- First time buyer
- someone who has never owned a residential property in the UK or abroad. You can qualify for Stamp Duty relief and some schemes if you meet the rules.
- Stamp Duty Land Tax, SDLT
- the tax on property purchases in England and Northern Ireland. Scotland and Wales have separate property taxes with their own first time buyer rules.
- Lifetime ISA
- a tax free savings or investment account for a first home or later life. You can save up to £4,000 a year and receive a 25% government bonus toward a first home worth up to £450,000.
- Loan to value, LTV
- your mortgage as a percentage of the property value. A bigger deposit lowers LTV and usually unlocks a better rate.
- Mortgage in principle
- also called an Agreement in Principle. A soft credit check that shows how much a lender may lend before you make an offer on a property.
Key facts
- First time buyer Stamp Duty relief in England and Northern Ireland: 0% up to £300,000, then 5% from £300,001 to £500,000
- No first time buyer relief if the price exceeds £500,000
- Lifetime ISA: save up to £4,000 a year with a 25% bonus of up to £1,000 a year toward a first home up to £450,000
- Typical deposit: at least 5 to 10 percent of the purchase price, though a larger deposit usually means a lower mortgage rate
Work out your Stamp Duty with the stamp duty calculator, see how much you could borrow with the mortgage affordability calculator, and read the full stamp duty rates guide for all buyer types.
Stamp duty for first time buyers
In England and Northern Ireland, first time buyers get Stamp Duty Land Tax relief on properties up to £500,000. You pay nothing on the first £300,000, then 5 percent on the portion from £300,001 to £500,000. If the price is above £500,000, you pay standard rates with no first time buyer relief.
| Purchase price | First time buyer SDLT |
|---|---|
| £250,000 | £0 |
| £350,000 | £2,500 |
| £450,000 | £7,500 |
| £550,000 | £17,500 |
First time buyer Stamp Duty at sample prices, England and Northern Ireland, 2026/27
On a £350,000 home, a first time buyer pays £2,500 (5 percent on the £50,000 above £300,000). A standard buyer on the same price pays £7,500.
Scotland and Wales
Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). Both have their own first time buyer thresholds and rates, which differ from England and Northern Ireland. This guide focuses on SDLT for England and Northern Ireland.Saving your deposit and the Lifetime ISA
Most lenders want a deposit of at least 5 to 10 percent of the purchase price. On a £250,000 home, that means £12,500 to £25,000 upfront. A larger deposit lowers your loan to value and usually unlocks a better mortgage rate. See the LTV calculator for how deposit size affects your rate band.
A Lifetime ISA (LISA) can boost your deposit. If you are aged 18 to 39, you can save up to £4,000 a year and receive a 25% government bonus of up to £1,000 a year. The bonus applies toward a first home worth up to £450,000. You can keep paying in until age 50.
Full rules on types, transfers, and withdrawals are in our ISA guide. Withdrawing for anything other than a first home or from age 60 triggers a 25% charge that recovers the bonus.
| Years saving | Your contributions | Government bonus | Total balance |
|---|---|---|---|
| 1 year | £4,000 | £1,000 | £5,000 |
| 3 years | £12,000 | £3,000 | £15,000 |
| 5 years | £20,000 | £5,000 | £25,000 |
| 7 years | £28,000 | £7,000 | £35,000 |
| 10 years | £40,000 | £10,000 | £50,000 |
Lifetime ISA at £4,000 a year with 25% bonus, no investment growth
How much you can borrow
UK mortgage lenders typically offer around 4 to 4.5 times your gross annual income as a starting point, though the final figure depends on affordability checks, debts, and a stress test at higher rates. On a £40,000 salary, that suggests roughly £160,000 to £180,000 before other factors.
Joint applicants combine incomes, but shared debts and dependants still apply. Use the mortgage affordability calculator for a baseline figure, then get a mortgage in principle from a lender or broker for a personalised offer.
Schemes that can help
Government and housing association schemes change over time, so always check what is currently open in your area before you plan around one.
Shared ownership
Shared ownership lets you buy a share of a property, often between 25 and 75 percent, and pay rent on the rest to a housing association. You can usually staircase, buying more shares over time. Deposits are calculated on your share, not the full property value, which can make entry cheaper, but you pay both mortgage and rent.
Other government schemes
Schemes such as First Homes (discounted new build properties for local first time buyers) and Help to Buy style products have launched and closed in past years. Check GOV.UK and your local council for what is available now, since eligibility and funding change.
The buying process step by step
- Get a mortgage in principle. Shows sellers you can afford the property and gives you a borrowing figure.
- Find a property and make an offer. Usually through an estate agent. Offers can be below the asking price.
- Instruct a solicitor or conveyancer. They handle searches, contracts, and the legal transfer.
- Valuation and survey. The lender values the property. A homebuyer survey checks condition.
- Mortgage offer. The lender confirms the loan after underwriting your application.
- Exchange contracts. Both parties are legally committed. You usually pay your deposit here.
- Completion. Funds transfer, you get the keys, and Stamp Duty is paid if due.
The process typically takes 8 to 12 weeks from offer to completion, though chains and survey issues can delay it.
The extra costs to budget for
Beyond the deposit and any Stamp Duty, budget for these common costs on a typical purchase:
| Cost | Typical range | Notes |
|---|---|---|
| Solicitor or conveyancer | £800 to £1,500 | Legal work, searches, and Land Registry |
| Survey | £400 to £1,500 | Homebuyer or building survey, optional but recommended |
| Mortgage fees | £0 to £1,999 | Product or arrangement fee on the loan |
| Moving costs | £300 to £1,500 | Van hire, removals, or storage |
Stamp Duty Calculator
Calculate SDLT for first time buyers, standard buyers, and additional properties in 2026/27.
Related Calculators
Frequently Asked Questions
In England and Northern Ireland, none up to £300,000, then 5 percent from £300,001 to £500,000, and no relief above £500,000.
Yes, for a first home worth up to £450,000. You save up to £4,000 a year and get a 25 percent bonus of up to £1,000 a year.
Usually at least 5 to 10 percent of the property price, though a larger deposit unlocks better mortgage rates.
Lenders typically offer around 4 to 4.5 times income, subject to affordability checks.
Shared ownership lets you buy a share and rent the rest, and there may be current government schemes. Check what is available now, since they change.
Those nations have their own property taxes with their own first time buyer treatment, which differ from England and Northern Ireland.
Get a mortgage in principle, make an offer, instruct a solicitor, complete the valuation and survey, get the mortgage offer, then exchange and complete.
Solicitor fees, a survey, mortgage fees, and moving costs, on top of the deposit and any stamp duty.
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James Hartley is a CIMA qualified financial analyst and Founder and Lead Financial Analyst at WhatsUK, with 8+ years in UK tax, payroll, and compliance. He builds every calculator on WhatsUK and authors all editorial content, ensuring every figure is verified against official HMRC sources before publication.
Sources & Official References
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Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.