First-time buyer analysis • Adjust all inputs to compare any
property
As of March 2026
This calculator models the full financial picture of buying a UK property
as a first-time buyer. Enter your salary, property price, and deposit to
see mortgage repayments, Stamp Duty Land Tax (SDLT), upfront costs, and
whether you qualify for first-time buyer relief.
Planning to rent out spare rooms or list on Airbnb? The tool calculates
net rental income after tax — including the Rent-a-Room scheme, Section 24
mortgage interest relief, and the personal allowance taper trap between
£100k and £125,140. Adjust pension contributions to see how salary
sacrifice can reduce your tax bill.
Compare monthly cashflow, long-term equity growth against a Stocks &
Shares ISA alternative, and review key risks before making an offer.
All figures use current 2026 UK tax rates and can be adjusted to match
any property.
Net Monthly Take-Home
£5,554
After income tax + NI
Min Deposit Needed
(at 5x)
£211,450
= price − max mortgage (£483,550)
Monthly Cashflow Surplus
£4,558
After all costs + net rent
Property Price
PROPERTY
Asking price£695,000
Size121 m²
£/m²£5,744
SDLT£24,750
FTB reliefNo
Total cash needed~£250,750
Income
YOUR EARNINGS
Base salary/yr£95,000
Bonus %1.8% (£1,710)
%
Total gross income£96,710
Mortgage Calculator
SPECIALIST LENDER
Deposit10% (£69,500)
Mortgage rate4.50%
Term25 years
Property price£695,000
Deposit£220,000
Mortgage amount£475,000
LTV68.3%
Income multiple used4.91x
Monthly repayment£2,638
Total repaid over term£791,400
Total interest paid£316,400
Mortgage amount exceeds 4.5x income. You'll need a specialist lender
or to factor in lodger income. Speak to a broker.
Upfront Costs
Deposit£220,000
Stamp Duty (SDLT)£24,750
Solicitor/conveyancing~£2,500
RICS survey~£1,000
Mortgage arrangement fee~£1,500
Total cash required£250,750
SDLT Breakdown
No FTB SDLT relief — property exceeds the £500k threshold. Standard
rates apply.
Rental Income
ACTIVE STRATEGY
Flatmates (long-term)
Room 1 rent/month£1,200
Room 2 rent/month£1,200
Gross (rooms/year)£28,800
Airbnb — Whole Flat (90-day limit)
Whole flat — you're away. Does NOT qualify for Rent-a-Room; always
taxed under standard accounting.
Nightly rate£100
Nights let (max 90)63 nights
Gross Airbnb£6,300
After platform fees (15%)£5,355
Total gross rental/year£34,155
Property Outgoings
COSTS
Service charge/yr−£2,402/yr (£200/mo)
Council tax/yr−£2,100/yr (£175/mo)
Ground rent/yr−£0/yr (£0/mo)
Insurance/mo−£80
Bills (gas/elec/water/internet)/mo−£200
Total outgoings (excl. mortgage)−£655/mo
Tax & Pension
IMPORTANT
Pension (Salary Sacrifice)
Annual contribution£0/yr
Salary after pension£96,710
Income tax + NI saving£0
New net take-home/mo£5,554
Income Tax Breakdown (Employment)
Total income tax£0
National Insurance
Total NI£0
Rental Tax Method
First £7,500 tax-free, no expense deductions allowed.
Mortgage interest/yr£0
Service charge + insurance£2,882
Let proportion (rooms/total)67%
Deductible expenses£0
Section 24 tax credit (20%)£0
Taxable rental income£26,655
Adjusted net income£123,365
Exceeds £100k by£23,365
Personal allowance lost£11,683
60% trap: Income between £100k–£125,140 is
effectively taxed at 60%. Use the pension slider to reduce below
£100k.
Tax on rental (est.)~£13,800
Net rental after tax~£20,355/yr
Per month~£1,696/mo
Monthly Cashflow
PROJECTION
Income
Net salary+£5,554
Net rental (flatmates)+£1,250
Net Airbnb (averaged)+£446
Total monthly income£7,166
Property Costs
Mortgage−£2,638
Outgoings (from above)−£655
Total property costs−£3,293
Monthly surplus
Before living costs
£4,073
ISA Alternative
COMPARISON
Initial ISA Deposit
£
Monthly ISA Contribution
£
ISA Growth Rate
5.0%
Timeframe 10 years
S&S ISA annual allowance is £20,000 (£1,667/mo). Growth is
tax-free. Compare against property equity on the chart.
ISA value after 10 years£0
Total contributed£0
ISA growth earned£0
Equity Projection
ILLUSTRATIVE
Compares buying (equity = property value minus mortgage) vs keeping
deposit in an ISA with contributions. Dashed orange line = ISA value
over time.
Key Risks & Actions
Check the lease —
subletting and Airbnb may be prohibited. Leasehold flats often
have restrictions. Do this before making an offer.
Lease length — not
stated. Under 80 years is costly to extend and affects
remortgaging. Verify urgently.
Mortgage consent to let
— residential lenders must approve lodgers. Disclose your plan to
your broker upfront.
90-day rule — London
limits short-term letting to 90 nights/year. You must use the
property as your main home for the rest of the year. Ensure your
records support this (GP, HMRC, bank).
Tax planning — rental
income may push you into the 60% effective rate band
(£100k–£125k). Consider salary sacrifice / pension contributions
to bring gross income below £100k before renting.
Use a mortgage broker
— only a specialist can access 5x+ multiples and lenders who
consider lodger income. High street banks alone won't get you
there.
Service charge history
— £2,402/yr today but request 3 years of accounts. Roof terrace
maintenance can be significant.
Cashflow Breakdown
Annual Income Allocation
Pension Contribution Strategy — Avoid the 60% Trap
Without pension contribution
Total income ~£123,000 → 60% effective rate on £23,000 in taper band
→ ~£13,800 lost
With £23,000 pension contribution
Reduces gross income below £100k → full personal allowance retained
→ saves ~£9,200 in tax
Recommended action
Ask employer to increase pension via salary sacrifice before you
start taking lodger income