First Time Buyer Calculator UK 2025

Calculate First Home Purchase Costs

Enter your property details to see all costs involved in buying your first home.

Property Value (£)

Deposit Percentage (%)

Mortgage Interest Rate (%)

Mortgage Term (years)

FCA Compliance Notice

This calculator provides first-time buyer cost estimates for informational purposes only. It does not constitute financial or mortgage advice. First-time buyer benefits including stamp duty relief are subject to HMRC eligibility criteria and may change. Mortgage affordability depends on individual circumstances and lender criteria regulated by the FCA. Always verify current stamp duty thresholds (£425,000 relief, £625,000 maximum) and seek independent financial advice before committing to a property purchase. MortgagePro.uk is a comparison tool and not a financial advisor or mortgage lender.

First Time Buyers

First-time buyers in the UK get several benefits including stamp duty relief and access to government schemes.

Plan for all costs including deposit, legal fees, surveys, and moving expenses.

Typical Additional Costs

Budget for these extra costs:

Legal fees: £850-£1,500
Survey: £400-£1,000
Arrangement fee: £0-£2,000
Valuation: £150-£1,500
Moving costs: £500-£1,500

Related Calculators

How to Use This First Time Buyer Calculator

Follow these 6 simple steps to calculate your complete first home purchase costs including deposit, mortgage, stamp duty relief, and all additional fees. Our calculator provides instant, accurate estimates tailored to first-time buyers in the UK.

Enter Property Value

Input the full purchase price of the property you're considering. This is the asking price or agreed sale price, not the mortgage amount. For example, if you're looking at a £300,000 property, enter "300000".

💡 First-Time Buyer Tip: UK average first-time buyer property price is £224,000 (2025). In London, it's £425,000. Regional variations: North West £180,000, South East £320,000, Scotland £155,000. Check UK House Price Index for current regional data.

Enter Deposit Percentage

Specify what percentage of the property value you can put down as a deposit. Most first-time buyers start with 5-10%, though 15-20% deposits unlock better mortgage rates. For a £300,000 property, a 10% deposit is £30,000.

⚠️ Important: Larger deposits (15-20%) typically reduce interest rates by 0.5-1.5%, saving £50-150/month on a £270,000 mortgage. Use our Deposit Calculator to plan your savings. Consider Lifetime ISA for 25% government bonus (up to £1,000/year).

Enter Mortgage Interest Rate

Input the annual interest rate you expect to pay on your mortgage. As of October 2025, typical first-time buyer rates range from 4.5% to 6.5% depending on your deposit size and credit score. Higher deposits (15-20%) qualify for lower rates (4.5-5.5%), while 5-10% deposits typically see 5.5-6.5% rates.

💡 Rate Comparison: 5-year fixed rates (October 2025): 90% LTV (10% deposit) = 5.8-6.5%, 85% LTV (15% deposit) = 5.2-5.8%, 80% LTV (20% deposit) = 4.8-5.4%. Check current rates on Moneyfacts or use our Mortgage Comparison Calculator.

Select Mortgage Term

Choose how many years you want to repay the mortgage over. Most first-time buyers select 25-30 years. Longer terms (30-35 years) mean lower monthly payments but more interest paid overall. Shorter terms (20-25 years) have higher monthly payments but save thousands in interest.

✅ Example: £270,000 mortgage at 5.5%: 25-year term = £1,650/month (£225,000 total interest), 30-year term = £1,530/month (£281,000 total interest), 35-year term = £1,450/month (£339,000 total interest). Shorter terms save £56,000-114,000 in interest. Use our Repayment Calculator to compare.

Click "Calculate Purchase Costs"

Once you've entered all four values, click the "Calculate Purchase Costs" button. The calculator will instantly compute your total purchase costs, monthly mortgage payment, stamp duty (with first-time buyer relief), and additional fees breakdown.

💡 What You'll See: (1) Total Cost: Deposit + stamp duty + all fees, (2) Monthly Payment: Your estimated mortgage payment, (3) Stamp Duty: £0 for properties up to £425,000 (first-time buyer relief), 5% on portion above £425k up to £625k, (4) Additional Fees: Legal (£850-1,500), survey (£400-1,000), arrangement (£0-2,000), valuation (£150-1,500).

Review Your Complete Cost Breakdown

Examine the detailed breakdown showing deposit amount, mortgage amount, stamp duty with first-time buyer relief, legal fees, survey costs, and arrangement fees. This gives you a complete picture of all upfront costs and ongoing monthly payments for your first home purchase.

⚠️ Don't Forget: Budget for additional costs not shown: Buildings insurance (£200-600/year, required by lenders), life insurance (£10-30/month, recommended), moving costs (£500-1,500), furniture/appliances (£2,000-5,000), emergency fund (3-6 months expenses). Total first-year costs typically 5-8% above purchase price. Check our Affordability Calculator to ensure comfortable budgeting.

Important First-Time Buyer Reminders

Stamp Duty Relief: First-time buyers pay £0 stamp duty on properties up to £425,000 (saving up to £6,250). For £425,001-£625,000, pay 5% on portion above £425k only.
Government Schemes: Explore Help to Buy, Shared Ownership, Lifetime ISA (25% bonus), and First Homes Scheme (30-50% discount) to reduce costs.
Mortgage in Principle: Get a free mortgage in principle (15-30 minutes) before house hunting to know your budget and show sellers you're serious.
Credit Score: Check your credit score (free on ClearScore, Experian, Equifax). Scores 750+ qualify for best rates. Improve by registering to vote, paying bills on time, reducing credit utilization.
Professional Advice: This calculator provides estimates only. Consult FCA-regulated mortgage advisors for personalized advice based on your circumstances, income, and credit history.

Frequently Asked Questions

Essential information for first time buyers in the UK

What costs should I budget for when buying my first home?

Budget for deposit, stamp duty, legal fees (£850-£1,500), survey costs (£400-£1,000), mortgage arrangement fees, valuation fees, and moving costs. Total additional costs typically range from 3-5% of property value.

Do I qualify for first-time buyer stamp duty relief?

Yes, if you're buying your first home for up to £425,000, you pay no stamp duty. For properties between £425,001-£625,000, you pay 5% on the portion above £425,000.

What's the minimum deposit I need?

Most lenders require a minimum 5-10% deposit for first-time buyers. A larger deposit (15-20%) typically gets you better interest rates and more mortgage options.

What government schemes are available?

First-time buyers can access Help to Buy, Shared Ownership, Lifetime ISA bonuses, and the government's guarantee scheme for 95% mortgages.

Should I get a mortgage in principle?

Yes, a mortgage in principle shows sellers you're a serious buyer and gives you confidence about your budget. It's usually free and takes 15-30 minutes to arrange.

Can I use a Lifetime ISA for my first home deposit?

Yes, Lifetime ISA provides a 25% government bonus on savings up to £4,000/year (£1,000 bonus). You can use it for first homes up to £450,000. Over 4 years, save £16,000 and receive £4,000 bonus = £20,000 total. Must be held for 12 months before use. See our Lifetime ISA Calculator for detailed projections.

What's the difference between Help to Buy and Shared Ownership?

Help to Buy provides an equity loan (up to 20% in England, 40% in London) with no interest for 5 years, requiring only 5% deposit. Shared Ownership lets you buy 25-75% of a property and pay rent on the remainder, with smaller deposit requirements (5-10% of share value). Both schemes help first-time buyers with limited deposits. Use our Help to Buy and Shared Ownership calculators to compare.

How much should I budget for additional costs beyond deposit and stamp duty?

Budget £3,000-£6,000 for additional costs: legal fees (£850-£1,500), survey (£400-£1,000), mortgage arrangement fee (£0-£2,000), valuation (£150-£1,500), moving costs (£500-£1,500), and buildings insurance (£200-£600/year). For a £300,000 property, total additional costs typically range from £4,000-£7,000 including stamp duty relief savings.

Complete Guide to First-Time Buyer Costs in 2025

Understanding First-Time Buyer Benefits

First-time buyers in the UK receive significant financial advantages designed to make homeownership more accessible. The most substantial benefit is stamp duty relief, which can save you thousands of pounds. As of September 2025, first-time buyers pay £0 stamp duty on properties up to £425,000, compared to standard buyers who start paying at £250,000. For properties between £425,001-£625,000, you pay 5% only on the portion above £425,000.

Example savings: On a £400,000 property, first-time buyers pay £0 stamp duty, while standard buyers pay £7,500 – a saving of £7,500. On a £500,000 property, first-time buyers pay £3,750 (5% on £75,000), while standard buyers pay £15,000 – a saving of £11,250.

First-Time Buyer Stamp Duty Rates 2025

Up to £425,000: 0% (£0 stamp duty)
£425,001 - £625,000: 5% on portion above £425,000
Above £625,000: Standard rates apply (no FTB relief)

Maximum saving: £11,250 on properties between £425,000-£625,000. Use our Stamp Duty Calculator for exact calculations.

Complete Cost Breakdown for First-Time Buyers

Buying your first home involves multiple costs beyond the deposit. Here's a comprehensive breakdown of all expenses you should budget for:

Cost Item	Typical Range	Details
Deposit	5-20% of property value	£15,000-£60,000 on £300k property. 10% recommended for better rates
Stamp Duty	£0 (up to £425k)	First-time buyer relief saves £7,500+ vs standard rates
Legal Fees	£850-£1,500	Conveyancing, searches, Land Registry fees
Survey Costs	£400-£1,000	Homebuyer Report (£400-£600) or Full Structural (£600-£1,000)
Mortgage Fees	£0-£2,000	Arrangement fee (£0-£2,000), valuation (£150-£1,500), booking fee (£0-£250)
Moving Costs	£500-£1,500	Removals (£300-£800), storage, utility connections, mail redirection
Buildings Insurance	£200-£600/year	Required by lenders from completion date. Shop around for best rates

Total Additional Costs: £3,000-£6,000 beyond deposit for a £300,000 property (excluding stamp duty which is £0 for FTBs). Budget 3-5% of property value for all fees and costs.

Government Schemes for First-Time Buyers 2025

💰 Lifetime ISA

25% government bonus on savings up to £4,000/year (£1,000 bonus). Maximum property value: £450,000. Over 4 years: save £16,000 + receive £4,000 bonus = £20,000 total. Must be held 12 months before use. Calculate your LISA savings.

🏠 Help to Buy

Equity loan up to 20% (40% in London) with no interest for 5 years. Requires only 5% deposit. Available on new-build properties up to £600,000 (regional caps apply). After 5 years, interest starts at 1.75% and increases annually. Calculate Help to Buy costs.

🔑 Shared Ownership

Buy 25-75% share of property and pay rent on remainder. Deposit based on share value (5-10%), not full price. For £300k property, buy 50% share (£150k) with £7,500-£15,000 deposit vs £30,000 for full purchase. Can "staircase" to 100% ownership. Explore Shared Ownership.

🎯 First Homes Scheme

30-50% discount on new-build homes for local first-time buyers and key workers. Maximum property value: £250,000 (£420,000 in London). Discount remains when you sell. Income cap: £80,000 (£90,000 in London). Requires 5% deposit on discounted price. Check local authority for availability.

Deposit Requirements and LTV Impact

Your deposit size directly affects your mortgage interest rate and monthly payments. First-time buyers can access mortgages with as little as 5% deposit (95% LTV), but larger deposits secure significantly better rates:

Deposit Size Impact on £300,000 Property (September 2025)

5% deposit (£15,000): 95% LTV, 5.8-6.5% rate, £1,650-£1,780/month
10% deposit (£30,000): 90% LTV, 5.0-5.8% rate, £1,520-£1,650/month (save £130/month)
15% deposit (£45,000): 85% LTV, 4.7-5.5% rate, £1,450-£1,580/month (save £200/month)
20% deposit (£60,000): 80% LTV, 4.5-5.2% rate, £1,380-£1,510/month (save £270/month)

Annual savings: Moving from 5% to 10% deposit saves £1,560-£3,120/year. Over a 2-year fixed term, that's £3,120-£6,240 saved. Use our Deposit Calculator to see your specific savings.

Step-by-Step First-Time Buyer Timeline

Understanding the typical timeline helps you plan your first home purchase effectively:

Months 1-12: Save deposit using Lifetime ISA (get 25% bonus), high-interest savings, or family gifts. Check credit score and improve if needed.
Month 13: Get mortgage in principle (free, takes 15-30 minutes). Determines your budget and shows sellers you're serious.
Months 14-16: Property search and viewings. Budget for mortgage amount + deposit - stamp duty savings.
Month 17: Make offer, negotiate, and agree price. Typical negotiation: 5-10% below asking price.
Month 18: Instruct solicitor (£850-£1,500), arrange survey (£400-£1,000), submit full mortgage application.
Months 19-20: Mortgage valuation, searches, contract exchange. Pay 10% deposit at exchange.
Month 21: Completion day! Remaining funds transfer, collect keys, arrange buildings insurance and moving.

Total timeline: 12-24 months from starting to save to completion. Can be faster with larger existing savings or family help.

UK First Time Buyer Calculator 2025