The average first-time buyer in the UK is now 33, and getting on the ladder means finding a deposit of £61,000, or around £125,000 if you’re buying in London. With rates rising and house prices still high, buying feels out of reach for many.

In this episode of Keep the Change, we sit down with Ramneet Bains, Mortgage Adviser at Octopus Money, to unpack what’s really going on. We cover first-time buyer myths, the true cost of getting on the ladder today and the UK’s attitude towards homeownership.

(Psst. This content is for informational purposes only and does not constitute personal financial advice. Before making any financial decisions, we recommend speaking with a money expert like one of our coaches or financial advisers).

What actually is a mortgage?

A mortgage is a type of loan that helps you buy a property. You borrow a lump sum from a lender (usually a bank or building society) and pay it back, with interest, over an agreed term, typically 25 to 35 years.

It’s secured against the property itself, meaning if you can’t keep up repayments, the lender can repossess the home to get their money back.

How much do you need to save to buy a home?

It depends on where you live, what you’re buying, and what kind of deal you’re eligible for. But as a general rule:

• You’ll usually need at least 5–15% of the property value as a deposit
• You’ll also need to factor in legal fees, surveys, moving costs and stamp duty
• Some lenders now offer mortgages with as little as 1% deposit, but this often means a higher interest rate

So if you’re aiming to buy a £300,000 home, a 10% deposit would mean saving £30,000, plus a few thousand more for everything else.

Fixed rate vs variable: which is better?

There’s no right answer. The best option for you depends on your risk appetite, income stability and future plans.

A fixed-rate mortgage gives you certainty: your payments stay the same for a set period (usually 2, 5 or 10 years), no matter what happens to interest rates. A variable or tracker mortgage can move up or down depending on the Bank of England base rate.

So, is it still worth owning property in the UK? 

The pull of homeownership is still strong, and for many, renting feels like “paying off someone else’s mortgage”. But the landscape has shifted. Mortgages are more complex, deposits are harder to save, and the ongoing costs can be higher than expected.

Ramneet puts it plainly: owning a home is still possible, but you’ll likely need to compromise on location, timing or how much you borrow. And with interest rates driving up monthly payments, it’s important to be realistic about what you can afford and the lifestyle trade-offs that come with it.

The dream isn’t dead, but it has evolved. With the right support and planning, homeownership can still be within reach.

Your first step? 

Speak to someone who understands the market. A mortgage adviser can help you work out what’s realistic, what’s available, and whether now is the right time for you to buy.

 💬 Want to talk mortgages? Book a session with one of our advisers