Are you ready to buy?

Buying your first home is exciting—but it’s also a big financial step. Before you start viewing properties, it helps to check you’re ready for the realities of mortgage lending and the upfront costs that come with completing a purchase.

This guide focuses on what you need to be prepared for as a first-time buyer: building your deposit, understanding government deposit-saving schemes, and budgeting for the additional expenses that sit alongside your mortgage.

1) Deposit readiness: can you cover the upfront amount?

A deposit is the lump sum you pay towards the purchase price. The size of your deposit affects how much you need to borrow and can influence the mortgage options available to you.

How much deposit do you need?

As a starting point, many first-time buyers aim for at least 5% of the purchase price.

• For a home costing £200,000, a 5% deposit would be £10,000.
• A larger deposit can reduce the loan amount and may help with affordability and mortgage choice.

Note: the minimum deposit required can vary by lender, product and your circumstances.

Where can your deposit come from?

Deposits can typically come from:

• Your own savings
• Gifts from family (often with documentation requirements)
• Loans from family or others (subject to lender rules)
• Government-supported savings schemes (see below)
• A combination of these

Why lenders care about your deposit

Lenders usually want to see that the deposit is genuine, available when needed, and can be evidenced clearly. If you’re planning to use a gift or a loan from family, it’s worth considering early how that money will be documented.

2) Government deposit-saving schemes (and how they can help)

If saving a deposit feels like a stretch, government-backed schemes may help you build funds more quickly. Two commonly used options for first-time buyers are the Help to Buy ISA and the Lifetime ISA.

Note: availability and rules can change over time. It’s important to check the current terms before relying on any scheme.

Help to Buy ISA (deposit saving)

The Help to Buy ISA was designed to help people save towards their first home by adding a government bonus to your savings.

Key points commonly associated with the scheme include:

• a government bonus on what you save
• tax-free interest
• the ability to make monthly contributions and, in some cases, start with an initial lump sum

It’s also aimed at people who meet first-time buyer and residency requirements, and the property must match specific conditions (for example, it must be in the UK and intended for your own use).

Important: the Help to Buy ISA has had changes over time. Check the latest eligibility and whether new accounts are available.

Lifetime ISA (LISA)

The Lifetime ISA is a flexible savings option intended to support either:

• saving for a first home, or
• building funds for retirement

Common features include:

• you can open it if you’re over 18 and under 40 at the time you take it out
• you can pay in up to an annual limit
• the government adds a 25% bonus on your contributions, up to a yearly maximum
• you can use it towards your first home (subject to conditions)

There are also important restrictions to understand, such as property value limits and timing rules (for example, the account usually needs to be open for a minimum period before you can use it for a home purchase). If you withdraw for reasons outside the permitted uses, penalties can apply.

3) Don’t forget the other costs of buying a home

Your deposit is usually the biggest upfront payment—but it’s not the only one. First-time buyers often find the “extras” add up quickly, especially when you’re working to a completion deadline.

Below are common costs to budget for.

Mortgage arrangement fees

Some mortgage deals include an arrangement fee. Others may be fee-free but could have a different interest rate.

If a fee is payable, you may be able to pay it upfront or add it to the loan in some cases. Either way, it’s worth understanding how it affects your overall cost.

Lender’s valuation

Before a mortgage is approved, the lender will usually carry out a valuation of the property.

• This is typically paid by the borrower.
• Costs can vary depending on the lender and the type of valuation.

Survey costs

A lender’s valuation is not the same as an independent survey. Many buyers choose a survey to identify potential issues.

• The cost depends on the property type and level of survey.
• For older properties or homes with known concerns, an independent survey can be particularly valuable.

Solicitor / conveyancing fees (and disbursements)

Buying a home involves legal work and searches.

• Solicitor fees cover the legal process.
• Disbursements cover things like searches and other required costs.

These costs are usually paid during the transaction and can vary based on the complexity of the purchase.

Stamp Duty Land Tax (SDLT)

SDLT is payable when you buy a property above certain thresholds.

• The exact amount depends on the purchase price.
• SDLT is generally due at completion and usually can’t be added to your mortgage.

For the latest SDLT rules and rates, check the official guidance on GOV.UK.

Removal and moving costs

Moving costs vary widely depending on distance, timing, and how much support you need.

It’s common to budget for:

• removal services or a van hire
• packing materials
• short-term storage (if required)

Home insurance

Most mortgage lenders require buildings insurance.

Many buyers also consider contents insurance to protect belongings.

Insurance costs depend on factors such as property type, location, and the level of cover.

Reservation fees for new-builds

If you’re buying a new-build property, you may be asked to pay a reservation fee to secure the plot.

• This is usually paid to the developer.
• It may be deducted from what you pay at completion.
• Terms can vary, including whether it’s refundable.

4) A simple readiness checklist

Before you commit to a mortgage application, it helps to confirm you can cover the full picture:

• Deposit: you know the amount you need and where it will come from
• Savings plan: you have a realistic timeline to reach your target
• Government schemes: you understand the rules and whether they fit your situation
• Upfront costs: you’ve budgeted for valuation, survey, legal fees, and SDLT where relevant
• Completion costs: you’re prepared for payments that can’t be added to the mortgage

Next steps (without the pressure)

If you’re unsure whether your deposit and budget line up, the most useful thing is to review your numbers early—before you fall in love with a property that’s outside your affordability range.

A clear view of your deposit and the other costs can make the buying process feel far more manageable, and helps you move forward with confidence.