First-Time Buyer Guide
From your salary to your front door — everything you need to know about buying your first home, calculated in one place.
Monthly payment
£1,251
38% of take-home
Your income
You take home £3,293/month after tax
£39,520/year · 21% effective tax rate
The average UK first-time buyer earns £37,000. In 1990, the average home cost 3.5x salary — today it's over 9x.
What can you afford?
Most lenders cap at 4.5x salary. Some specialist lenders go to 5.5x, but stricter criteria apply. Your income multiple directly controls how much you can borrow.
Your property
Deposit needed
£25,000
Stamp duty (FTB)
£0
First-time buyers pay zero stamp duty on the first £425,000. Above £500,000, you lose this relief entirely.
Monthly costs
Your monthly mortgage payment
£1,251
That's 38% of your take-home pay
Stress test: If rates rise to 7.5%, your payment would be £1,663/month (50.5% of take-home)
The Bank of England requires lenders to check you can afford payments if rates rise 3 percentage points. This 'stress test' is why your actual rate matters less than you think.
The full picture
Risky
Mortgage is 38% of your take-home pay
Total cash needed
£27,000
Deposit: £25,000
Stamp duty: £0
Est. fees: £2,000
Monthly mortgage
£1,251
Total interest: £150,187
Total repayable: £375,187
Loan: £225,000
Remaining monthly income after mortgage
£2,043
What you'll also need to budget for
- Buildings insurance~£200/yr
- Council tax£1,200–3,000/yr
- MaintenanceBudget 1% of property value/yr
- Service charge (if leasehold)Varies
For illustration only. Uses 2025/26 HMRC tax rates, first-time buyer stamp duty relief, and assumes no pension or student loan deductions. Actual affordability depends on your lender, credit history, and full financial picture.