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:
| Item | Cost |
|---|---|
| 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:
| Income | Borrow (4.5×) | Deposit | Max price | Monthly* |
|---|---|---|---|---|
| £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 →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.