What counts as a first-time buyer in the UK?

A first-time buyer has never previously owned residential property anywhere in the world. In a joint purchase, all buyers must be first-time buyers to qualify for SDLT relief.

Can I use the Lifetime ISA for any property?

No. The Lifetime ISA is only usable for a first home costing £450,000 or less, purchased with a mortgage, after the account has been open for at least 12 months.

What is the Mortgage Guarantee Scheme?

The Mortgage Guarantee Scheme allows 5% deposit purchases on properties up to £600,000. The government guarantees part of the mortgage, encouraging lenders to offer 95% LTV mortgages.

What is the minimum deposit for a first-time buyer?

The minimum deposit is 5% (95% LTV). A 10% deposit opens more mortgage deals. Saving 15–20% gives access to the best rates. Gifted deposits from family are widely accepted.

How much can I borrow as a first-time buyer?

Most lenders offer 4–4.5× annual income. Some specialist lenders offer up to 5.5× for certain professions. Your exact limit depends on income, outgoings, debts, and credit score.

First-Time Buyer Calculator

Calculate your first-time buyer stamp duty saving, Lifetime ISA bonus, and mortgage affordability. Covers all major FTB benefits available in England and Northern Ireland.

Property Price

Deposit

£10%

Annual Income

Interest Rate

Total First-Time Buyer Benefits

£2,500

Stamp duty saving + Lifetime ISA bonus

Stamp Duty (FTB)

£0

FTB SDLT Saving

£2,500

LISA Bonus

£0

Monthly Repayment

£1,539

Loan Amount

£270,000

Income Multiple

5.40x (over 4.5x)

Max Affordable (4.5×)

£255,000

LTV

90.0%

Loan-to-income ratio of 5.4x exceeds typical 4.5× limit. Consider a lower purchase price, larger deposit, or joint application.

How to Use This First-Time Buyer Calculator

Enter your Property Price, Deposit, Annual Income, and Interest Rate. If you have a Lifetime ISA, enter the balance to see your government bonus. The calculator shows your total first-time buyer benefits, monthly repayment, and affordability check.

First-Time Buyer Stamp Duty Relief

As a first-time buyer in England and Northern Ireland, you pay 0% SDLT up to £425,000 and 5% on £425,001–£625,000. If the property costs over £625,000, no first-time buyer relief applies and standard SDLT rates are charged.

Lifetime ISA (LISA)

The Lifetime ISA lets you save up to £4,000 per year and receive a 25% government bonus (up to £1,000/year, maximum £4,000 total bonus over your saving lifetime). The LISA can only be used on a first home costing £450,000 or less. You must be aged 18–39 to open a LISA and 18–49 to contribute.

Affordability Check

Most UK lenders will lend up to 4.5× your annual income (or joint income for a couple). Some specialist lenders offer up to 5.5× for certain professions. The calculator flags if your loan exceeds the standard 4.5× limit.

First-Time Buyer Schemes Available in 2024

Stamp Duty Relief (England):
0% on first £425,000 (vs £250,000 for standard buyers)
5% on £425,001 – £625,000
Max saving: £11,250

Lifetime ISA:
Save up to £4,000/year, get 25% bonus (up to £1,000/year)
Max property value: £450,000
Age limit: open 18–39, contribute 18–49

Mortgage Guarantee Scheme:
5% deposit mortgages on properties up to £600,000
Government guarantees a portion of the lender's losses

Example: First-Time Buyer in London

Sophie Buying a £420,000 Flat in Walthamstow

Sophie earns £55,000 and has saved £42,000 in a Lifetime ISA (receiving a £10,500 bonus over the years) plus £15,000 in other savings — a total deposit of £57,500 after the LISA bonus.

Property Price	£420,000
Total Deposit	£57,500 (13.7%)
Mortgage (86.3% LTV)	£362,500
Stamp Duty (FTB)	£0 (under £425K)
Standard SDLT saving	£8,500
LISA Bonus earned	£10,500
Total FTB Benefits	£19,000
Rate (5-yr fixed)	4.89%
Monthly Repayment (25yr)	£2,090
Income Multiple	6.6× — needs joint application

Sophie's income alone doesn't support the mortgage — she'll need a joint application with a partner earning at least £30,000+ to reach the combined 4.5× threshold, or she needs to look at properties up to £248,000.

Frequently Asked Questions

A first-time buyer is someone who has never previously owned a residential property anywhere in the world — not just in the UK. This includes inherited property. If you are buying jointly and one buyer has previously owned a property, the first-time buyer stamp duty relief does not apply to the transaction. Both buyers must be first-time buyers to qualify.

No. The Lifetime ISA can only be used for a first home purchase where the property costs £450,000 or less. The property must be purchased with a mortgage (cash purchases don't qualify). You must have had the LISA open for at least 12 months before withdrawing for a property. If you withdraw for any other reason before age 60, you pay a 25% penalty charge (which effectively means you lose your bonus plus some of your own savings).

The Mortgage Guarantee Scheme allows buyers to purchase with a 5% deposit on properties up to £600,000. The government guarantees a portion of the mortgage against losses, encouraging lenders to offer 95% LTV mortgages. The scheme is open to both first-time buyers and existing homeowners on new or second-hand properties. Rates are typically higher at 95% LTV than with a larger deposit.

The minimum deposit is 5% of the purchase price. With a 5% deposit (95% LTV), you'll access fewer mortgage deals and pay higher rates, but it gets you on the property ladder sooner. A 10% deposit (90% LTV) opens up significantly more deals. Saving for a 15–20% deposit gives access to the best rates. Gifted deposits from family are accepted by most lenders.

Most lenders offer up to 4.5× your annual income (or combined income for joint mortgages). So with a £40,000 salary, you could typically borrow up to £180,000. Some lenders (particularly those offering professional mortgages for doctors, solicitors, and accountants) may lend up to 5.5×. Your actual limit also depends on monthly outgoings, credit score, and any existing debts.