000£1,000
£50,000£225,000£40,000£265,000£1,251
£60,000 (joint)£270,000£50,000£320,000£1,501

*Repayment mortgage on the loan amount at 4.5% over 25 years. Rates and lender multiples vary.

3. The monthly reality

The mortgage is only part of what leaves your account each month. First-time buyers consistently underestimate the running costs of owning versus renting — the repairs a landlord used to handle are now yours:

  • Mortgage — the big one, fixed for a few years then re-priced at whatever rates are doing.
  • Buildings insurance — required by your lender; contents is optional but wise.
  • Council tax & utilities — often higher than in a shared rental.
  • Maintenance & sinking fund — boilers die, roofs leak. Budgeting ~1% of the property value a year is prudent.
  • Service charge & ground rent — for flats, sometimes substantial.

Build your own number

Three calculators cover the whole journey — what you can borrow, the true cash to complete, and the monthly payment.

Affordability →

True cost of buying →  ·  Monthly repayment →

A realistic plan

Work backwards from the day of completion. Decide a target price, size the deposit, then add the fees on top to get your real savings goal — not the deposit alone. Get a mortgage agreement in principle early so you know your true ceiling. And pressure-test the monthly figure against a higher interest rate than today's, so a remortgage in a few years doesn't catch you out.

Buying your first home is the biggest financial commitment most people make. Model it properly, keep a cash buffer beyond the minimum, and treat any single figure here as a starting point for a conversation with a qualified mortgage adviser — not a guarantee of what you'll be offered.

PT
The Property Tools Team
Research & Editorial
Written and reviewed by our editorial team · fact-checked against current HMRC and GOV.UK guidance

These guides are written and maintained by the team behind The Property Tools — the same people who build the calculators on this site. We aim to explain the numbers in plain English and check every figure against current HMRC and government guidance before publishing. This is general information to help you weigh your options, not personal financial advice.

First-time buyersMortgagesAffordabilityDeposits