Mortgages, deposit and stamp duty in the UK

How large a deposit is needed, how lenders assess affordability and what stamp duty costs from April 2025.

Applies to: United Kingdom. Reviewed 2026-09-25.

Key takeaways

Mortgages are often available up to 90 or 95 per cent of the price, but rates are lower with a larger deposit.
In England and Northern Ireland first-time buyers pay no stamp duty up to £300,000, if the price is no more than £500,000.
Buyers who already own a home pay 5 percentage points extra; non-UK residents pay 2 points extra.

First-time buyers: 0% up to £300,000 and 5% on the portion up to £500,000. Above £500,000 the standard bands apply.
Additional dwelling: plus 5 percentage points on each band.
Non-UK residents: plus 2 percentage points.

Scotland has Land and Buildings Transaction Tax and Wales has Land Transaction Tax, with their own bands and rules.

The lender checks income, outgoings and that you could cope with a higher rate.
Fixed rates for two, five or ten years are common; after that a variable standard rate.
Repayment or interest-only, where interest-only requires a plan to repay the loan.

A Lifetime ISA pays a government bonus on savings for a first home, with a cap on the home's price.