While buying your first home in the UK can feel like it comes with a long list of sacrifices, there are simple, practical steps you can take to help turn your homeownership dream into a reality. In our recent webinar, “The Life You Love. In A Home You Own”, in collaboration with Joe The Homebuyer Coach, we broke down the biggest myths around first‑time buying and replaced them with practical, realistic guidance you can actually act on.
This blog turns those key takeaways into a clear overview to help first time buyers understand how much they can borrow and how to save for a deposit without giving up the lifestyle they love.
Myth vs Reality: What really matters when buying a home
First of all, buying a home in the UK doesn’t come down to extreme cut‑backs. What really makes the difference is understanding the right levers: how deposits work, what lenders actually look for, and which parts of your finances matter most.
Once you have that clarity, buying a home often feels far more achievable than you might expect.
Common myths
- I need to give up holidays to save
- I need a perfect credit score
- I need to earn a lot more
- I need years of sacrifice first
The reality
- You need a realistic savings plan
- You need a clean, consistent credit profile
- You need stable income - not a huge one
- You need better information, not a bigger salary
The three things that decide whether you can buy a home
1. Your deposit
A common misconception is that you need a huge deposit to get started.
In reality, a 5% deposit can be enough for many first‑time buyers. What matters most is having a clear plan and knowing what’s achievable for you.
Bear in mind that if you are buying through Shared Ownership, you only need a deposit for the share that you are buying. This means deposits can be as low as £8,000.
2. Your income
Your income determines how much you can borrow, but it’s not limited to your basic salary. Lenders may also consider:
- Overtime
- Bonuses
- Commission
- Secondary income
You don’t need a massive salary, you need a stable one.
3. Your monthly costs
Affordability isn’t just about how much you’re earning; it’s about what you’re spending each month.
Understanding your true income and outgoings gives you a realistic picture of what you can comfortably afford.
Saving smarter (not harder)
One of the strongest messages from the webinar was that consistency beats sacrifice. Practical ways to save without ruining your lifestyle include:
- Knowing your actual numbers - using a budget planner rather than rough estimates
- Swapping some spending instead of eliminating it - small changes add up
- Making progress visible - a dedicated savings pot helps maintain momentum
- Building regular habits rather than relying on big, one‑off cut‑backs
You don’t need to stop enjoying your life. You just need to be intentional with your money.
Boosting your borrowing power
There are several ways to improve how much a lender may offer:
- Buying with someone else: A partner, friend or family member can increase your combined borrowing power. Joint Borrower Sole Proprietor options may allow the home to remain in your name.
- Reducing existing commitments: Credit cards and loan repayments directly reduce affordability. Paying these down can make a noticeable difference.
- Speaking to a broker early: Different lenders assess affordability differently. A broker can help identify which lenders best suit your situation.
The credit score myth
Your credit score is not the whole picture.
There are three main credit reference agencies:
- Experian
- Equifax
- TransUnion
Each uses different scoring models, which means your score can vary. What lenders actually focus on includes:
- Payment history
- Credit utilisation versus available limits
- Length of credit history
- Missed payments, defaults or CCJs
A simple action plan for getting on the housing ladder
If you’re serious about buying your first home, these are the next practical steps recommended:
- Complete a proper budget planner
- Check all three credit agencies
- Get credit utilisation below 50% of your available limit
- Avoid taking out new credit before applying
- Remove outdated financial associations
- Book a free broker consultation to understand your position
- Research available incentives and schemes, such as Peabody’s deposit boost
Example of Shared Ownership homes: Southmere
To show how buying without giving up the life you love can work in the real world, the webinar highlighted Southmere - a lakeside development in Thamesmead, SE2, delivered by Peabody New Homes.
Southmere offers a mix of 1, 2 and 3‑bedroom apartments and duplexes, available through Private Sale and Shared Ownership, making it a strong example of how first‑time buyers can access high‑quality homes in London with a lower upfront cost.
How Shared Ownership works at Southmere
At Southmere, Shared Ownership allows buyers to purchase a 25% or 30% share of a home and pay rent on the remaining share - significantly reducing both the deposit required and the size of the mortgage.
- Shared Ownership homes from £83,125 for a 25% share of a £332,500 property
- Deposits from £8,312 (10% of the 25% share)
- Homes available across 1, 2 and 3 bedrooms, including duplexes
This means buyers don’t need to save for a full property deposit before getting on the ladder.
Frequently asked questions about buying a home
No. One of the key takeaways from the webinar is that buying a home isn’t about extreme cut‑backs or putting your life on hold.
Most first‑time buyers aren’t being held back by holidays or everyday spending - they’re being held back by a lack of clear information.
Understanding how deposits, affordability and borrowing power work often makes buying feel far more achievable than expected, especially through Shared Ownership.
No. Lenders don’t look for a “perfect” score - they look for a clean, consistent credit profile. Your credit score is only part of the picture.
What matters more is your payment history, how much credit you’re using, and whether there are any missed payments or defaults. Checking all three credit agencies and focusing on consistency is far more important than chasing a single number.
Shared Ownership can reduce both the deposit and mortgage needed to buy a home.
At Southmere, for example, buyers can purchase a 25% or 30% share of a property and pay rent on the remaining share, with deposits starting from around 10% of the share value.
This allows buyers to get on the ladder sooner, while keeping monthly costs more manageable and increasing their share over time if their circumstances change.
