Your deposit is the start.
Your budget is the bigger picture.

General information · Updated 9 October 2026

Start with the property price and deposit

Your deposit is the part of the purchase price you pay from your own funds. The mortgage usually covers the balance. Loan-to-value, or LTV, expresses the loan as a percentage of the property value used by the lender.

For example, a £300,000 property with a £30,000 deposit would mean a £270,000 loan and a 90% LTV, before any fees added to the loan. This is an illustration, not a statement of eligibility.

Allow for the other costs

Legal work, surveys, valuation charges, lender fees, moving costs and any applicable property tax can all affect your budget. The amounts depend on the property, product and where in the UK you are buying. Ask the relevant professionals for estimates before committing.

Keep monthly spending in view

A lender will assess income and commitments, but your own household budget matters too. Consider utilities, council tax, transport, insurance, maintenance and a buffer for changes. The mortgage repayment should be understood alongside those costs.

Be clear about where your deposit comes from

Savings, a property sale or a gift may require different evidence. A lender and your solicitor will ask about the source of the money. If part of your deposit is gifted, tell your adviser early so the lender’s requirements can be checked.

Talk before you commit

A conversation before making an offer can help you understand suitable lending options and the evidence you may need. An agreement in principle can be useful, but it is not a guaranteed mortgage offer.