Question 1

How much deposit do I need to buy a home in the UK?

Accepted Answer

Most UK mortgage lenders require a minimum deposit of 5–10% of the property price. For a £300,000 home, that means £15,000–£30,000. However, a larger deposit (15–20%) typically secures a lower interest rate, which can save thousands over the life of your mortgage. Some government schemes, such as the Lifetime ISA, offer bonuses to help first-time buyers save towards a deposit.

Question 2

What is stamp duty (SDLT)?

Accepted Answer

Stamp Duty Land Tax (SDLT) is a tax you pay when buying property or land in England and Northern Ireland above a certain price. It works on a banded system — you pay increasing rates on portions of the price that fall within each band. First-time buyers benefit from reduced rates on properties up to £500,000. If you already own a property and are buying an additional one, a 5% surcharge applies to the entire purchase price.

Question 3

Should I buy or rent?

Accepted Answer

There's no universal answer — it depends on your financial situation, how long you plan to stay, and local property and rental markets. Buying builds equity over time but comes with large upfront costs and ongoing maintenance. Renting offers flexibility and lower initial costs but doesn't build ownership. Generally, the longer you stay in one place, the more buying tends to favour you financially.

Question 4

How accurate is this calculator?

Accepted Answer

This tool provides a reasonable estimate based on the inputs you provide. It uses the standard mortgage amortisation formula and current SDLT rates (as of April 2025). However, it makes simplifying assumptions — for example, a fixed interest rate for the entire term and steady annual growth rates. Use the results as a starting point for your research, not as a definitive financial plan.

Question 5

Can I trust this calculator?

Accepted Answer

This tool is designed to be transparent and educational. All calculations are performed in your browser using standard financial formulas. No personal data is collected or stored. However, this tool is for guidance only and does not constitute financial advice. Consult a qualified mortgage adviser or financial planner before making major property decisions.

Question 6

What costs are included in the buying calculation?

Accepted Answer

The buying calculation includes: your deposit, stamp duty (SDLT), solicitor fees, survey costs, and mortgage arrangement fee as upfront costs. Monthly costs include mortgage repayments, buildings insurance, council tax, maintenance, ground rent, and service charges. It also factors in property value growth over time, which offsets your costs.

Question 7

What costs are included in the renting calculation?

Accepted Answer

The renting calculation includes monthly rent, council tax, and contents insurance. Rent is assumed to increase annually by the rate you specify. It also models the investment return you could earn by investing your deposit in the stock market or other investments instead, reflecting the opportunity cost of tying up cash in property.

Question 8

How is the break-even point calculated?

Accepted Answer

The break-even point is the number of months after which buying becomes cheaper than renting in total. It compares the cumulative cost of buying (including upfront costs, monthly payments, minus equity gained) against the cumulative cost of renting (including rent, minus investment returns on your deposit). If buying never becomes cheaper within the mortgage term, no break-even point is shown.

Question 9

What is the investment return assumption?

Accepted Answer

The investment return rate (default 5%) represents what you might earn if you invested your deposit in a diversified portfolio instead of using it to buy a property. The 5% default is a conservative estimate for long-term stock market returns after inflation. You can adjust this rate to match your own risk tolerance and investment strategy.

Question 10

Does this calculator work for Scotland or Wales?

Accepted Answer

This tool uses Stamp Duty Land Tax (SDLT) rates, which apply to England and Northern Ireland only. Scotland uses LBTT and Wales uses LTT, which have different rates and thresholds. You can still use the tool for properties in Scotland or Wales — the mortgage, maintenance, and investment calculations will be accurate — but the stamp duty figure will not be correct.