Deposits, mortgages, Lifetime ISAs and the true cost of buying your first home in the UK, explained step by step, from saving up to completion.
Neither renting nor buying is 'always better'. It depends on your plans, savings, job and where you live.
Deposit = the part of the price you pay yourself. 5% is often the minimum; 10%+ usually means better rates.
LISA: up to £4,000/year, 25% bonus (max £1,000), for a first home up to £450,000 or retirement. Other withdrawals cost 25%.
A mortgage is a long loan secured on your home. Repayment mortgages pay off the loan; interest-only doesn't.
Fixed = certainty for a set time. Variable/tracker = can rise or fall. When a fix ends, you often move to a pricier standard rate unless you remortgage.
Lenders look at income, spending, debts and credit history, and 'stress test' you. Borrow what YOU can afford, not the max.
Budget for buying costs ON TOP of your deposit — and check the property tax rules for your nation.
There's no single 'credit score' lenders all use. A clean, steady record and affordable debts matter most.
Shared ownership: buy a share, pay rent on the rest, buy more later ('staircasing'). Check all the costs, including service charges.
Leasehold flats come with a lease length, service charges and sometimes ground rent. Short leases can make a home hard to mortgage or sell.
In England, Wales and NI a deal isn't binding until exchange; in Scotland it's binding earlier, at 'missives'. Always phone to confirm bank details before paying.
Steady saving, a LISA if eligible, honest affordability, budgeted buying costs and fraud checks win the marathon.
Free with a codeBuying a Home: quick answers
Mo might move cities for work within 2 years. What usually makes more sense for now?
Renting while saving towards a deposit. Yes. Keep flexible, keep saving. Buy when your plans are steadier.
Buying a Home: in-depth guides
Related topics
- Saving & Emergency FundsBuild a buffer so a broken laptop isn't a crisis.
- Housing & RentingDeposits, guarantors and the flatmate who never pays bills.
- Good Debt vs Bad DebtStudent loans, mortgages, business loans vs BNPL: what debt really costs.
Browse the whole money library or play the free money games.