If you are planning to purchase your first home in 2026, you may be feeling unsure about where to start. From saving for a deposit and understanding how much you can borrow, to separating fact from fiction online, the process can feel overwhelming without the right guidance.
In this article, we answer the most common questions we hear from first-time buyers, cutting through myths, and explaining what really matters when preparing to step onto the property ladder. Whether you are beginning to save or actively planning your purchase, these FAQs will help you feel informed, confident, and better prepared for the journey ahead.
How much deposit do I need as a first-time buyer?
Most UK lenders typically require a minimum deposit of 5% of the property’s price, although exact requirements vary by lender.
The amount you need to save will depend on the value of the property you are wanting to purchase (you do not have to borrow the maximum amount you are offered by a lender) and what percentage of the purchase price you would like to put down as a deposit, for example:
| Property Price | 5% Deposit | 10% Deposit | 20% Deposit |
| £200,000 | £10,000 | £20,000 | £40,000 |
| £250,000 | £12,500 | £25,000 | £50,000 |
| £300,000 | £15,000 | £30,000 | £60,000 |
While a 5% deposit may be sufficient, saving a 10% or 20% deposit can significantly improve your options, as a larger deposit reduces your Loan-to-Value (LTV), helping you access more competitive interest rates and lower monthly repayments.
You are able to estimate how much you may be able to borrow using the Cooper Associates Borrow Calculator, which provides a guide based on your current income. While this figure is indicative, it can be a useful starting point when planning to save for a deposit.
Mortgage products designed to help first-time buyers
Some lenders offer mortgage products that are designed to help first-time buyers step onto the property ladder and may reduce deposit requirements, including:
Accord £5,000 Deposit Mortgage:
The Accord £5,000 Deposit Mortgage is designed to help first-time buyers purchase a home with a fixed minimum deposit of £5,000, rather than a percentage of the property price. This allows eligible buyers to borrow up to 99% loan-to-value (LTV) on properties priced between £100,001 and £500,000 (subject to regional price caps and lender criteria).
Barclays Family Springboard Mortgage:
This product offered by Barclays bank allows parents or close relatives to place a set amount of their savings (usually 10% of the property’s purchase price) into a linked account held by the lender for a specified period (typically 5 years), acting as security for the mortgage.
Joint Borrower Sole Proprietor (JBSP) Mortgage:
A JBSP mortgage is a product that allows the primary applicant to boost their borrowing capacity by having multiple individuals (typically family members) apply for the mortgage together, without giving up ownership of the property.
Guarantor Mortgage:
A guarantor mortgage enables a parent or close relative to act as a financial safety net on your application. This means that instead of contributing income directly towards the mortgage, the guarantor agrees to cover repayments if the first-time buyer is ever unable to.
For a more in-depth break down on these mortgage products, read our ‘6 Innovative Mortgage Lender Offerings for First-Time Buyers’ article.
What credit score do I need for a mortgage?
There is no fixed credit score required to get a mortgage in the UK. Most mortgage lenders typically use their own criteria and assess your overall credit history (e.g. payment history, levels of outstanding debt, credit card utilisation) rather than relying on one universal score.
Having little or no credit history can sometimes make it more challenging to get a mortgage, as lenders prefer to see evidence of responsible borrowing. However, simple steps such as using a credit card for everyday purchases (e.g. food shops or fuel) and paying it off in full each month can help improve your credit profile. However, it is essential to remain within your spending limits.
While a higher credit score can improve your chances of approval and help you access more competitive interest rates, a lower score does not automatically prevent you from buying your first home.
It is important to note that if you have little or no credit score, there are specialist lenders who focus on lending to people with adverse credit history. Working alongside a mortgage adviser can help you understand your options and find lenders best suited to your circumstances.
Do first-time buyers pay stamp duty?
Stamp duty is a UK government tax on the purchase of certain land and property. It is calculated as a percentage of the purchase price and must be paid within 14 days of completing the transaction.
Technically, first-time buyers are not automatically exempt from paying stamp duty. They are, however, eligible for highly favourable reliefs which may mean that no stamp duty is paid, depending on the value of the property:
| Property Price | Stamp Duty Relief Charges |
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| £500,001 or above | Standard stamp duty charges will apply to the portion above £500,001. |
For example:
If a first-time buyer purchases a house valued at £299,999, they are not required to pay any stamp duty on the property.
If you purchase a property for £400,000 as a first-time buyer, the stamp duty you owe will be calculated as follows:
- 0% on the first £300,000 = £0.
- 5% on the final £100,000 = £5,000.
Total Stamp Duty Due = £5,000.
What costs should I budget for besides the deposit?
Saving your desired deposit is a major achievement, however it is important to consider budgeting for other costs associated with buying a new home, before you make any commitments. This may help you avoid potential financial strain once your homeownership journey begins. Some common costs that you may want to budget for include:
Solicitor fees:
This fee covers the cost of the legal work required to transfer ownership of the property into your name and typically ranges between £1,000 to £2,000.
Mortgage arrangement fee:
Lenders commonly charge an arrangement fee to cover the cost of setting up your mortgage. Charges can cost up to £2,000, however this figure is lender dependent.
Valuation fee:
The lender may charge a valuation fee to confirm the property is worth the purchase price and suitable as security for the loan. This fee usually costs between £150 to £500, although this figure may vary.
Survey costs:
A property survey is separate from the lender’s valuation as it is an optional cost. However, they are strongly recommended as they help you understand the condition of the home (e.g. structural movement, damp, roof issues or other costly repairs) prior to you making any commitments.
There are several types of survey available, with costs tending to range from £300 to £2,000. However, this figure depends on several factors including the survey’s level of detail, property age, and property size.
Broker or adviser fee:
Some mortgage advisers charge a fee for advice and helping to arrange the mortgage, while others, including Cooper Associates Mortgages, provide fee-free, no-obligation advice.
It is important to check if there is a fee, prior to booking any meetings or receiving advice to avoid potential charges.
Moving costs:
Removals, storage, and packing materials are costs that should be considered, alongside initial set up costs such as furniture, appliances, council tax, and utility connections (e.g. electricity, gas, and water).
These costs can add up quickly which makes early preparation key to ensure you are financially prepared and avoid unexpected surprises when it comes to moving into your new home.
Financial Buffer:
Finally, it is useful to keep a financial buffer for unexpected expenses, such as minor repairs or higher-than-expected bills, during the first few months of homeownership.
This helps ensure your initial months as new homeowners are as smooth and stress-free as possible.
What is mortgage affordability?
When you apply for a mortgage, the lender will carry out an affordability assessment to determine how much you can realistically borrow and comfortably afford to repay each month. These assessments are designed to prevent you from overborrowing and ensures your mortgage remains manageable both now and in the future.
During this process lenders will review your income, employment status, regular outgoings, existing debts, credit history and the size of your deposit (amongst other things) to help them understand your overall financial position.
If you would like to improve your affordability and strengthen your application, reducing existing debts such as credit cards, loans or car finance can be particularly effective, as this lowers your monthly commitments.
How can Cooper Associates Mortgages help?
Our expert advisers can advise you throughout your mortgage journey and are on hand to answer any questions you may have regarding the process.
We provide fee-free, no-obligation advice that is tailored to your personal circumstances, helping you to feel confident when navigating the mortgage landscape for the first time.
Get in touch today to find out more about how we can help you secure your first home and take your first steps toward homeownership.
