Your first home is closer than you think
Buying your first home can feel overwhelming. We make it simple—find out what you can afford, compare 100+ lenders, and get expert guidance every step of the way.
What could you afford?
Understanding your budget
Lenders look at your income and deposit to work out how much they’ll lend you. Here’s how it works.
Income multiples
Most lenders offer 4 to 4.5 times your annual income. Some go higher for certain professions or if you have a larger deposit.
| Your income | You could borrow |
|---|---|
| £30,000 | £120k – £150k |
| £40,000 | £160k – £200k |
| £50,000 | £200k – £250k |
| £60,000 | £240k – £300k |
| £75,000 | £300k – £375k |
Your deposit
A bigger deposit means better rates and more choice. Here’s what each level unlocks:
Buying with someone else? If you’re buying with a partner or friend, lenders will look at your combined income. Two incomes of £30k could borrow the same as one person earning £60k—making it much easier to afford a home together.
It’s not just the deposit
There are a few other costs when buying your first home. Here’s what to budget for on a typical £250,000 property.
Stamp Duty
Great news! First time buyers pay no stamp duty on properties up to £425,000. Above that, you pay 5% on the amount between £425k-£625k.
Solicitor / Conveyancer
They handle all the legal work—contracts, searches, transferring ownership. You’ll need one, but they make the process much smoother.
Survey
A survey checks the property for problems. It’s optional but highly recommended—it could save you thousands if it spots issues before you buy.
Valuation
The lender needs to check the property is worth what you’re paying. Many lenders include this for free, or it’s around £150-£300.
Mortgage fees
Some mortgages have arrangement fees. Often you can add these to the loan, but it’s worth comparing fee-free deals to see what works out cheaper.
Moving costs
Removal vans, packing materials, maybe a few takeaways while you unpack. Budget a bit for the move itself and any furniture you need.
Budget for extra costs
On top of your deposit, set aside money for these fees. It’s better to have a bit extra than be caught short on completion day.
Schemes to boost your deposit
There are several ways to get extra help with your deposit or make buying more affordable.
Lifetime ISA
Save up to £4,000 per year and the government adds 25% on top—that’s a free £1,000 per year towards your deposit. You can use it for properties up to £450,000.
Family support mortgages
Parents or family can help without giving you cash. They put savings in a linked account (earning interest) as security, or use their home as additional guarantee. After a few years, they get their money back.
Shared Ownership
Buy a share of a property (usually 25-75%) and pay rent on the rest. You need a smaller deposit and can buy more shares later. Available on new builds and some resales.
Gifted deposits
Family can gift you money for your deposit. Most lenders accept this—they’ll just need a letter confirming it’s a gift, not a loan. It won’t need to be repaid.
Not sure which applies to you? When you use Albot, we’ll automatically check which schemes and options you might qualify for and factor them into your results.
From searching to keys in hand
Here’s what happens when you buy your first home, step by step.
Get a mortgage agreement in principle
~5 mins with AlbotThis tells you how much you can borrow before you start house hunting. Estate agents often ask for one before accepting viewings, and it shows sellers you’re serious.
Find your home
VariesThe fun part! View properties, explore areas, and find somewhere you love. When you find “the one”, make an offer through the estate agent.
Offer accepted—apply for your mortgage
1-2 daysOnce your offer is accepted, we’ll help you apply for the actual mortgage. You’ll need to provide documents like payslips, bank statements, and ID.
Valuation and survey
1-2 weeksThe lender arranges a valuation to check the property is worth what you’re paying. You can also get a survey to check for problems—it’s optional but recommended.
Legal work (conveyancing)
4-8 weeksYour solicitor does searches, checks contracts, and handles all the legal paperwork. This is usually the longest part, but they’ll keep you updated.
Exchange and completion
The finish line!At exchange, you pay your deposit and the sale becomes legally binding. On completion day, the rest of the money transfers and you get the keys. Time to celebrate!
First time buyer questions
How much deposit do I actually need?
The minimum is usually 5% of the property price, though some lenders offer 0% deposit options with guarantor support. A 10% deposit gives you more choice and better rates. On a £250,000 home, that’s £12,500 (5%) or £25,000 (10%). Remember to budget extra for fees and moving costs too.
Will checking affect my credit score?
No. Getting a quote or agreement in principle from Albot uses a “soft search” which doesn’t show up on your credit file and won’t affect your score. Only when you submit a full mortgage application does a hard search happen—and that’s standard for any mortgage.
Can I buy with bad credit?
Yes, though your options may be more limited. Some lenders specialise in helping people with credit issues—missed payments, defaults, or CCJs. A larger deposit helps, and it depends on how recent and serious the issues were. We search lenders who can help and will be upfront about your options.
How long does the whole process take?
From having an offer accepted to getting the keys typically takes 8-12 weeks. The mortgage application itself takes a few days, but the legal work (conveyancing) is what takes longest. Things can be faster or slower depending on your chain, how quickly everyone responds, and how complicated the property is.
Can my parents help with my deposit?
Absolutely! Most lenders accept gifted deposits from family. They’ll just need a letter confirming it’s a gift not a loan. There are also “family boost” mortgages where parents put savings in a linked account as security—they get their money back after a few years and you get on the ladder.
Do I pay stamp duty as a first time buyer?
Great news—first time buyers pay no stamp duty on properties up to £425,000. If your property is between £425,000 and £625,000, you only pay 5% on the amount above £425k. Above £625,000, you pay normal stamp duty rates. This can save you thousands compared to other buyers.
Should I get a fixed or variable rate?
Fixed rates lock in your payments for 2-5 years—good for budgeting and protection against rate rises. Variable rates can be lower but might go up or down. Most first time buyers choose fixed rates for the certainty. When your fix ends, you can switch to a new deal.
Ready to see what you can afford?
Find out how much you could borrow in about 2 minutes. It’s free and won’t affect your credit score.
Check what I can borrowRepresentative Example (Mortgages)
If you borrow £200,000 over 25 years, initially on a fixed rate for 5 years at 5.25% and for the remaining 20 years on the lender’s standard variable rate of 7.99%, you would make 60 monthly payments of £1,199.12 and 240 monthly payments of £1,393.46. The total amount of credit is £200,000. The total amount payable would be £418,263. The overall cost for comparison is 6.8% APR representative.
Albot is an introducer and technology platform, not a lender and not a mortgage broker. Applications submitted via Albot may be passed to Loan.co.uk Ltd, which provides mortgage advice, carries out suitability assessments, and arranges mortgages with lenders. Loan.co.uk Ltd acts as a mortgage broker, not a lender. Your home may be repossessed if you do not keep up repayments on your mortgage.