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First Home Buyer Guide UK: Stamp Duty, LTV, and Help to Buy in 2026

UK first-time buyer essentials — SDLT relief, LTV tiers, Lifetime ISA, and the mortgage process from offer to completion.

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Buying your first home in the UK in 2026 means navigating SDLT bands, LTV tiers, and a competitive mortgage market. Here's what you actually need to know.

SDLT first-time buyer relief

If you're a first-time buyer purchasing a primary residence in England or Northern Ireland:

  • Up to £300,000: 0% SDLT
  • £300,001 to £500,000: 5% SDLT
  • Above £500,000: standard rates apply, no FTB relief

On a £450,000 home as a FTB, you pay £7,500 — versus £10,000 as a standard buyer.

Scotland (LBTT) and Wales (LTT) have different first-time buyer rules — see our Stamp Duty Calculator for your jurisdiction.

The LTV (Loan-to-Value) tier strategy

Mortgage rates step down at major LTV thresholds:

  • 95% LTV: highest rate band, fewest lenders
  • 90% LTV: typical FTB starting point
  • 85% LTV: meaningful rate drop vs 90%
  • 75% LTV: very competitive rates
  • 60% LTV: best buy rates

If your deposit puts you at 84%, scrape together a little more to hit 80% — over a 25-year mortgage, the rate saving can be £15,000+.

Saving for the deposit

For a £300,000 home with 10% deposit + £2,000 closing costs:

  • Deposit: £30,000
  • Mortgage fee: £1,000
  • Solicitor: £1,500
  • Survey: £500
  • SDLT (FTB): £0
  • Total cash: ~£33,000

Helpful schemes:

  • Lifetime ISA: Save up to £4,000/year, get 25% government bonus (£1,000/year free). Can only be used for first home up to £450,000 or retirement at 60.
  • Help to Buy ISA: Closed to new applicants but existing holders can still use until 2030.
  • Shared Ownership: Buy 25-75% of a home, pay rent on the rest. Then "staircase" up over time.

Mortgage in principle (AIP)

Before viewing properties:

  • Get an Agreement in Principle from a lender (free, no commitment)
  • Valid for 30-90 days
  • Estate agents take you more seriously
  • Sellers prefer offers from AIP buyers

The buying process timeline

  1. AIP (Week 0)
  2. Property search (Weeks 1-8)
  3. Offer accepted, mortgage application (Weeks 9-10)
  4. Solicitor instructed, searches ordered (Weeks 10-12)
  5. Survey (Week 12)
  6. Mortgage offer issued (Weeks 12-14)
  7. Exchange of contracts (Weeks 14-16) — you're legally committed
  8. Completion (typically 1-4 weeks after exchange) — you get the keys

Average end-to-end: 3-4 months. Faster if no chain.

Common UK FTB mistakes

  • Maxing borrowing capacity: Banks lend 4-4.5× income but that leaves no buffer
  • Skipping the survey: HomeBuyer Report (£400-£900) catches major problems
  • Choosing the cheapest solicitor: Slow/incompetent conveyancing causes chain collapses
  • Not budgeting for "soft costs": removals, furniture, immediate repairs add £5-15k
  • Forgetting freehold vs leasehold: leasehold flats have ongoing ground rent + service charges

Use our UK Mortgage Calculator to model repayments and overpayment savings.