First-time buyer mortgage calculator (UK, 2026)
First-time buyer mortgages aren't a separate product class — but they unlock cheaper LTV bands and stamp-duty relief. Plan around the 4.5× multiple, the £500,000 stamp-duty cliff and the schemes that move the needle.
Income and deposit
Loan terms
Max property budget: £0
Monthly repayment: £0
A guide, not a mortgage offer. Actual lending depends on credit history, regular outgoings, contract type and stress-tested affordability — a broker can sharpen this estimate.
What changes when you're a first-time buyer
Three things, all financial:
- Stamp duty relief in England (0% up to £300k, 5% to £500k, none above £500k); lighter relief in Scotland; none in Wales
- 5% deposit access via the wider 95% LTV product market, including the Mortgage Guarantee Scheme
- Eligibility for FTB-only schemes — Lifetime ISA, First Homes, shared ownership, Open Market Shared Equity (Scotland)
What doesn't change: the income multiple. 4.5× is the same for FTB and movers.
Multipliers and budget at typical FTB incomes
| Income | 4.5× max loan | + £15k deposit | + £25k deposit | + £40k deposit |
|---|---|---|---|---|
| £35,000 | £157,500 | £172,500 | £182,500 | £197,500 |
| £45,000 | £202,500 | £217,500 | £227,500 | £242,500 |
| £55,000 | £247,500 | £262,500 | £272,500 | £287,500 |
| £65,000 | £292,500 | £307,500 | £317,500 | £332,500 |
| £75,000 | £337,500 | £352,500 | £362,500 | £377,500 |
Most UK first-time buyers in 2026 land in this band — combined incomes from £35,000 (single low-30s) to £100,000+ (joint mid-30s couples in higher-cost areas).
The £500,000 cliff — first-time buyer's biggest trap
England's FTB relief is withdrawn entirely above £500,000. So a first-time buyer at exactly £500,000 pays £10,000 stamp duty; at £500,001 pays £15,000+; at £550,000 pays £17,500.
This catches couples buying in Greater London, the South East and the Edinburgh/Bristol/Cambridge belt who are right at the cliff. Practical advice:
- Get the asking price below £500k if it's currently above. Even £510k → £500k saves £5,000+ in stamp duty plus the £10k of cash.
- Be cautious of the seller's "we'll just put it up by £5k" line. £505k vs £500k costs you £5,250 in incremental stamp duty for £5,000 of cash.
- Watch out for survey-driven price increases. If the survey suggests the property's worth more, the agent may push to renegotiate up. The cliff still bites.
Worked examples
Example 1 — Solo £45k FTB, £25k deposit (5%) on a £225,000 flat. Eligible at 4.5× → £202,500 loan + £25k deposit = £227,500. Buying at £225,000: 5% × 0 = £0 stamp duty. Monthly at 4.5% / 30y on £200,000 loan: ~£1,013.
Example 2 — Joint £55k + £35k FTBs, £40k deposit on a £400,000 home. £90k × 4.5× = £405,000 loan + £40k deposit = £445,000 max. Buying at £400,000: 5% × £100,000 = £5,000 stamp duty. Monthly at 4.5% / 30y on £360,000 loan: ~£1,824.
Example 3 — Joint £70k + £40k FTBs, £50k deposit on a £510,000 London flat. £110k × 4.5× = £495,000 + £50k deposit = £545,000 max — workable. But: at £510,000, FTB relief withdrawn → £15,500 stamp duty (vs £10,000 if structured at £500k). Negotiating £10k off saves £5,500 in tax.
Government schemes that move the needle
- Lifetime ISA — 25% government bonus on savings used for FTB deposit, up to £1,000/year. £4,000 saved → £5,000 toward deposit.
- First Homes (England) — 30–50% discount on selected new-builds for eligible local buyers. Tightly geographic and income-capped, but transformative if you qualify.
- Shared ownership — buy a 25–75% share of a property and rent the rest. Lets a £45k income reach properties priced at £400k+ via a 25% share.
- Help to Buy: Wales — 20% equity loan on new-builds in Wales, interest-free for the first 5 years.
- Open Market Shared Equity (Scotland) — 10–40% equity loan from the Scottish Government for first-time buyers and priority groups.
- Mortgage Guarantee Scheme — government backstop encouraging lenders to offer 95% LTV products. Already mainstream in 2026.
Where Offrly fits
First-time buyers usually have less reference data on what properties "should" cost — most are buying in their first market. Offrly's AI reads each comparable's photos (garden, condition, layout, finish) and hyperlocal pricing resolves prices to the street rather than the postcode — in about 30 seconds. Free. No email. So you walk into negotiation with a real number, not the asking price.
Other mortgage calculators: On £30k salary · On £40k · On £50k · On £60k · On £80k · On £100k · Joint income (£60k+£40k) · Self-employed · Head calculator
Disclaimer: This calculator is for illustration only. Not a mortgage offer and not financial advice. Actual lending depends on your full financial profile, credit history, regular outgoings and the lender's stress-tested affordability model. For a real decision in principle, speak to a whole-of-market broker or a lender directly.
FAQ: First-time buyer mortgage calculator (UK, 2026)
What deposit do I need as a first-time buyer in 2026?
Minimum 5% on most lender products (95% LTV). Some specialist 100% LTV products exist via guarantor or springboard structures. The interest rate gap between a 95% LTV mortgage and a 75% LTV mortgage is typically 0.5–1.5 percentage points — so saving more deposit can pay for itself in lower monthly payments. Source: FCA mortgage market guidance 2026.
What's the maximum mortgage as a first-time buyer?
Same as any other buyer: 4.5× combined income with most UK mainstream lenders, 5× with some, 5.5× with specialists. First-time buyer status doesn't change the multiple — it changes the stamp duty bill (England FTB relief: 0% up to £300k, 5% to £500k, none above £500k) and unlocks several government schemes.
Should I take a 25, 30 or 35-year mortgage as a first-time buyer?
Longer terms cut the monthly but inflate total interest. A £200,000 mortgage at 4.5%: 25 years = £1,112/mo and £133,000 lifetime interest; 30 years = £1,013/mo and £165,000 interest; 35 years = £946/mo and £198,000 interest. Most first-time buyers can refinance to a shorter term once income rises, so taking 30+ years initially trades flexibility for maximum monthly headroom.
What government schemes help first-time buyers?
Several. Lifetime ISA gives a 25% government bonus on savings used for a deposit (up to £1,000/year). First Homes (England) gives up to 50% off new-builds for eligible buyers. Shared ownership lets you buy 25–75% of a property and rent the rest — drastically reducing the deposit and mortgage size. Help to Buy: Wales gives a 20% equity loan on new-builds. Scotland's Open Market Shared Equity offers 10–40% equity loans.
What counts as a first-time buyer?
An individual who has never owned a major interest in a residential property anywhere in the world — including via inheritance, joint ownership or shares in a family home. The test is per-buyer: on a joint purchase, every applicant must qualify. One previously-owning partner withdraws stamp-duty FTB relief entirely.