Many first-time buyers purchase with a deposit of around 5% to 15% of the property price, although the amount required will depend on the mortgage, property and your individual circumstances.

Your deposit affects your loan-to-value, or LTV. For example, if you buy a £250,000 property with a £25,000 deposit, you would need a £225,000 mortgage, giving you a 90% LTV.

Generally, a larger deposit means you need to borrow less and may give you access to a wider choice of mortgage products and potentially more competitive interest rates.

You can find out more about deposit sizes, gifted deposits and how your deposit can affect your mortgage options in our Mortgage Deposit Guide.

Can you buy your first home with no deposit?

Yes. 100% mortgages are available, which means some eligible buyers may be able to borrow the full purchase price without providing a traditional cash deposit.

There are also mortgage options requiring less than a 5% deposit, although eligibility criteria can be more restrictive.

Some no-deposit mortgages do not require financial support from family members, while other options may involve savings or equity provided by a parent or relative.

Affordability, income, credit history, the property and individual lender criteria will all affect the options available.

If saving a large deposit is the main thing preventing you from buying, speak to us before assuming you need to wait. We can review your circumstances and explain the options that may be available.

100% and other sub-5% deposit mortgages are currently available in the UK market.

First-time buyers may have access to tax reliefs, savings schemes, high loan-to-value mortgages and affordable home ownership schemes that can make buying a first home more achievable.

First-Time Buyers’ Stamp Duty Relief

In England and Northern Ireland, eligible first-time buyers currently pay:

0% Stamp Duty Land Tax on the first £300,000 of the purchase price.

5% on the portion between £300,001 and £500,000.

If the purchase price is more than £500,000, First-Time Buyers’ Relief does not apply and the normal residential Stamp Duty rates are used.

Everyone purchasing the property must normally qualify as a first-time buyer and you must intend to occupy the property as your main residence. GOV.UK

You can find more information in our Stamp Duty Tax Guide.

Lifetime ISA

A Lifetime ISA, or LISA, can help eligible first-time buyers save towards their first home.

You can currently contribute up to £4,000 each tax year, with the government adding a 25% bonus, worth up to £1,000 a year.

To use the money towards your first home, the property must currently cost £450,000 or less, you must be buying with a mortgage and at least 12 months must have passed since your first payment into the Lifetime ISA. GOV.UK

Help to Buy ISA

The Help to Buy ISA is closed to new applicants.

If you already have a Help to Buy ISA, you can continue paying into it until November 2029 and claim the government bonus until December 2030, subject to the scheme rules. GOV.UK

95% mortgages

Some first-time buyers may be able to purchase with a deposit of just 5%.

The permanent Mortgage Guarantee Scheme supports the availability of mortgages between 91% and 95% LTV, helping eligible buyers purchase with a smaller deposit.

There are also 95% mortgages available outside the government scheme, so the most suitable option will depend on your individual circumstances. GOV.UK

First Homes

The First Homes scheme helps eligible first-time buyers in England purchase qualifying properties at a discount of at least 30% against market value.

Unlike Shared Ownership, you purchase the property rather than buying a share and paying rent on the remainder.

National eligibility criteria include a household income limit of £80,000, or £90,000 in Greater London. Local authorities can also apply additional eligibility requirements. GOV.UK

Shared Ownership

Shared Ownership can provide another route onto the property ladder if buying a suitable home outright is not currently affordable.

You purchase a share of the property and pay rent to the housing association or provider on the remaining share.

Depending on the property and scheme, you may initially purchase between 10% and 75% of the property. You may then be able to purchase additional shares later through a process known as staircasing.

Household income must generally be £80,000 a year or less, or £90,000 or less in London, and you must be unable to afford all of the deposit and mortgage payments for a suitable home. GOV.UK

Find out more about Shared Ownership Mortgages.

Help to Buy

The Help to Buy Equity Loan scheme in England is now closed to new applications. GOV.UK

Other options may still be available to first-time buyers, including low-deposit mortgages, 100% mortgages, Shared Ownership and First Homes, depending on your circumstances.

If you are unsure which options may be available to you, speak to one of our mortgage advisers and we can talk you through the current choices.

Your deposit is not the only cost to consider when buying your first home. Planning for the other costs involved can help prevent unexpected expenses later in the process.

Stamp Duty

Depending on the purchase price and your circumstances, you may have Stamp Duty Land Tax to pay.

Eligible first-time buyers may qualify for the additional relief explained above. Your solicitor or conveyancer will normally calculate any Stamp Duty due and arrange payment to HMRC.

Mortgage valuation

A mortgage lender will normally arrange a valuation to check that the property provides suitable security for the mortgage.

The mortgage valuation is primarily for the lender and is not the same as having an independent survey carried out for your benefit.

Some mortgage products include a standard valuation at no additional cost, while others may charge a valuation fee.

Property survey

You may also want to arrange your own survey to understand the condition of the property before you become legally committed to buying it.

The type of survey you need will depend on factors such as the age, construction and condition of the property.

You can find more information in our House Survey Guide.

Solicitor or conveyancer

Your solicitor or licensed conveyancer handles the legal side of purchasing your home.

They will deal with matters including searches, the contract, title to the property, communication with the seller’s solicitor, your mortgage lender and the transfer of funds at completion.

Fees vary, so make sure you understand what is included in any quotation you receive.

Mortgage advice

A mortgage adviser can help establish how much you may be able to borrow, research suitable mortgage options and manage your application through to mortgage offer.

Your adviser will also explain the costs involved before you decide whether to proceed.

Moving costs

Remember to budget for other expenses such as removals, storage, furniture, decorating and the general costs involved in setting up your new home.

1. Speak to a mortgage adviser

A useful first step is establishing approximately how much you may be able to borrow, what deposit you may need and what your monthly mortgage payments could look like.

Your adviser can review your income, expenditure, deposit and circumstances and discuss the mortgage options that may be available.

2. Obtain an Agreement in Principle

An Agreement in Principle, sometimes called an AIP, DIP or Decision in Principle, gives an indication of how much a lender may be prepared to lend based on the information provided.

It can also help demonstrate to estate agents and sellers that you have investigated your mortgage position.

An Agreement in Principle is not a mortgage offer or a guarantee that a lender will approve your application. A full application remains subject to affordability, credit checks, underwriting and the property being acceptable to the lender.

3. Find your property

Once you understand your budget, you can start searching for your first home.

Remember to consider the overall cost of owning the property, including your mortgage payments, council tax, utilities, insurance and any service charges.

4. Make an offer

Once you find a property you want to buy, you can make an offer through the estate agent.

Having your Agreement in Principle and evidence of your deposit available can help demonstrate that you are in a position to proceed.

5. Submit your mortgage application

Once your offer has been accepted, your mortgage adviser can confirm the mortgage you wish to proceed with and submit the full application.

The lender will assess your application and will normally arrange a valuation of the property.

You can find more information in our Mortgage Application Guide.

6. Conveyancing and survey

Your solicitor or conveyancer carries out the legal work while your mortgage application progresses.

This is also normally the stage when you arrange any independent property survey you require.

7. Mortgage offer

If the lender is satisfied with your application and the property, it will issue a formal mortgage offer.

Your solicitor will also need to complete the necessary legal work before you can proceed to exchange of contracts.

8. Exchange of contracts

Once contracts are exchanged, the purchase becomes legally binding.

Your solicitor will agree the completion date and arrange for any money required at exchange to be transferred.

9. Completion

On completion day, your mortgage lender sends the mortgage funds to your solicitor, who transfers the purchase money to the seller’s solicitor.

Once completion has taken place, the estate agent can release the keys and your new home is officially yours.