What you need saved
The deposit is the number everyone knows about. The costs around it are the ones that catch people out.
| Cost | Typical amount | When it is due |
|---|---|---|
| Deposit | 5% to 20% of the purchase price | On completion |
| Legal fees and searches | A few thousand | During the process |
| Valuation or survey | Low hundreds to low thousands depending on the level | Early, before you are committed |
| Property transfer tax or duty | Varies by jurisdiction and price | On or shortly after completion |
| Moving costs | Several hundred upwards | On the day |
| Immediate essentials | Whatever the property lacks | First weeks |
Budget beyond the deposit
Aim to have the deposit plus a meaningful buffer. Completing with nothing left is how a manageable purchase becomes a stressful year.
What you can borrow
Two limits apply and the lower one wins: an income multiple, and an affordability assessment that stress tests the payment at a higher rate.
- Up to 95% loan-to-value for first-time buyers, so a 5% deposit is workable.
- Income multiples step down as loan-to-value rises — the more you borrow proportionally, the more cautious the multiple.
- Existing credit commitments reduce what you can borrow, sometimes by more than the balance suggests.
- A gifted deposit from close family is acceptable with a letter confirming it is not repayable.
The journey, start to keys
Work out your budget
Deposit plus costs, then the monthly payment you can genuinely sustain — not the maximum a calculator offers.
Get a decision in principle
An indicative borrowing amount, no obligation. Estate agents take offers far more seriously when you have one.
Find a property and offer
Your decision in principle tells you the ceiling. Offer below it if you can.
Apply in full
Detailed income, expenditure and credit assessment, plus a valuation on the property.
Survey and legal work
Consider a fuller survey than the basic valuation — it is your money at risk, not ours.
Offer, exchange and complete
The formal offer goes to you and your solicitor. Funds are released on completion and repayments begin the following month.
The mistakes we see most
- Opening new credit during the application — a car finance agreement can reduce borrowing capacity substantially.
- Changing job between the decision in principle and completion, which triggers a full re-assessment.
- Large unexplained transfers into the deposit account, which we are legally required to question.
- Budgeting to the absolute maximum, leaving nothing for a rate rise or a broken boiler.
- Relying on the mortgage valuation as if it were a survey. It is not, and it is not for your benefit.
- Waiting until the fixed period has ended before thinking about the next one.
Keep your finances still
From decision in principle to completion, the single best thing you can do is change nothing about your financial position.
Ready when you are
Documents you may also need
Lending Criteria
What we can lend, to whom, and against what property — published in full so you can check before you apply rather than after.
MortgagesToday's Mortgage Rates
Indicative rates across our fixed, variable and specialist mortgage ranges, and the factors that decide which one you are offered.
MortgagesFixed Rate Mortgages
Your rate and your monthly payment are locked for an agreed period, so the largest bill in your household is a known number.
This document was last updated on 1 August 2026. We publish the current version here at all times; superseded versions are available on request.
If anything on this page is unclear, write to us and we will explain it.